Letting agency fees in Spain: why the landlord pays

What article 20.2 says

The paragraph has three parts:

1. The ban. Costs of managing the property and of formalising the contract cannot be charged to the tenant, “ni directa ni indirectamente”.
2. The definition. These are “cualquiera derivado de servicios prestados para la preparación, formalización, gestión, novación o renovación del contrato de arrendamiento”, in other words anything arising from services provided to prepare, formalise, manage, amend or renew the lease.
3. The exception. Any other service that is not essential for concluding the lease can be charged to the tenant only if the tenant asked for it expressly in writing, after being told beforehand that it is optional and what it costs.

Because the ban covers renewal and amendment as well as signing, an agency cannot reintroduce a fee by calling it a “renewal charge” or “management fee”.

How the rule developed

Law 12/2023 on housing, in force from 26 May 2023, had already rewritten article 20.1 of the tenancy law to say: “Los gastos de gestión inmobiliaria y los de formalización del contrato serán a cargo del arrendador” (property-management and contract-formalisation expenses are borne by the landlord). The text read names no category of landlord. What changed in October 2026 is the form: article 20.2 now bars passing those costs on to the tenant “directly or indirectly”, defines them broadly, and adds the written-request rule for optional services. If an agency says the ban “only applies to big landlords”, ask it to cite the article and version it relies on. The consolidated BOE page lists the amendment history and dates.

What you can still be charged

Article 20 does not mean a tenant pays only rent. The law allows:

• Service charges, by written agreement. The landlord and tenant may agree that general expenses for the upkeep of the building which cannot be individualised are paid by the tenant. For validity the agreement must be in writing and state the annual amount at the date of the contract (article 20.1). In a community of owners, the share is the one that matches the property’s participation quota. In a building without a community, community expenses cannot be charged to the tenant.
• Metered supplies, such as water or electricity measured by an individual meter, which are in all cases for the tenant (article 20.4).
• Optional services you requested in writing, as described above.
• The deposit and the additional guarantee, covered in the guide on the rental deposit.

Taxes linked to the home cannot be imposed on the tenant, unless the tenant is the taxpayer (article 20.1). For the first five years (seven for a company landlord) the service-charge amount may rise only by agreement and by no more than twice the percentage by which the rent can rise under article 18.1 (article 20.3).

What an agency may do for its client

The prohibition concerns what is passed to the tenant. It does not stop a landlord from hiring an agency and paying its fee out of the rent received. It also does not stop the agency charging the landlord for finding a tenant. What the consolidated article does not clearly say, and what this guide has not found in the texts read, is how it applies when a tenant independently hires their own agent to search for a home. If you are in that situation, ask a lawyer how article 20.2’s wording (“preparación, formalización, gestión”) would be read for the service you contracted.

Advertising rules that came with the decree-law

RDL 29/2026 (article 20; in force since 8 October 2026, subject to validation by the Cortes) also says that any rental offer or advertisement must include, at least, the reference rent index if the property is in a stressed housing market area, the applicable rent limit where a limit applies, the identifying number of the unit where relevant, and the landlord’s status as a large holder where relevant. That helps you see the real figures before you meet an agent. The stressed-area rules are explained in the guide on stressed housing market areas.

If you were charged

Practical steps, which are procedure and not legal advice:

1. Keep the contract, the invoice or receipt and the agency’s pre-contract information.
2. Check the date of signing. The text read is in force from 8 October 2026; whether it applies to a contract signed earlier was not examined, and the transitional provisions of the decree-law should be read for that.
3. Write to the agency and the landlord asking for the amount to be returned, citing article 20.2 LAU.
4. If there is no answer, your regional consumer office or a court are the usual routes. Sanctions for charging prohibited fees were not read here and may differ by region.

Other charges that are limited

Besides fees, the LAU limits what a landlord can demand at the start: no more than one month of rent in advance (article 17.2). The landlord must give a receipt for payments unless the payment method itself proves that the tenant paid (article 17.4). Payment by electronic means is the rule; cash is allowed only if a party lacks a bank account or electronic access and asks for it (article 17.3).

Which professional to consult

If an agency refuses to refund an unlawful fee, a lawyer registered with a Spanish bar association (colegio de abogados) can write the demand letter. A licensed estate agent can explain what services they offer to the landlord; for how agents work in Spain see real estate agents.