Spain’s latest housing decree caps rent increases for thousands of households, with an official index setting limits through at least the end of 2027. The government says the measures aim to slow rising prices and give renters more stability, while leaving little room for negotiation.
Whether a landlord can raise the rent before 2028 depends on how the current payment compares with the government’s reference price for the home. If a tenant already pays more than the official maximum for the area and property type, the rent is frozen until at least the end of 2027 unless both parties agree otherwise. For everyone else, the annual increase is capped at 2 percent unless both sides sign a separate agreement. Several Spanish media outlets report that the cap applies broadly.
For rental contracts signed after May 26, 2023, annual updates are tied to the IRAV index calculated by Spain’s National Statistics Institute (INE). It replaces the previous reliance on the general inflation rate (IPC).
The 2 percent annual cap applies to contracts covered by the 1994 Urban Leases Law (LAU), whether the home is in a “stressed area” or not. The only exception is a separate, clear agreement between tenant and owner. For contracts signed before the cutoff, the old system based on the IPC may still apply if the contract says so. The Ministry of Housing has outlined these details.
How the index works
The Reference Index for Rental Prices is now the basic tool for setting rent limits. It calculates a price range per square meter based on the home’s location and features, including whether it is furnished and whether it has an elevator, parking, a pool or a gym. Until now, the index capped rents only in high-pressure markets. It now sets the standard for annual rent updates across Spain. INE reports that the latest IRAV index, for August 2026, was 2.47 percent, below the general inflation rate (IPC) of 4.3 percent for the same month.
Tenants can check their rent through the Ministry of Housing’s online portal at serpavi.mivau.gob.es. After entering an address or cadastral reference, they provide details such as the energy certificate, year built, floor and amenities. The system returns a personalized price range for the property, which can be downloaded for negotiations or disputes. The index is tied to the national rental price registry (Serpavi), so calculations use the latest location-specific data.
In so-called “stressed market zones,” landlords with 10 or more properties face stricter rules. The starting rent is capped by the Ministry of Housing’s benchmark system, while subsequent increases are limited by the IRAV index, information from official government sources.
Real-life impact
María pays €800 for a furnished flat in Carabanchel, Madrid, without an elevator or parking. The index puts the rent between €455 and €628, so she is already paying above the range. Her landlord cannot raise the rent unless both agree.
Juan, in Coslada, pays €1,100 for a seventh-floor apartment with an elevator. The index range is €593 to €731, so his rent cannot increase. Laura, in Getafe, pays €900 for a flat that should cost no more than €651; her rent is frozen too.
Guillermo, in central Guadalajara, pays €660 for a flat with a maximum indexed price of €879. His landlord could raise the rent, but only by 2 percent: about €13 more, bringing the monthly payment to €673.20. They could agree on a different figure, but only if both sign off.
What tenants need to know
For renters, unchecked annual increases are over, at least until 2028. The government’s index sets the limits: rents above the index are frozen, while other increases are capped. The only exceptions are clear, mutual agreements between tenant and owner. Several Spanish news outlets report that the measures will have a wide impact. The stated goal is to keep inflation in check in the housing sector.
The rules are part of a broader package that extends rental contracts and bans evictions for vulnerable tenants. The new index is expected to affect household budgets first, especially in cities where rents have risen far above official guidelines.
The government is tying rent updates to a data-driven system designed to provide stability for tenants and predictability for landlords. Its effect on overheated markets and existing inequalities remains uncertain.
