Can You Terminate Your Rental Contract Early in Spain?

[Anderson]

At the end of 2020, a quarter of people in Spain rented their homes, slightly below the European average of 30%. However, with many struggling to save enough to buy a property, the number of renters has been rapidly increasing. If you are a tenant, you may be wondering whether you can end your rental contract early. It's important to understand your rights, even if you have no plans to terminate the agreement prematurely.

 

The answer is yes, you can legally cancel the contract and vacate the property, but there may be financial consequences. According to Spain's Urban Lease Law, tenants can leave before the end of the contract, but only if they have lived in the property for at least six months. If you terminate the agreement early, you may be required to pay one month's rent for every year remaining on the contract.

 

If you decide to terminate your rental contract early, you may face financial consequences. The penalty is based on the duration of the contract you fail to complete.

 

For instance, if you have a one-year contract and leave after six months, you would have to pay a penalty equivalent to one month's rent, covering up to the first year. In contrast, if you terminate a five-year contract after one year, you would have to compensate the landlord with four months' rent, covering the remaining four years of the contract.

 

As long as you have lived in the property for at least six months, you are legally entitled to terminate the contract. However, you must give your landlord a minimum of 30 days' notice. It's essential to note that the contract must contain a clause regarding compensation. If no compensation is mentioned, you can leave the property without incurring a penalty.

 

As you may have gathered, it is advisable to opt for a 12-month contract if you are uncertain about your length of stay. This way, any penalties for leaving early will be less severe.

 

On the other hand, penalties could be significant if you have agreed to a five-year contract and wish to terminate it early.

Furthermore, it is important to know that tenants may legally terminate the contract early if the landlord fails to address habitability issues or causes unnecessary disturbances.

 

Can landlords terminate the contract early?

Yes, but only under certain circumstances. For instance, if the landlord or one of their close relatives needs to occupy the property, they may do so, but only if this is explicitly stated in the contract.

 

This clause only applies if the tenant has resided in the property for at least 12 months, and the landlord must provide at least two months' notice. However, this is only applicable to individual landlords and not businesses.