After you move to Madrid and set up your budget, you need to find an apartment. This guide explains how to search for housing in the city, step by step.
Is it hard to find an apartment in Madrid?
Yes, it is really hard. The rental market in Madrid is very fast and competitive. Good apartments often rent out within hours of being listed.
Expect to spend 4 to 8 weeks looking for a place. You must prepare your documents early. Be ready to decide immediately during a viewing.
Set your budget
Rent prices in Madrid have risen quickly in recent years. You will spend a large portion of your income on housing.
Rental prices by apartment type
A one-bedroom apartment in the city centre costs between €900 and €1,400 per month. In outer neighbourhoods, prices range from €700 to €950 per month. If you rent a room in a piso compartido (shared apartment), you will pay €400 to €600 per month.
Housing prices by neighbourhood in Madrid
Security deposit and guarantees
You must budget for the fianza (security deposit). 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 ask for a garantía adicional (additional guarantee) of one or two months of rent.
Example: You rent a furnished apartment for €1,100 per month. The landlord asks for a two-month fianza of €2,200. You pay the first month upfront, making your total starting cost €3,300.
Landlords sometimes ask for an aval bancario (bank guarantee). This is a certificate from a Spanish bank. It locks up three to six months of rent in a bank account. This protects the landlord if you stop paying rent.
Bank guarantees are expensive and hard for foreigners to get because they require a Spanish credit history.
Additional monthly costs
You must pay utility bills separately. These are called gastos de suministros (utilities). They cover electricity, water, and gas. Budget €100 to €200 per month for these bills.
You should also check who pays the gastos de comunidad (building community fees) and IBI (property tax). These fees are almost always paid by the landlord. Ensure your contract states that the landlord pays these costs.
What you need before you start
You must prepare your application documents before you start looking. Landlords expect you to have these ready at the viewing. If you do not have them, another applicant will get the apartment.
Required document checklist
- NIE : Your Número de Identificación de Extranjero (foreigner identification number). You need this to sign a lease. NIE guide.
- Contrato de trabajo (employment contract) : Proof of your job and income. Landlords prefer permanent contracts (contratos indefinidos).
- Nóminas (payslips) : Your last three monthly payslips. They prove you can afford the rent.
- Declaración de la renta (tax return) : If you are self-employed, you must show your recent tax returns.
- Spanish bank account : You need this to pay rent and utility bills. best bank accounts for expats in Spain.
Finding a guarantor
If you do not have a Spanish employment contract, landlords might reject your application. You can offer a fiador (guarantor) to secure the apartment. A guarantor is a person who signs the lease with you.
They agree to pay the rent if you cannot pay. The guarantor must live and work in Spain.
1. Search online portals
Most apartments in Madrid are listed online. You should check the major property portals several times a day.
Best property websites
The most popular rental websites in Spain are:
- Idealista : The largest rental site in Spain. It has the most listings and updates quickly.
- Fotocasa : The second largest site. It has similar listings but a different search interface.
- Badi : The best platform for finding rooms and shared flats.
- Spotahome : Good for mid-term rentals. You pay a booking fee but can rent without a viewing.
Using search alerts
Set up email and mobile alerts for your search criteria. Filter by “Alquiler” (Rent) and select “Viviendas” (Homes). You can draw search zones on the map to target specific streets.
Contact landlords immediately when a new listing appears. Do not pay anything before seeing the apartment in person.
2. Contact landlords and agencies
Many listings are put up by agencias inmobiliarias (real estate agencies). Some are listed by private landlords.
Phone calls versus messages
You should contact agents by phone or WhatsApp. Emails are rarely answered because the demand is too high. Call the agent immediately when a new listing appears.
If you send a message, use this simple Spanish template:
Hola, estoy interesado en el piso de la calle [Street Name]. ¿Sigue disponible? Me gustaría concertar una visita. Gracias.
This message asks if the apartment is still available and requests a viewing.
Translation and language support
Most agents and landlords do not speak English. If you do not speak Spanish, ask a Spanish speaker to call for you. You will lose the apartment if you cannot communicate quickly.
In May 2023, Spain passed a new housing law. Real estate agencies can no longer charge tenants for their services. The landlord must pay the honorarios de agencia (agency fees).
If an agency asks you to pay a fee, this is illegal. You should refuse and report them.
