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Renting a home in the Balearics: contract, deposit and basic rights

Before you sign a lease it is worth knowing which law applies, what the landlord can ask of you and where your deposit ends up. This guide explains the basics and flags what changes often.

Sources checked on 24 October 2026 · 4 min read

General information. It does not replace the advice of a professional.

A tradesman's hands applying plaster to a wall with two trowels.
Photo: Sasun Bughdaryan (Unsplash)

Which law applies

Renting a home to live in is governed by the Urban Leases Act (Ley de Arrendamientos Urbanos, LAU). In the Balearic Islands the regional housing act adds rules on deposits and their register Act 5/2018.

The LAU was amended several times in 2026. The consolidated text on the BOE, updated on 7 October 2026, includes recent changes, among others to the extension of the lease (art. 10) and to rent updates (art. 18), and in areas declared tense residential markets it adds limits on rent (art. 17). That is why this guide gives no extension periods or percentages: before you sign, read the version in force or ask a lawyer to check it.

The contract: what the law says

  • Length. It is agreed freely, but if the lease is short the law extends it year by year up to a minimum (five years, seven if the landlord is a legal entity) LAU, art. 9. The later extension rules are the ones that changed in 2026.
  • Rent. The parties set it freely. It is paid monthly, and the landlord cannot demand more than one month in advance LAU, art. 17.
  • Increases. Without an express agreement the rent is not updated, and if one is agreed the law limits how much it can rise LAU, art. 18.
  • If you want to leave. For a main home, the tenant can withdraw after six months, giving thirty days’ notice LAU, art. 11.

The deposit and its registration with the IBAVI

The deposit (fianza) is a cash amount handed over when the lease is signed. For a home it equals one month’s rent (two for business premises or other uses) LAU, art. 36.

In the Balearic Islands the landlord (the arrendador) must lodge that deposit with the body that manages deposits, for the whole life of the lease and without it earning interest Act 5/2018, arts. 55 and 56. Today that body is the IBAVI, and since 4 April 2022 its management has been run by the Balearic association of property administrators (Col·legi d'Administradors de Finques de les Illes Balears, CAFBAL) IBAVI deposits page.

  • Lodging, cancelling and updating the deposit are done online, with a digital certificate, electronic ID card or permanent Cl@ve online office.
  • The deadline and method for lodging it are set by regulation: the law gives no specific deadline here. Ask CAFBAL or read the IBAVI page.
  • Public bodies can require proof of the deposit when you submit a lease in a procedure, and not lodging it is an administrative offence Act 5/2018, art. 59.

This guide’s tip: ask the landlord for the proof of deposit. This recommendation does not come from an official source.

Inventory and condition of the property

The deposit is the landlord’s security, and also your way of getting that money back without arguments. So put the following in writing on the day you move in:

  • a list of what the property includes (furniture, appliances, keys);
  • the condition of the walls, floors and installations, with dated photos;
  • the electricity and water meter readings.

Both sign that document and each keeps a copy. This is practical advice from this guide, not an obligation cited from an official source.

The tenant’s basic rights

  • Repairs. The landlord must carry out the repairs needed to keep the property fit for the agreed use, and cannot raise the rent for doing so LAU, art. 21.
  • Only one month in advance. You cannot be required to pay more than one month’s rent in advance LAU, art. 17.
  • Limited deposit. For a home it is one month’s rent LAU, art. 36.
  • Being able to leave. After six months and with thirty days’ notice, for a main home LAU, art. 11.

If there is a dispute, it is wise to talk to a lawyer before you stop paying or leave the property.

A holiday let is not the same thing

The LAU leaves out the temporary letting of furnished homes for tourist purposes and for profit LAU, art. 5. Those stays have their own regime in the Balearic tourism act: to market them you must submit a responsible declaration to the tourism authority, be in a zone declared suitable and show the registration number in all advertising Act 8/2012. It is known as DRIAT.

If you are looking for a home to live in, an advert with that number is an offer of tourist stays: it is not covered by what this guide explains.

Who to go to

  • An estate agent: to search and view. Check whether the agent appears in the official register of estate agents and who pays the commission.
  • A lawyer: to review the contract before you sign.
  • A gestoría: if you would rather have someone handle the deposit and other paperwork for you.
  • CAFBAL and the IBAVI: for everything to do with the deposit.

If the professional advertises being a registered member, check it: how to do it. And if you are buying instead of renting, see who does what when you buy.

Professionals in the directory

Categories related to this guide:

Estate agentsLawyersTax and administrative advisersNotaries

Sources and date checked

Official sources checked on 24 October 2026. Procedures, requirements and amounts change: always check the source before you act.

General information. It does not replace the advice of a professional.

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