Spanish rent rises capped at 2.49% for July as official index tracks below inflation

The figure represents a slight rise from June’s 2.44% rate, bringing the index close to its highest level this year.

Despite the slight increase, rent controls continue to insulate households from broader cost-of-living pressures. With overall inflation accelerating due to surging fuel prices, the July rent cap sits 1.11 percentage points below the general Consumer Prices Index (CPI).

For a tenant paying €1,000 a month, the maximum permitted increase is €24.90, bringing the new monthly total to €1,024.90. The 2.49% figure acts as a legal ceiling rather than a mandatory rate hike, meaning landlords can choose to apply smaller increases.

The index has fluctuated throughout 2026. After starting the year at 2.14% in January, it rose to 2.47% in March before dipping to 2.4% in April and 2.44% in June.

Created under national housing legislation, the IRAV limits annual rent adjustments by calculating a formula based on core CPI, standard CPI, and adjusted rate changes. By law, the system uses the lowest resulting value to prevent runaway price spikes.

The cap applies only to tenancy agreements signed after the housing law took effect on 25 May 2023. Older contracts remain governed by their original terms, which may still link rent reviews directly to the standard CPI or other financial indices.

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