Spain limits annual rent increases to 2.29% under new IRAV rules

Spain’s Índice de Referencia de Arrendamientos de Vivienda now sets the ceiling for annual rent updates on qualifying homes, replacing CPI-only increases for contracts signed after May 26, 2023. The index is published by the National Statistics Institute and took effect Jan. 1, 2025.

The monthly rate is based on the lowest of CPI inflation, core inflation or a moderated average formula. For early 2025, INE put the figure at about 2.20% and it edged to 2.29% by November.

Who feels it most

Long-term tenants, including many expats and digital nomads on six-month-plus residential leases, face the cap directly. Landlords must give one month notice before any increase and can't go above the current IRAV limit, then a 2% hard cap applies under a March 2026 decree through Dec. 31, 2027.

Short-stay visitors are mostly outside the rule. Seasonal lets and room rentals are exempt from IRAV, though new leases in stressed zones can still be tied to official reference prices in parts of Madrid, Barcelona and other declared areas. More than 8 million people now live in those zones, according to official counts.

What tenants should check next

Tenants with a residential lease should confirm the contract date, the landlord type and whether the home sits in a stressed zone before any renewal notice arrives. The Ministry of Housing’s online tool and the INE calculator can show the reference rate landlords are allowed to use.

For broader policy changes, keep an eye on visa updates and local rent rules together. Read our full Spain guide for the complete picture.