One of the fears for expats moving to Madrid is arriving at their new apartment and finding the lights off.
Let’s debunk that myth first: In Madrid, utilities are rarely disconnected between tenants. The lights will be on when you arrive. The challenge isn't "connecting" them; it is properly transferring the contracts (Cambio de Titularidad) so you pay for exactly what you use, and nothing more.
If you are renting for the long term (12+ months), the rules are specific. Here is the PropXper guide to navigating bills, banking, and the new 2026 taxes.
1. The Golden Rule: Container vs. Content
To understand who pays for what in a standard Spanish long-term lease, visualize the apartment as a box.
- The Landlord pays for the "Container": This includes the IBI (Property Tax) and the Community Fees (Comunidad). These are costs associated with owning the property, regardless of who lives there.
- The Tenant pays for the "Consumption": If you use it, you pay for it. This includes Electricity, Gas, Water, and Internet.
The 2026 Update: The Waste Tax (Tasa de Residuos)
This year, a new "Urban Waste Tax" is being rolled out across Madrid. While the bill technically arrives in the owner's name, most new contracts in 2026 pass this cost on to the tenant. Since it is a tax on waste generation (consumption), this is standard market practice.
2. Why You Should Switch Contracts to Your Name
Some landlords (or agencies) will offer you a "Fixed Price" deal where you pay an extra €150-€200 per month, and they handle the bills.
Our advice: Avoid this.
While it seems convenient, you almost always overpay for the value you get. If you are budget-conscious or just prefer fairness, you want the bills in your name (Domiciliación).
- Transparency: You see exactly what you consume.
- Control: You can choose your own internet speed or electricity plan.
3. The Exceptions (When "Included" is Okay)
There are two scenarios where you cannot put the bill in your name. In these cases, you must demand transparency.
- Central Heating (Calefacción Central): In older buildings, the heating is often communal. If the building hasn't installed individual meters yet (which is legally required but not yet universal), the heating cost is included in the Community Fee. In this case, the landlord pays it.
- Communal Water: Similar to heating, some buildings divide the water bill by the number of neighbors (share coefficient) rather than by usage. This is usually paid by the owner.
The "Receipt Rule": If the landlord charges you for consumption via the Community Fee, they must provide the official Community Receipt. This receipt should clearly label the specific line items for "Water" or "Heating." Never pay a vague "Utilities Fee" without seeing the breakdown.
4. The Critical Document: The "Last Invoice"
Before you try to change anything, you need one piece of paper from the landlord: The Last Invoice (Última Factura) for Gas and Electricity.
You cannot switch the contract without it. You will need three specific numbers found on this document:
- The Contract Number (Número de Contrato)
- The CUP (Codigo Universal del Punto de Suministro)
- The Owner's ID (NIF/DNI del Titular)
PropXper Tip: Ask for this before you sign the lease or at the key handover. Chasing a landlord for a PDF three weeks after you move in is a headache you don't need.
5. The "Chicken & Egg" Problem: Banking & Phone
So, you want to put the electricity in your name. To do that, you will need a Spanish phone number and a Spanish IBAN.
This is a step that is easy to get stuck on and should be taken care of sooner rather than later.
The Banking Reality
In theory, EU law says utility companies must accept any European IBAN (like N26 Germany or Revolut). In practice, their legacy systems often reject foreign IBANs, causing errors and failed payments.
The Solution: Open a Spanish account.
- The Banks: Sabadell, BBVA, and Santander are generally the most expat-friendly. They allow you to open an account with your passport (before you get your residency card/TIE).
- The Catch: You almost always need to visit the branch physically to finalize the setup.
- PropXper Tip: It can be tricky to find a branch manager who speaks English and understands the "Passport Setup" process. If you are a client, let us know. We can introduce you to our trusted contacts at Sabadell who are used to working with our international clients.
The Phone Hack
You can't order fiber internet without a Spanish mobile number (+34).
- Short-term fix: Buy a Prepaid SIM card (Vodafone, Orange, or Movistar) the day you arrive. It costs ~€15.
- Long-term fix: Use that number to open your bank account and internet contract. You can convert it to a contract later.
6. Setting Up Internet
Madrid has incredible fiber optic infrastructure. You can easily get 600Mbps or 1Gbps speeds, even in historic neighborhoods.
Option A: The "Easy Online" Route (Requires Spanish Phone) If you already have a Spanish mobile number, you can order Fiber Internet online from companies like Movistar or Digi. It is fast, and you can track the technician's arrival.
Option B: The "Physical Store" Route (No Phone Needed) If you just arrived and don't have a Spanish number yet, you don't need to wait.
- Go to a physical Movistar store. Note: Be careful, not every store will let you set this up with your passport only.
- Bring your Passport and your new Lease Agreement (Contrato de Alquiler).
- They can set up the Fiber Internet contract using just the Address.
- Bonus: They can often sell you a prepaid SIM card on the spot, solving your "Spanish Phone" problem for the Gas/Electricity setup.
Which provider?
- Movistar: The gold standard. Highest reliability, best coverage, but slightly more expensive.
- Digi: The popular alternative. Runs on Movistar’s network (mostly), cheaper, but customer service is leaner.
Crucial Tip: Before the technician arrives, ask your landlord where the "RITI" (Communications Room) is located in the building. The technician may need a key to access this room to connect your line. If you don't have the key, they will leave, and you will have to reschedule.
Moving to Madrid? Don't let the logistics distract you from the excitement. At PropXper, we manage the heavy lifting. From finding the perfect apartment to facilitating your utility setup, so you can land softly and start enjoying the city. Contact us to discuss your move.