What is the LAU and why three regimes?

Quick answer

The LAU (Law 29/1994) governs urban rentals in Spain and distinguishes three regimes: primary residence (art. 2), rental "for use other than dwelling" (art. 3), and tourist-use rental (art. 5). Each has different rules, durations, protections and tax obligations.

The original 1994 LAU has been reformed in 1995, 2013, 2019 and most recently in 2023 with the Right to Housing Law. The 2013 reform was the most relevant for vacation rental: art. 5 letter e) was introduced expressly excluding tourist rental from the LAU and referring it to autonomous-community regulation.

In practice, legal conflicts for hosts almost always arise from the boundary between art. 3 and art. 5: is a 4-month stay for work reasons a seasonal rental (art. 3) or a disguised tourist rental (art. 5)? The correct answer changes the minimum contract duration, tenant rights and owner obligations.

October 2026: RDL 29/2026 and seasonal lets

Quick answer

Since 8 October 2026, Royal Decree-law 29/2026 moves seasonal lets out of art. 3 and turns them into "temporary housing leases" (LAU arts. 2.3, 7.2 and 9 bis): a real, provable cause written into the contract, more than 31 days and, as a rule, no more than 12 months. It is in force, but Parliament must still convalidate it within 30 days; its predecessor, RDL 26/2026, was repealed on 2 October.

RDL 29/2026 (BOE-A-2026-20823, published on 7 October 2026) rewrites the LAU. Art. 3 no longer covers the "accommodation or lodging of persons": it now only covers premises and activities (industrial, commercial, professional, teaching, etc.). Renting out a dwelling for a limited time becomes a type of housing lease, the "temporary housing lease", which meets the housing need of someone temporarily away from their usual home for a justified and provable reason. The definition expressly includes renting a single room.

Seasonal contracts signed before 8 October 2026 keep their old regime (use other than dwelling) until the agreed end date and then expire without extension; if renewed, the new contract falls under the temporary-housing rules (LAU transitional provision 8).

  • Cause in the contract: it must be stated expressly and be real and provable, and the burden of proof lies with the landlord. Without a cause, the contract is treated as a primary-residence lease, retroactively from signature (art. 7.2).
  • Duration: more than 31 days and, as a rule, max. 12 months; extension only by express agreement and only while the cause persists (art. 9 bis.1).
  • Back-to-back contracts: more than 12 months without justification, or more than two consecutive temporary contracts between the same parties for the same dwelling, turn the first one into a primary-residence lease, with the minimum term and extensions of arts. 9 and 10 (art. 9 bis.2).
  • Rent: for successive temporary contracts on the same dwelling, the annual increase may not exceed the IRAV index (art. 17.8); for annual updates of housing leases falling due until 31-12-2027, absent a new agreement, the cap is 2% (final provision 6).
  • Rooms: the combined rent of rooms let at the same time may not exceed the rent for the whole dwelling (art. 17.9).
  • Guarantees: any guarantee on top of the deposit is capped at one month for temporary leases (two for primary residence), and the tenant can never be required to take out rent-default insurance (art. 36.5).
  • Early exit: a temporary tenant may leave after one month with ten days' notice, without compensation (art. 11.2).
  • Primary residence: at the tenant's request, an extraordinary extension of up to two years (in one-year steps) for leases whose mandatory or tacit extension ends before 31-12-2028, provided the rent is up to date (final provision 5).

The three regimes: practical comparison

Quick answer

The difference is purpose (live / work / tourist), duration (years / months / days), and applicable rule (LAU / LAU + regional / regional only). This table is the quick reference.

LAU art. 2 vs. art. 3 vs. art. 5 — the three regimes
AspectArt. 2 (primary residence)Seasonal (RDL 29/2026)Art. 5 (tourist)
PurposeLiving habitually and permanentlyTemporary housing need away from the usual home, for a justified and provable cause (work, study, health)Tourist use — vacation, leisure
Typical duration5 years (mandatory extension), 7 if landlord is a legal entityMore than 31 days and, as a rule, max. 12 months (art. 9 bis, since 8 Oct 2026)Days, weeks or few months
Mandatory extensionYes, up to legal limitNo; but >12 months without cause or >2 back-to-back contracts = primary residenceNot applicable — LAU does not apply
Tourist licenseNot requiredNot requiredMandatory (VV / VFT / VTAR per region)
Housing register entryVoluntaryVoluntaryMandatory in regions with tourist register
SES.HospedajesNo (exempt under LAU art. 2)Debatable — verifiableMandatory within 24 hours
Applicable ruleLAU integralSince 8 Oct 2026: LAU arts. 2.3, 7.2 and 9 bis (RDL 29/2026); older contracts: art. 3 until expiryRegional tourism regulation
Deposit1 month mandatoryContracts before 8 Oct 2026: 2 months (art. 36.1). New ones: a housing lease, so 1 month on a literal reading; extra guarantee max. 1 monthNot regulated by LAU

