How Much does it Cost to Rent a Property in Spain?

 

Rental property in Spain costs

If you’ve chosen to rent a property in Spain, you’ll be interested to know how much you can expect to pay.

It’s also useful to be aware of other expenses incurred when you rent in Spain.

In this article, we take a look at rental rates around the country and list the other things you’ll need to pay for as a tenant.

Average rental price in Spain

As is the case in most countries, rental rates in Spain vary hugely.

This makes it difficult to estimate exactly how much you should expect to pay when you rent a property in Spain.

The price depends hugely on the following factors:

  • The size of the city – the larger the more expensive.
  • The location of the rental – city centre and frontline beach properties command a premium.
  • Amenities provided in the rental – the better equipped the property, the higher the cost.
  • Demand for holiday lets – landlords in cities popular with tourists tend to prefer the higher returns from holiday lets. This leads to a shortage of long-term rentals and subsequent pressure on prices.

However, as a general idea, the average price for a 3-bedroom rental property in Spain in March 2017 came in at €695.

The price rise over Q1 this year stood at 8.8%, well ahead of inflation and an indication of the strong rental market at the moment.

Within this average came huge variations. The cheapest 3-bedroom rentals were in Extremadura – the monthly rate was just €415 – while the most expensive was in the Balearics where you needed to pay almost double the national average: €1,242.

The same pattern occurs when the property has 1 bedroom. The Spanish average is €519, but in the cheapest region (Castille-La Mancha), the price drops to €316. However, in the Balearics it rises to €793.

Recent reports on the rental situation on the islands of Mallorca and Ibiza point to there being little property available (even studios) for less than €600 a month.

Discover 10 tips for finding rental property in Spain. Link to 10 tips on finding rentals

Most expensive cities

In the ranking for Spain’s most expensive cities, Barcelona takes first place with an average price of €13.17 per square metre. Madrid lags only slightly behind at €11.22.

Malaga and Seville come in at €8.60 and €8.40 respectively. Cities like Valencia, Alicante and Granada, however, are considerably cheaper.

Prices in provinces

It’s costly to rent property in several provinces too. This is the case with Malaga province (home to the Costa del Sol) where average rentals stand at €816 a month and Gran Canaria province (including the islands of Gran Canaria and Lanzarote) with an average of €722.

However, at the other end of the scale sit provinces popular with foreigners moving to Spain and with very affordable rentals.

Murcia, one of the most popular places to buy a property, is a case in point.

In this part of the country, average monthly rentals come in at just €536.

Rentals in the province of Alicante, home to the Costa Blanca, cost only slightly more and average €548 a month. Those in Valencia, currently one of the hotspots for property in Spain, cost €572.

Other costs of renting a property in Spain

Along with the monthly rent, tenants also have to pay for the following:

Utility costs – you’ll be liable for all utility bills, e.g. electricity, water, gas, telephone and internet.

These obviously vary depending on your consumption, but expect to pay between €50 and €150 a month per adult.

Refuse tax – some towns charge a refuse tax for refuse collection and deposal. Tenants pay this tax, not the owner, and it varies depending on the size of the property. Expect to pay from €30 a year.

Annual rent increases – long-term rental contracts are indexed to inflation and rent rates subject to rise in line with inflation. Your landlord will review your rent annually and put it up accordingly.

For example, rental rates revised in March 2017 went up by 2.3% for inflation.

Read more about long-term rental contracts in Spain.

As a tenant you don’t have to pay local rates or community charges; these are the landlord’s responsibility.