3. Visit the apartment
Never rent an apartment without visiting it first. Online listings can be misleading or fake.
What to check during the viewing
Check the condition of the apartment during the viewing. Turn on the taps to check the water pressure. Check the walls for signs of dampness or mould. Ask about the orientation of the apartment.
South-facing apartments get more light but can be hot in summer. North-facing apartments are darker and colder in winter.
Ask the agent for the CUPS (Código Universal del Punto de Suministro) number for electricity. You need this to set up your electricity contract.
Heating and air conditioning systems
Ask about the heating system. Central heating (calefacción central) is sometimes included in the building community fees. This means your heating is free.
Individual heating (calefacción individual) is more expensive because you pay for the gas or electricity yourself.
Madrid gets very hot in July and August. Temperatures often exceed 40°C. Check if the apartment has air conditioning (aire acondicionado).
If it does not, you will need to buy fans.
How electric and water bills work in Spain
4. Sign the rental contract
Once the landlord accepts your application, they will send you a contrato de arrendamiento (rental agreement).
Key lease terms and conditions
Read the contract carefully before you sign. The contract must be in Spanish. You can translate it to read it, but only the Spanish version is legally binding.
Standard long-term contracts last for one year. By law, you have the right to renew the contract every year for up to five years. The landlord cannot force you to move out during this period.
Ensure the contract lists all furniture and appliances. This is called the inventario (inventory). Take photos of the apartment when you move in. Send these photos to the landlord as proof of the condition.
Early lease termination rules
By law, you can leave the apartment after six months. You must give the landlord 30 days notice. The contract can specify a penalty if you leave early.
This penalty is equal to one month of rent per unused year of the contract. If the contract does not mention this penalty, you do not have to pay anything.
What to check before signing a lease in Spain
5. Pay the deposit
You must pay the fianza when you sign the lease.
Official deposit registration (IVIMA)
In Madrid, the landlord is legally required to deposit your fianza with a government agency. This agency is the IVIMA (Instituto de la Vivienda de Madrid). The landlord must deposit the money within 30 days of signing the lease.
The landlord must give you proof of this deposit. This deposit protects your money. It ensures you get the deposit back when you move out.
You also need the deposit certificate to claim rental tax deductions in Madrid.
Transferring the money safely
Never pay the deposit in cash. Always use a bank transfer so you have a record of the transaction. Never send money before you sign the contract and receive the keys.
How the apartment deposit works in Spain
If you cannot find an apartment
If you cannot find a long-term apartment, you have other options.
Short-term accommodation options
You can rent a short-term apartment or stay in an Airbnb for your first few weeks. This gives you time to search for a long-term place without pressure. Short-term rentals are more expensive but require fewer documents.
Shared flat alternatives
You can rent a room in a shared flat (piso compartido). This is easier than renting a whole apartment. You only need to show your passport and pay a deposit.
You will share common areas with other tenants (compañeros de piso).
Hiring a relocation consultant
You can hire a relocation agent to help you search. Relocation agents know the local market. They can find apartments before they are listed online.
They also help you with the documents and lease translation. This service is expensive but saves time.
Relocation consultants and agencies in Madrid
Questions and answers
Do I need to pay the agency fee?
No. Under the housing law of May 2023, landlords must pay the agency fees. Agencies cannot charge tenants for finding or renting an apartment.
Can I rent an apartment without a NIE?
Maybe, but it is very difficult. Standard agencies and landlords will ask for your NIE. You might find a private landlord who accepts a passport, but this is rare. You can use short-term rentals until your NIE arrives.
How much is the deposit?
Usually one or two months of rent. The legal minimum is one month for unfurnished apartments. It is two months for furnished apartments. Landlords cannot ask for more than two months of additional guarantee.
Are utilities included in the rent?
Usually not. You must pay for electricity, water, and gas separately. These bills are usually debited directly from your Spanish bank account. Ask the landlord for past bills to estimate the cost.
What are community fees?
They are building maintenance fees. They are called gastos de comunidad in Spanish. Landlords must pay them, not tenants. Ensure your lease states that the landlord pays these fees.
Can the landlord enter my apartment?
No. Once you sign the lease, the apartment is your private home. The landlord cannot enter without your permission. This is true even if they want to check the property or show it to new tenants.
