Rental Deposit in Madrid: How Much, Where It Goes, How to Get It Back
What the fianza and extra guarantees can be, why your landlord must lodge the deposit with the Comunidad de Madrid, what can be deducted and how to claim it back.
In Madrid, the legal rental deposit (fianza) is one month’s rent for a home, and the landlord must lodge it with the Comunidad de Madrid’s Agencia de Vivienda Social. Extra guarantees are capped at two months, one for temporary lets. The landlord has one month after you return the keys to refund it, as of November 2026.
How much deposit can a Madrid landlord ask for?
The Ley de Arrendamientos Urbanos (LAU) makes a cash deposit compulsory and fixes its amount. Anything beyond it is an “additional guarantee”, which has its own cap.
| Type of contract | Legal fianza | Maximum extra guarantee |
|---|---|---|
| Main home (contract up to 5 or 7 years) | 1 month’s rent | 2 months’ rent |
| Temporary home (genuine temporary reason) | 1 month’s rent | 1 month’s rent |
| Non-residential use (office, shop) | 2 months’ rent | Agreed freely |
The cap on temporary contracts and the ban on forcing tenants to buy unpaid-rent insurance come from Real Decreto-ley 29/2026, in force since October 8, 2026. The October decree classes temporary rentals as housing, which carries a one-month fianza; contracts signed under the old “seasonal” label may still show two months, so check how yours was drafted. The current wording is in the consolidated LAU, article 36.
During the first five years of a lease (seven with a company landlord), the fianza is not updated. On later renewals it can be adjusted to the current rent.
Where does the landlord have to lodge the deposit?
In the Comunidad de Madrid, landlords must deposit the fianza with the Agencia de Vivienda Social. The regional page on rental deposits gives a deadline of 30 days from signing. The deposit earns no interest while it is held. Late deposits carry a surcharge, and failing to deposit is an administrative offense under regional law 12/1997, with fines that rise with the amount not lodged.
You can check it yourself. A tenant can file a request for accreditation of the deposit (solicitud de acreditación de depósito) with a copy of the contract, online with a digital certificate, by post or at a registry office. The same document is useful when you need proof of rent for tax purposes.
When must the landlord return it?
The LAU gives the landlord one month from the day you hand back the keys. After that, the outstanding balance earns legal interest. The landlord reclaims the deposit from the Agencia de Vivienda Social separately; that procedure is his, and it does not change your deadline.
Since October 2026, the law also asks both parties to sign an end-of-lease document recording the state of the flat. If no document is signed, or it lists no damage, the flat is presumed to have been returned in good condition unless the landlord proves otherwise.
What can be deducted?
The deposit covers your obligations under the contract. Common lawful deductions:
- unpaid rent or unpaid bills that were in your name or agreed in the contract;
- damage beyond normal wear, such as broken appliances you caused or holes in walls;
- cleaning or repainting only if the flat was returned in a clearly worse state than at the start.
Normal wear and tear from ordinary use cannot be charged. Ask for receipts or quotes for any deduction.
How do you claim an unreturned deposit?
- Prepare evidence. Contract, inventory, photos from moving in and out, the end-of-lease document and messages about the keys.
- Send a burofax. A burofax from Correos with certified text and proof of delivery is the standard formal demand. Give a date to pay, for example 10 days.
- Try arbitration. If your contract includes a clause submitting disputes to the Comunidad de Madrid’s Consejo Arbitral para el Alquiler, you can file there. Consumer arbitration through the Junta Arbitral de Consumo usually applies only when the landlord is a business that accepts it.
- Go to court. Claims up to €2,000 can be filed through a simple verbal procedure (juicio verbal) without a lawyer or court agent. Since April 2025, most civil claims must show a prior attempt to settle, and a burofax with a clear proposal is commonly used for that.
For complex cases, check with a lawyer, the Madrid Bar Association’s legal orientation service or a consumer office.
Bottom line
Photograph every room on the day you move in and email the photos to the landlord, so they carry a date. On moving out, do a joint inspection and sign the end-of-lease document; it shifts the burden of proof in your favor if it lists no damage.
FAQ
Can I use the deposit as my last month’s rent?
Not unilaterally. The fianza guarantees obligations until the end, and the landlord can claim the unpaid month. Some landlords agree to it in writing, which is the safe way.
Does the deposit earn interest?
No interest is paid while it sits with the Agencia de Vivienda Social. Interest only starts if the landlord returns it late, one month after you hand back the keys.
Who gets the interest if the deposit is returned late?
You do. The outstanding balance earns legal interest from one month after you hand back the keys until it is paid.
Is a two-month “fianza” on a normal lease legal?
The legal fianza is one month. A second month can be taken as an extra guarantee, and extra guarantees cannot exceed two months on standard leases. More than three months in total is above the legal limits.
Starting a new rental? Read how renting a flat works in Madrid and, if problems come up, what to do when things go wrong with a rental.