The 11-month contract after RDL 29/2026

Quick answer

With RDL 29/2026 the "11-month contract" is no longer a neutral format: a temporary contract only holds if it states in writing a real, provable reason for the tenant's stay, and the landlord must prove it. Without a cause it is treated as a primary-residence lease from signature. Duration was never the test, and now it is not enough either.

Until 7 October 2026, seasonal lets relied on LAU art. 3 ("use other than dwelling"), and 11 months was the usual term because it fits an academic year, a work assignment or a course of medical treatment. Since 8 October, new contracts of this kind are "temporary housing leases": the contract must name the cause (for example an employment contract with an end date in another city, a university enrolment or a medical treatment) and the general maximum is 12 months.

Supreme Court case law (including STS 20/03/2018) already looked at reality rather than paper: a tenant who signs 11 months but lives with their partner and child and works in the city is in a disguised primary-residence lease, and the contract is reclassified with all protections (extension up to 5 years, capped rent updates, etc.). RDL 29/2026 writes that test into the law and adds the limit of two consecutive temporary contracts with the same tenant.

When does the tourist regime (art. 5) apply?

Quick answer

When the property is offered on tourism platforms, promoted for vacation use, or includes typical hotel services (cleaning, sheets, 24h reception). Short duration alone is NOT a determining criterion.

Art. 5 LAU excludes from LAU scope "the temporary transfer of use of a fully-furnished and equipped dwelling in ready-to-use condition, marketed or promoted through tourism channels or by any other form of marketing or promotion, carried out for profit, when subject to a specific regime derived from tourism sectoral regulation".

Three criteria must coexist: furnished ready-to-use dwelling, tourist marketing (Airbnb, Booking, own website with "book" section), and subjection to autonomous-community vacation-rental regulation. Duration is not a criterion: a property listed on Airbnb with 30-night minimum is tourist by channel, even if the stay is long.

  • Listing on Airbnb / Booking / VRBO / similar: determining criterion for tourist use.
  • Own website with booking system and per-night price: determining criterion.
  • Hotel services (mid-stay cleaning, towel change, reception): reinforce tourist qualification.
  • Furnished dwelling ready for immediate use without tenant registration formality: strong indicator.
  • Per-night and not per-month payment: typical indicator.

Tensioned zones: the Law 12/2023 novelty

Quick answer

Law 12/2023 introduced the concept of "tensioned residential market zone". In those zones, LAU art. 2 contracts are subject to CPI ceiling and, for large landlords, to a price index. Regions declare zones; Catalonia was first.

For hosts who are not large landlords, the only practical novelty is the limit on annual rent increase on LAU art. 2 renewals. For large landlords, the tensioned zone additionally imposes a cap on new rents under the state index. Law 12/2023 art. 3.k defines a large landlord as a holder of more than 10 urban residential properties (or >1,500 m² built); that threshold can be lowered to 5+ properties only within a specific tensioned zone where the autonomous community expressly motivates it in its declaration.

Art. 5 (tourist) remains outside tensioned zones. Seasonal lets, however, are no longer separate: since RDL 29/2026, successive temporary contracts on the same dwelling cannot raise the rent above the IRAV index, and in a tensioned zone room rentals (or the whole-dwelling rent) must respect the limits of LAU art. 17.6-8. Convalidation pending; monitor the BOE.

What should a well-drafted LAU contract contain?

Quick answer

Party identification, property description with cadastral reference, express purpose (art. 2 / 3 / 5), duration, rent and payment terms, deposit, costs, jurisdiction clause and signature. For a seasonal (temporary housing) lease, the temporary cause must be written into the contract itself (mandatory since RDL 29/2026).

  • Landlord and tenant identification with NIE/DNI/passport.
  • Full property address + cadastral reference (mandatory in the fianza deposit registration with the regional authority since RDL 7/2019; strongly recommended in the contract itself).
  • Express citation of applicable LAU regime: "under art. 2 / 3 / 5 LAU".
  • For a temporary housing lease: the reason for the stay stated expressly in the contract and documented (employment contract with end date, university enrolment, etc.) — mandatory since RDL 29/2026.
  • Duration with start and end date, and tacit-renewal clause (where applicable).
  • Monthly rent + payment method + bank account.
  • Deposit: amount, deposit at regional authority (INCASOL in CAT, IBAVI in Balears, etc.).
  • Cost distribution: community fees, IBI, utilities, waste.
  • Jurisdiction and applicable law clause (always Spanish law).
  • Handwritten or advanced electronic signature.

