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

How an increase works

During the contract, rent is only updated if the contract expressly allows it (art. 18 LAU) — a rule for contracts signed since 1 April 2015; earlier contracts keep the previous wording, under which CPI indexation applied even without an express clause. The other ground is an increase for improvement works (art. 19 LAU): after five years of the contract (seven if the landlord is a legal entity), unless the contract excludes it, the landlord may raise the annual rent by at most 20% under the statutory formula, notifying you in writing with the calculation and copies of the documents showing the cost of the works; by agreement with you, improvements and an increase are possible at any time. Those periods and the agreement rule apply to contracts signed on or after 6 March 2019; contracts signed between 6 June 2013 and 5 March 2019 keep the previous wording — three years and no such rule; those signed before 6 June 2013, five years and likewise no such rule; contracts signed between 19 December 2018 and 23 January 2019 already follow the current rules. The works must go beyond the ordinary upkeep the landlord already owes.

Check the increase

An update is at most once a year, on the contract anniversary, by the contract’s index — or, for contracts signed from 1 April 2015, the IGC if the clause names none (art. 18.1 LAU); earlier contracts default to the IPC.

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 (or, for contracts from 1 April 2015, the IGC if none is named; earlier contracts default to the IPC) 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 updated mid-year or raised without written notice.
• Those raised above the cap/index.
• The rules on residential leases apply regardless of the tenant’s nationality.

When an increase is legal — check your contract date first

• Below are the marks of a lawful annual update; an increase for improvements is checked against art. 19 LAU (see above).
• For an annual update under a contract signed since 1 April 2015 — there is an express clause providing for it (if it names no index, the IGC applies; earlier contracts are indexed to the CPI even without one); for an increase for improvements — the conditions of art. 19 LAU are met.
• The notice came in writing, stating the percentage applied (a note on the previous month’s rent receipt is valid); the INE certificate must be attached if you ask for it. The new amount is due from the month after the notice.
• 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 (if the update clause names none: the IGC for contracts signed from 1 April 2015, the IPC by default for earlier ones), 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 (if the update clause names none, the IGC applies).
• The update is once a year, on the anniversary; not backdated. An increase for improvements applies from the month after the works end and you receive written notice with the calculation and copies of the cost documents (art. 19.3 LAU).
• In zonas tensionadas the extra limits are respected.

Deadlines

• An update applies from the contract anniversary and only going forward — the new amount is due from the month after written notice (art. 18.2 LAU); an increase for improvements applies from the month after the works end and you receive written notice with the calculation and copies of the cost documents (art. 19.3 LAU).
• 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.
• For an update, compare the percentage with the applicable cap/index (IRAV, IPC or IGC); for an increase for improvements, with the 20% limit and the calculation under art. 19.1 LAU.
• 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 update 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