Landlords updating residential rents in September 2026 face different limits depending on when the tenancy agreement was signed, with increases capped at 2.49% for newer contracts and up to 3.6% for certain older agreements.
Spain’s rules governing annual rent increases continue to create two distinct regimes for landlords and tenants.
According to the latest guidance from consumer organisation OCU, residential tenancy agreements being updated in September 2026 are subject to either the new Índice de Referencia de Arrendamientos de Vivienda (IRAV) or the Consumer Price Index (IPC), depending on the date the contract was signed.
For landlords in markets such as Mallorca, Marbella, Madrid and Barcelona, understanding that distinction is becoming increasingly important.
The Key Date: 26 May 2023
The applicable limit depends primarily on whether the residential rental contract was signed before or after Spain’s Housing Law came into force.
For contracts signed from 26 May 2023 onwards, the maximum reference for a September 2026 annual rent update is:
IRAV: 2.49%
For contracts signed up to 25 May 2023, the applicable reference can instead be:
IPC: 3.6%
However, these increases are not automatically available to every landlord. The tenancy agreement must contain a provision allowing for an annual rent update.
If the contract does not provide for annual indexation, the rent cannot simply be increased using these percentages.
What Does That Mean in Euros?
For a monthly rent of €2,000, a 2.49% increase would represent an additional €49.80 per month, taking the new rent to approximately €2,049.80.
At 3.6%, the same €2,000 monthly rent could rise by €72, bringing it to €2,072 per month, where the CPI-based update is applicable.
On higher-value rental properties, particularly in premium markets such as Mallorca, even the difference between the two indices can become significant over a full year.
Why Are There Two Different Limits?
Spain introduced the IRAV following the 2023 Housing Law as a new reference designed to limit disproportionate annual increases in residential rents.
Since 2025, contracts signed following the introduction of the Housing Law have generally been updated according to this index.
Older contracts remain subject to the previous system, under which the IPC can act as the maximum reference for annual updates.
The result
