Cancel a Rental Agreement as Tenant, the Correct Way to Do It?

Assuming you have a rental agreement that started after June 2013, when the new Ley de Arrendamientos Urbanos came into force.

If you have already passed the first 6 months of your rental agreement, there is no legal obligation to stay.
You are free to terminate the contract, would advise to do so by certified letter or even burofax, giving notice with at least one month. You could also use email, if so agreed and meeting the legal requisites as outlined in THIS TOPIC.
Whether or not you would have to pay the landlord any indemnization for early termination of the contract, depends on whether your rental agreement contains a clause to this end.

The landlord should return your deposit ultimately 30 days after the rental contract has ended, so he can deduct the final utility bills. Any other costs, repairs for damages etc. have to be documented to be able to be deducted from the deposit. And of course, communicated to the tenant upon the final inspection of the property.

Further info on rental deposits, where they should be held etc. HERE

If you are in doubt whether the landlord would fulfil his obligations to return you the deposit (assuming you paid one month´s rent as deposit), would advise to obtain his permission to forego the last month´s rent and for him to use the deposit to cover that instead.

Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.