If the landlord does not return the deposit a month after handing over the keys, the tenant can claim the money with interest. A reform from October 2026 strengthens protection against deductions for damages.
According to madridinforma.es, when a rental ends in Madrid and the landlord does not return the deposit, the tenant can claim the amount owed. Article 36 of the Urban Leasing Law (LAU) states that the outstanding balance generates interest if more than one month has passed since the keys were handed over.
The mandatory deposit is equivalent to one month's rent. According to the Community of Madrid, the landlord must return the amount within the month following the end of the contract and the handover of the keys. If they do not, the balance starts to generate legal interest, which in 2026 is 3.25% per annum according to the Bank of Spain. This interest is not applied as a fixed surcharge for each month of delay: it is calculated on the outstanding amount for the time it remains unpaid.
The landlord can only deduct amounts justified by damages attributable to the tenant, outstanding rent, or utilities that were to be paid. They cannot keep the entire deposit for painting or replacing old elements and must distinguish between misuse and wear and tear over time.
Since October 8, 2026, the Royal Decree-Law 29/2026 is in force, which requires signing a document regarding the condition of the property at the end of the rental. If it is not signed or damages are not noted, it is presumed that the property was handed over in good condition, unless proven otherwise. Therefore, it is advisable to keep photographs, inventories, and communications of the handover.
To claim, the first step is to request the return from the landlord in writing. If they allege damages or debts, the tenant can demand a breakdown of the amounts withheld and the supporting documents. The usual procedure is as follows:
1. Gather evidence: contract, proof of the deposit, termination document, photographs, and receipts.
2. Send a burofax with content certification and acknowledgment of receipt, which certifies what is claimed and its receipt.
3. Attempt a documented negotiation, a requirement that the Organic Law 1/2025 generally demands before a civil lawsuit. A simple demand for payment is not always sufficient.
4. File a lawsuit if there is no agreement. Claims of up to 15,000 euros can be processed through verbal proceedings. When the amount does not exceed 2,000 euros, it is not mandatory to go with a lawyer and procurator.
Consumer offices do not process disputes between individuals; they can only intervene if the landlord acts as a business or professional. In the Community of Madrid, the landlord must deposit the deposit with the Social Housing Agency within 30 working days after signing the contract. At the end of the rental, they can request the refund of the deposit using form 254 within five years, but this period does not allow them to delay the return to the former tenant.
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