After you find an apartment in Madrid, you must pay a security deposit. This guide explains how the apartment deposit works in Spain, how it is protected, and how to reclaim it.
Understanding the deposit
In Spain, the security deposit is called the fianza. By law, the deposit is one month of rent for unfurnished apartments. For furnished apartments, the deposit is two months of rent.
Landlords might also request a garantía adicional (additional guarantee). This is an extra cash deposit to protect the landlord. By Spanish law, this additional guarantee cannot exceed two months of rent.
This means the absolute maximum cash deposit you will pay is three months of rent. This maximum does not include the first month of rent paid upfront.
How the deposit is protected
Landlords in Madrid cannot keep the fianza in their personal bank account. They are legally required to deposit it with a regional government agency.
In Madrid, this agency is the IVIMA (Instituto de la Vivienda de Madrid). The landlord must deposit your fianza within 30 days of signing the lease. If they do not deposit the money, they face legal interest and fines.
The deposit receipt
You should request the resguardo de depósito (deposit receipt) from the landlord. This receipt proves that the landlord registered your deposit with IVIMA.
You need this receipt to claim rental tax deductions on your Madrid income tax return. Ask for the receipt within the first month of your tenancy.
How to verify the deposit
You can verify if your landlord registered the fianza with the government. Visit the official website of the Comunidad de Madrid.
Use your NIE and the contract details to check the status online. If the deposit is not registered, you can file a complaint. The regional government will investigate and can fine the landlord.
How to pay the deposit safely
You should protect your money by using secure payment methods. Never let a landlord rush the payment.
Never pay in cash
Always pay the deposit using a bank transfer. This creates a permanent record of the transaction.
Never pay in cash. Cash payments are difficult to prove if a dispute arises.
Payment timing
Only transfer the deposit when you sign the contrato de arrendamiento (rental contract). Never send money before you have seen the apartment in person.
You should receive the keys immediately after signing the contract and making the payment.
What to check before signing a lease in Spain
Reclaiming your deposit
When you move out, you must go through a specific process to get your money back.
The move-out document
On your final day, you and the landlord must inspect the apartment together. You must sign a move-out document called the documento de entrega de llaves (key handover document).
This document states that you returned the keys and records the condition of the property.
Deductions and timelines
The landlord has 30 days to return your deposit after you sign the key handover document. They can make deductions for unpaid utility bills (gastos de suministros). They can also deduct money for damage to the property.
Normal wear and tear
The landlord cannot make deductions for normal wear and tear (desgaste por el uso ordinario). This includes faded paint, small scuffs on walls, or old appliances breaking.
If the landlord takes longer than 30 days to return the deposit, you can charge interest.
Handling deposit disputes
If the landlord refuses to return your deposit without a valid reason, you must take action. First, send a formal demand letter.
In Spain, this formal letter is called a burofax. You must send it through the official post office (Correos).
A burofax is legally certified. It proves the content of your letter and that the landlord received it. It costs about €30 to send.
If the landlord still refuses to pay, you can start a legal claim. For claims under €2,000, you do not need a lawyer (abogado).
You can file the claim yourself at the local court (Juzgado de Primera Instancia). This process is free and relatively simple.
Questions and answers
Can I use the deposit to pay my last month of rent?
No. You cannot use the fianza to cover your last month of rent. You must pay your rent as normal. The landlord returns the deposit after you move out and they inspect the apartment.
What is the maximum deposit a landlord can ask for?
Three months of rent. The legal minimum is one or two months of fianza. The landlord can request a maximum of two months of garantía adicional.
How long does the landlord have to return the deposit?
30 days. The landlord must return the money within 30 days after you return the keys and sign the move-out document. If they delay, you can legally charge interest.
What if the landlord does not deposit the money with IVIMA?
They face fines. You can report the landlord to IVIMA. You will also be unable to claim rental tax deductions on your Madrid income tax return without the official deposit receipt.
Who pays for a broken boiler or plumbing issues?
The landlord. The landlord must pay for major repairs needed to keep the apartment habitable. You only pay for minor repairs under €150 or damage you caused.
How do I send a burofax?
Go to any Correos post office. You can also send it online through the Correos website. You must select the options for certificación de texto (content certification) and acuse de recibo (proof of delivery).
