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Millions of renters across Spain are facing potential rent increases this month as landlords gain the ability to raise monthly payments by up to 2.10%. It's not great news for tenants, but it's part of the government's attempt to keep rent increases under control while still allowing landlords to adjust their prices.

 

The 2.10% limit comes from the National Statistics Institute (INE), which now publishes a monthly figure that sets the maximum rent increase allowed. This applies to rental contracts signed after Spain's new housing law kicked in on May 25, 2023, so if you signed your lease before then, different rules might apply to you.

 

This is the eighth time the INE has published this rental reference index since it began operating in 2025.

 

Previous monthly limits have fluctuated slightly, with increases of 2.2% in November, 2.28% in December, 2.19% in January, 2.08% in February, 1.98% in March, 2.09% in April, 1.9% in May and 2.1% in June.

 

For tenants, this means that if you're paying €1,000 per month in rent, your landlord could increase it by up to €21, bringing your monthly payment to €1,021. Those paying €1,500 monthly could see their rent rise by a maximum of €31.50.

 

However, landlords can only apply this increase once per year and must provide written notice to tenants following the deadlines and conditions outlined in their rental contracts.

 

Previously, rent increases were linked to the CPI but when inflation soared following Russia's invasion of Ukraine, the Spanish government intervened in April 2022 to limit rent hikes to just 2%. This cap was later adjusted to 3% for 2024.

 

With the arrival of 2025, these temporary limits disappeared and the new reference index system took effect. The Housing Law established these price control measures specifically to prevent the disproportionate rent increases that were occurring due to high inflation rates.

 

The current rental increase limit of 2.10% is actually slightly below June's general inflation rate of 2.3%, which in theory should keep housing costs manageable.

 

For tenants currently facing rent reviews, it's important to remember that landlords must follow proper procedures when applying any increase. They must provide written notification and can only implement the increase once per year. The maximum increase allowed is determined by the month in which the rent review takes place, making timing an important factor in the process.

 

 

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