How long does a standard residential tenancy agreement last under the current LAU

What the LAU says about the length of a residential tenancy

If you want to know how long a standard residential tenancy agreement lasts, the correct answer is not a single fixed figure, but a combination of the initial agreement and statutory extensions. The Urban Leases Act allows the parties to agree the term of the contract, but that freedom is limited by mandatory minimums when the letting is for a primary residence.

The key rule is set out in article 9.1 of the LAU. In the text in force on 2 November 2026, the law states verbatim: “**The term of the lease shall be freely agreed by the parties. If this is less than five years, or less than seven years if the landlord is a legal entity, when the contract expires, it shall be mandatorily extended by yearly periods until the lease reaches a minimum duration of five years, or seven years if the landlord is a legal entity**”. You can see this in the consolidated LAU published by the BOE.

That means the actual duration of the contract depends not only on what the first clause says, but also on whether the landlord is a natural person or a legal entity.

Initial term: what the parties may agree

The contract may set an initial term freely agreed by the parties. However, if that initial term is below the legal minimum, the law imposes mandatory extensions until that protection threshold is reached.

1. If the landlord is a **natural person**, the contract must last at least **five years**.

2. If the landlord is a **legal entity**, the legal minimum rises to **seven years**.

3. If no term was stated in the contract, or it was indefinite, the LAU treats the lease as being for one year, “**without prejudice to the tenant's right to yearly extension**”, according to article 9.2 itself.

There is an important practical point: the calculation “**shall begin to run from the date of the contract or from the date on which the property is made available to the tenant if this is later**”. This avoids confusion when the signing and the handover of the home do not coincide.

Mandatory extension and tacit extension: how they link together

To understand properly how long the contract lasts, it is worth separating two phases:

### 1) Mandatory extension up to the legal minimum

If the agreed term is less than five or seven years, the contract is extended by yearly periods on a mandatory basis until it reaches that minimum. During that stage, the landlord cannot end the relationship simply because the agreed term has expired, unless a very specific legal exception applies.

### 2) Tacit extension after the legal minimum

Once five years or seven years have been reached, if neither party says that it does not want to renew, article 10.1 comes into play. The law provides that, if the term expires and no notice has been given in time, “**the contract shall be mandatorily extended by yearly periods for a maximum of three more years**”.

In practice, this means a residential tenancy may last:

- the initial agreed term,

- plus the mandatory extensions up to the legal minimum,

- plus the tacit extension of up to three additional years,

- unless either party gives valid notice or a legal ground for termination arises.

Important exceptions: when the tenancy may not continue

The general duration does not cover every possibility. There are exceptions you should review if you are signing or managing a contract.

### If the landlord is a natural person and needs the property

Article 9.3 allows that, once the first year has passed, the mandatory extension may not apply if the contract expressly stated the landlord's need to recover the property for themselves or certain family members, and always with the prior notice required by law. This exception is not generally available; it must have been agreed and notified in accordance with the legal requirements.

### If there is notice of non-renewal

Article 10 requires notices to be given in advance to avoid tacit extension. In the text in force on 2 November 2026, notice must be given “**at least four months in advance**” by the landlord and “**at least two months in advance**” by the tenant. If the tenant wishes to leave at the end of a yearly period within the tacit extension, one month's notice is enough.

### If there are situations of vulnerability or a pressured area

The current wording includes extraordinary extensions in certain cases. In addition, article 10 itself announces an amendment with future effect from 15 November 2026. As you have asked for verification as at 2 November 2026, that future wording is not yet applicable on that date, but it is worth noting that the matter may change if the contract is reviewed after that entry into force.

How to calculate the length of your contract: practical steps

1. **Check the signing date and the date the property is handed over**. If they do not coincide, the calculation starts when the property is made available to the tenant.

2. **Check who the landlord is**. If it is a natural person, the legal minimum is different from that of a legal entity.

3. **See whether the initial term is below the legal minimum**. If it is, there will be mandatory yearly extensions until the minimum is reached.

4. **Find the notice of non-renewal**. If neither party gives notice in time, the contract enters tacit extension.

5. **Read the landlord-need clause**. It only works if it is correctly agreed and notified.

Common mistakes to avoid

- Thinking the contract always ends on the date written on the first page.

- Confusing mandatory extension with tacit extension.

- Failing to distinguish between a natural person landlord and a legal entity landlord.

- Assuming a verbal communication is valid to prevent renewal.

- Forgetting that the start of the term may be the handover of the keys and not necessarily the signing.

What you should check before signing

If you are going to rent or sign as the owner, check these three matters especially carefully:

- The exact date when the calculation starts.

- The legal identity of the landlord.

- The duration clause, notice periods and any grounds for non-renewal.

If you would like an indicative review of your specific case, you can use our online property valuation in Madrid, which includes an estimated range and PDF report, with an optional visit. And if you would prefer us to review your contract or your tenancy situation individually, you can write to us via contact.

This guide provides general guidance, not individual legal advice. In already signed contracts, the exact wording and communication dates can completely change the practical outcome.