Rent increases in Spain: the IPC/IRAV cap and tenant rights

How an increase works

During the contract, rent is only increased if the contract expressly allows it (art. 18 LAU).

Check the increase

An increase is at most once a year, on the contract anniversary, by the agreed index.

The cap depends on the contract date: IRAV from 2025 for contracts after the Housing Law; older contracts use IPC/IGC under the contract and LAU.

2026: RDL 8/2026 introduced a temporary 2% ceiling from 22 March 2026, but Congress refused to validate it and the agreement derogating it was published in the BOE on 30 April 2026. The 2% ceiling does not apply to updates from that date — the ordinary LAU art. 18 rules and your contract’s index do. One question stays genuinely open: whether it is worth pursuing anything over an increase applied during the short window the 2% cap was in force. There is no settled answer — if that is your situation, consult a lawyer before acting.

In “stressed market areas” (zonas tensionadas) there are extra limits, including for new contracts.

Who this applies to

• Tenants of a home (vivienda habitual) with a live contract.
• Those whose rent was raised mid-year or without written notice.
• Those raised above the cap/index.
• Housing applies to all residents equally — nationality is irrelevant.

When an increase is legal — check your contract date first

• There is an express clause for an annual update by an index.
• The notice came in writing and in advance, stating the index and the calculation.
• The boundary date is 26 May 2023 (entry into force of the Housing Law, Ley 12/2023). Contract signed ON or AFTER it → annual updates follow the IRAV published monthly by the INE. Contract signed BEFORE it → the index your contract names, typically IPC, under LAU art. 18.
• IRAV is built to run below inflation spikes: the INE takes the LOWEST of three references (annual IPC, core IPC, an adjusted mean rate). Through mid-2026 it has hovered around 2.4–2.5% — always look up the exact month of your anniversary at the INE before accepting a figure.
• Worked example: contract signed August 2024, rent €900, anniversary August 2026 → the update uses the latest IRAV published before the anniversary (≈2.4% → up to ≈€921.60). The same contract updated by full IPC instead of IRAV would be an over-cap increase you can dispute. Contract signed in 2022 → IRAV does not apply; check what index the contract names.
• The increase is once a year, on the anniversary; not backdated.
• In zonas tensionadas the extra limits are respected.

Deadlines

• The increase applies from the contract anniversary and only going forward.
• Without written notice, an increase generally cannot be applied.
• Overpayment under an unlawful increase can be reclaimed — gather the evidence.
• Before court, a pre-court attempt (burofax, MASC) is often required.

Documents

• The tenancy contract with (or without) the update clause.
• The written notice of the increase and the calculation.
• Receipts/transfers before and after the increase.
• The index figures (IRAV/IPC) for the relevant date.

What to do

• Check whether the contract has an update clause and which index.
• Compare the percentage with the applicable cap/index (IRAV, IPC or IGC).
• If the increase is unlawful — pay the correct amount and state your position in writing.
• Send the landlord a burofax objecting and asking for the overpayment back.
• If refused — consumo or court; on a low income, justicia gratuita.

Common mistakes

• Paying the increase with no written notice.
• Thinking they can raise it by any percentage.
• Not checking the index (IRAV/IPC) and the ceiling.
• Accepting an increase more than once a year.
• Objecting verbally with no justificante — put it in writing.

If it was raised unlawfully

• An unlawful increase is not owed; pay the correct amount with a justification.
• A formal notice (burofax) objecting creates evidence and often resolves the dispute.
• Overpayment can be reclaimed through the proper channel.
• Keep every written proof (justificante) and file demands in writing on time.

Related guides

Key terms in this guide

Frequently asked questions

Official sources