In Madrid, landlords must legally deposit rental guarantees with the government housing agency. This agency is called IVIMA (Instituto de la Vivienda de Madrid). This guide explains how the system works and how to protect your money.
Landlord deposit obligations
When you sign a rental contract in Madrid, you must pay a fianza (security deposit) to the landlord. By law, the deposit is equal to 1 month of rent for residential apartments, and 2 months of rent for furnished or commercial properties.
The landlord cannot keep this money in their personal bank account. They must deposit it with the IVIMA within 30 business days of signing the contract.
If the landlord fails to deposit the money within this period, they can face fines from the regional government.
How the apartment deposit works
Why deposit registration matters to tenants
You need to make sure your landlord has registered the deposit for two main reasons.
- Tax deductions: The Comunidad de Madrid offers a tax deduction of up to 30% of your rent payments if you are under 35 years old and earn less than a specific limit. You cannot claim this tax deduction on your annual tax return unless your landlord has deposited your fianza with the IVIMA.
- Deposit protection: If the deposit is held by the IVIMA, it is protected from disputes. The landlord cannot easily withhold it without valid justification when you move out.
How to file a tax return in Spain
How to check if your deposit is registered
You can request a confirmation from the IVIMA to check if your landlord complied with the law. You can do this online using a digital certificate.
Steps to check deposit status online
- Access the online portal of the Comunidad de Madrid. Search for the “Consulta de depósito de fianzas para arrendatarios” service.
- Log in using your digital certificate or Cl@ve.
- Input your rental property address and the NIE or DNI of your landlord.
- Submit the request. The system will search the database and display the deposit status immediately.
- If the deposit is found, download the official justificante de depósito (proof of deposit) for your tax records.
How to get a Spanish digital certificate
How to get your deposit back
When your contract ends, you and the landlord must inspect the property and sign a termination agreement. This is called the documento de rescisión de contrato (contract cancellation document).
Document checklist for reclaiming deposit
- A copy of the signed rental contract
- A copy of your TIE or NIE card
- The signed termination agreement showing no damages
- Your Spanish bank account details (IBAN)
The landlord must request the refund of the fianza from the IVIMA online. Once the IVIMA approves the request, they return the money to the landlord, who must then transfer it to your bank account within 30 days of the contract termination.
If the landlord refuses to return your deposit without a valid reason, you can file a complaint with the IVIMA or start a legal claim.
How to move out of your apartment
Questions and answers
Can the landlord ask for more than 1 month of deposit?
Yes. While the legal fianza is limited to 1 month, landlords can ask for additional guarantees, such as an extra deposit (depósito adicional) or a bank guarantee. However, only the official 1-month fianza is deposited with the IVIMA.
What should I do if my landlord did not deposit the fianza?
File a complaint. You can submit an official complaint to the IVIMA. The agency will inspect the case and pressure the landlord to make the deposit. This is common when tenants want to claim their rental tax deduction.
Can the landlord deduct cleaning costs from the fianza?
Only if agreed. The landlord can only make deductions for damage beyond normal wear and tear. They must provide receipts for any repair or cleaning work they claim.
How long does the IVIMA take to return the money?
About 1 month. Once the landlord submits the refund request, the IVIMA usually transfers the funds to the landlord within 30 business days.
