When and how to deposit the rental security deposit with IBAVI

If you are a property owner and plan to rent out your home, you should know that it is mandatory to deposit the rental security deposit with IBAVI (Balearic Housing Institute). In the Balearic Islands, this procedure forms part of the landlord’s legal obligations.

Is it mandatory to deposit the security deposit for a rental in Menorca?

Yes. In the Balearic Islands, the owner must pay the contract’s security deposit into IBAVI. This obligation applies to:

Primary residences

Commercial premises and offices

Seasonal contracts under the Urban Leases Act (LAU)

The responsible party is always the landlord, although management can be delegated to a real estate agency.

Is the deposit required for tourist rentals?
No, this obligation applies to rental agreements regulated by the Urban Leases Act (LAU), not to tourist rentals.

When must it be deposited?

The deadline is 30 days from the signing of the contract.

How much must be deposited?

1 month’s rent for residential leases

2 months’ rent for non-residential use (premises, offices…)

The deposit remains officially lodged until the end of the contract.

How to deposit the security deposit with IBAVI

The procedure can be completed online or in person.

Basic steps:

1. Submit the contract and the details of the landlord and tenant.
2. Generate the payment form.
3. Make the payment and keep the receipt.

What happens at the end of the contract?

The landlord requests the refund from IBAVI.
If there are no debts or damages, the deposited amount is returned and settled with the tenant.

What happens if the deposit is not lodged?

Failing to deposit the security deposit with the Balearic Housing Institute may result in:

Financial penalties

Surcharges

Legal difficulties in case of dispute

Depositing the security deposit in Menorca: an obligation that provides security

Complying with the requirement to deposit the rental security deposit with IBAVI in Menorca protects both landlord and tenant and ensures that the contract complies with Balearic regulations.

At Som Menorca we advise property owners on the comprehensive management of their rentals, including deposit handling and administrative procedures.

If you need help managing your rental in Menorca, we will be happy to assist you.