Spain Caps Rent Increases at 2% Through 2027

Spain's government has launched a 5 billion euro emergency economic plan centered on a nationwide rent freeze and a strict 2 percent annual cap on rent increases, effective through the end of 2027.

The housing decree, Real Decreto-ley 8/2026, took effect March 22 and needed a vote in Congress within 30 days to stay in force. Tenants whose contracts reach the end of their mandatory extension period before the end of 2027 can request up to two more years on the same terms, and landlords must accept with limited exceptions. The government is also targeting "seasonal" contract loopholes and short-term rental arrangements commonly used to sidestep tenant protections.

Who This Affects

The regulations cover all residential rental contracts across Spain, including those held by expats and remote workers on the Digital Nomad Visa. Large landlords can't raise the rent by more than 2% at the annual update, and other landlords can agree a different update with the tenant but otherwise face the same 2% limit. Landlords who reclassify units as "room rentals" or seasonal lets to avoid the rules face heavy fines, while compliant landlords receive tax breaks to keep prices stable.

Tenants already renting in Spain have their increases capped at 2 percent for the next two years, regardless of any inflation clauses in the original contract.

Steps to Take Now

• Request the extension in writing if the contract's mandatory extension period ends before the end of 2027.
• Confirm income meets the Digital Nomad Visa threshold of €2,442 per month.
• Complete the empadronamiento at the local town hall to register as a local resident. This step is often overlooked and can affect access to services.
• Ask the municipality about any specific rules for working from a residential property, since rules vary by region.

The visa isn't worth pursuing for applicants whose income sits close to the minimum threshold and who haven't locked in a lease first.

Follow the parliamentary vote on the latest nomad news, and see the full breakdown of costs and requirements in our Spain guide.

Correction, Sept. 23, 2026: An earlier version of this article said the decree would take effect only after Congress ratified it, that extensions would be automatic, that contracts had to be registered for the cap to apply and that the Digital Nomad Visa income threshold was €2,762.66 a month. The decree had been in force since March 22, extensions required a tenant's request, the decree set no registration requirement and the threshold was €2,442 a month when this article was published.