Can I Pay My Rent In Spain With Cash?

Spain's housing landscape underwent a transformative change on May 18th, 2023, with the enactment of the Ley de Vivienda, bringing significant implications for both tenants and landlords across the country. Among its many reforms, one clause that stirred considerable debate concerns the method of paying rent.

The law introduced a clear prohibition on tenants making rent payments in cash. Instead, it mandates that rent must be paid "by electronic means," effectively outlawing the long-standing practice of paying in cash.

Bank transfers and other digital payment methods are now the only legally recognised options for settling rent. However, there are limited exceptions to this rule—such as when one of the parties lacks access to a bank account or cannot use electronic channels due to technological or logistical barriers.

This change made Spain the first eurozone country to formally prohibit cash-based rent payments, often referred to as "en metálico" in Spanish. While supporters of the law applaud the move as a tool to combat fraud and enhance transparency in the rental market, critics argue that it may infringe on consumer rights—especially for elderly tenants and those living in rural areas.

Alejandro Marín, a representative of the consumer watchdog OCU in Zaragoza, argued that the measure "limits the rights of consumers", particularly affecting vulnerable groups who already face challenges due to widespread bank branch closures and the shift toward digital banking.

Marín also raised concerns about a contradiction with the amendment to the Law for the Defence of Consumers and Users, passed in 2022, which allowed consumers to pay in cash. He stated that cash should not be treated as an inherently suspicious payment method, especially when legally permitted for transactions under €1,000.

In response, the Spanish government has defended the clause, stating that cashless rent payments will reduce fraud, improve tax compliance, and align with broader anti-money laundering goals. This is consistent with Spain's 2021 legislation that reduced the overall cash payment limit to €1,000.

Nevertheless, legal experts and consumer groups note a potential contradiction: under current financial regulations, rents under €1,000 can technically still be paid in cash. This has led to confusion over how the Housing Law’s electronic payment clause will be implemented and enforced in practice, particularly in 2025.

In conclusion, the Housing Law has triggered a major shift toward digital-only rent payments in Spain. While the move is aligned with anti-fraud and transparency goals, it remains controversial, particularly for older residents or those without access to banking infrastructure.

To learn more about the broader reforms introduced by the Housing Law, check out Spain’s new housing law.