Risks of mis-classification

Quick answer

Misclassifying a contract can be judicially reclassified and expose you to: forced 5-year extensions (if it was disguised art. 2), regional penalties for lacking tourist license (if it was disguised art. 5), and transfer tax for improper use.

Economic risk depends on the direction of error. Sign a seasonal lease (11 months) without a provable cause and the tenant claims the primary-residence regime: you're stuck with a contract of up to 5 years you didn't want, and since RDL 29/2026 with effect from signature. Sign art. 3 and the regional administration detects you operate tourism-style, you receive sanctions for lacking tourist license (in Catalonia, up to €600,000 per listing without HUT; in the Valencia Region, up to €600,000 since Decret-ley 9/2024).

Administrative verification is cross-referenced: SES.Hospedajes, platform registers (Airbnb / Booking submit data under RD 933), municipal inspectors in saturated zones. Opacity is no longer a viable strategy.

Frequently asked questions

Can I combine art. 3 and art. 5 in the same property?
Yes. It's common: winter with a seasonal tenant (temporary housing lease with a provable cause, 6-7 months) and summer with tourists (art. 5). The key is that each contract has its regime and that the property holds a tourist license for the art. 5 months.
If the tenant stays beyond the end of a seasonal contract, what happens?
It depends on the contract type and date. Under LAU art. 2 (primary residence), after the mandatory extension of art. 9 and if neither party gives timely notice, art. 10 provides automatic annual renewal for up to three years. Seasonal contracts signed before 8 October 2026 (art. 3) end on the agreed date with no possibility of extension (LAU transitional provision 8); if the tenant stays on, you must reclaim possession or sign a new contract, which will already be a temporary housing lease. For temporary housing leases signed since then, extension is only possible by express agreement while the cause persists and, as a rule, up to 12 months in total (art. 9 bis); more than 12 months without justification turns it into a primary-residence lease.
Is the deposit for a seasonal let one month or two?
It depends on the date. Seasonal contracts signed before 8 October 2026 remain leases for use other than dwelling: 2 months (LAU art. 36.1). Temporary housing leases signed since then are housing leases; RDL 29/2026 did not amend art. 36.1, which sets 1 month for housing, so confirm the amount with your region's deposit body. What the decree does fix is the extra guarantee: max. one month for temporary leases, and rent-default insurance can never be required.
Do I need to declare IRPF / IRNR for an art. 3 rental?
Yes, without exception. Rental income generates taxable income: IRPF for residents, IRNR (Modelo 210) for non-residents. LAU qualification is independent of tax qualification — a poorly-declared art. 3 can be fiscally pursued as harshly as an art. 5 without license.
How do I prove the temporary cause of a seasonal let during an inspection?
With documents dated before signature: an employment contract or posting letter with an end date, a university enrolment, a medical treatment plan, etc., plus the cause written into the contract itself. Since RDL 29/2026 the burden of proof expressly lies with the landlord (LAU art. 7.2): a generic statement by the tenant is not enough.

Sources

  1. Ley 29/1994 LAU Ley 29/1994, de 24 de noviembre, de Arrendamientos Urbanos (BOE-A-1994-26003) — texto consolidado
  2. Ley 12/2023 Ley 12/2023, de 24 de mayo, por el derecho a la vivienda (BOE-A-2023-12203)
  3. RDL 7/2019 Real Decreto-ley 7/2019, de 1 de marzo, de medidas urgentes en materia de vivienda y alquiler (BOE-A-2019-3108)
  4. RDL 29/2026 Real Decreto-ley 29/2026, de 6 de octubre, por el que se adoptan medidas urgentes para la protección de la función social de la vivienda y la ampliación de la oferta de vivienda asequible (BOE-A-2026-20823) — en vigor desde el 8-10-2026, pendiente de convalidación
  5. RDL 28/2026 Real Decreto-ley 28/2026, de 6 de octubre, por el que se adoptan medidas urgentes para reforzar la estabilidad de los contratos de arrendamiento de vivienda habitual (BOE-A-2026-20822) — entrada en vigor prevista el 15-11-2026, pendiente de convalidación

Key terms used in this article

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