If you rent a home in Spain, or you own one that is let, the question is how much the rent can go up each year. The short answer for 2026: the annual update is capped by the IRAV index, and the latest figure reported, for September 2026, is 2.54%, while general inflation (CPI) was 4.9%. A new decree, in force since 8 October and pending validation, adds a further limit of 2% in some cases. Below I explain how the update works, with examples you can reproduce, and what it means for owners and buyers on the Costa del Sol. Reviewed on 25 October 2026.
I am an agent, not a lawyer, so for a specific contract ask a lawyer or a property administrator to check the calculation. I also do not manage rentals, so this is the view of someone who advises buyers.
The IRAV: what it is
The IRAV (Índice de Referencia de Actualización de Viviendas en Alquiler) is a reference index published monthly by Spain’s statistics office (INE). Since 1 January 2025 it replaces the CPI as the basis for the annual update of main-residence leases. It does not apply to seasonal lets, room rentals or commercial premises.
In short, the index is built to be steadier than inflation, so that a spike in prices does not pass directly into rents. That is why, in September 2026, the IRAV (2.54%, the highest since the INE began publishing it in November 2024, as reported by the press) is far below the CPI (4.9%).
How much can the rent go up now?
It depends on the contract and on the new rules:
- Normal update: the contract’s annual update clause, limited by the IRAV published for the reference month. With the September 2026 figure, that is a ceiling of 2.54%.
- Royal Decree-Law 29/2026 (in force since 8 October 2026, pending validation by Congress): until 31 December 2027, if the rent is already above the reference limit there is no increase. Otherwise the increase is what the parties newly agree, and without agreement it cannot exceed 2%.
- New leases are generally set at market rent, except in declared tensioned areas, where limits apply.
Because the decree is not yet validated, I would work out both figures and check the status before you send or accept a notice. The wider rules are in Spain’s new rental law 2026.
Examples you can reproduce
Take a rent of €1,200 a month and an update at the September 2026 IRAV of 2.54%:
- €1,200 × 0.0254 = €30.48, so the new rent is €1,230.48.
- With the 2% limit: €1,200 × 0.02 = €24.00, so €1,224.00.
- €900 at 2.54% gives €922.86. €1,500 at 2.54% gives €1,538.10.
Use the index published for the month that your contract specifies, which may not be the latest one. You can check it on the INE website.
What the market is doing
The IRAV caps updates on existing leases. It does not cap market rents on new ones, and those have been rising. In my Costa del Sol market guide 2026, asking rents in Estepona were about €18.28/m² a month in 2025 (up 5.4%), and in Málaga city about €15.57/m² (up 10.2%, a record), with rents in Málaga growing 7.9% a year on average over five years. These are asking rents, not signed contracts, but they show why many owners feel an update capped at 2% or 2.54% is low. The data comes from Idealista, Tinsa and Engel & Völkers.
For tenants: how to check an increase
- Check your contract for an update clause. Without one, the rent should not be updated.
- Find the index the contract specifies and the month it refers to.
- Multiply the rent by the percentage and compare with the notice.
- Check that the notice is in writing and that it is not the second increase within the same year.
- If the figure looks wrong, ask the landlord for the calculation before paying the difference.
For landlords: how to update properly
- Put the index in the contract, written precisely, in every new lease.
- Send a written update with the calculation and the index used.
- Do not update more than once every twelve months.
- Be aware of tensioned areas and large-landlord rules. A large landlord is generally one with more than ten properties (five in a declared area).
- Keep the notices. If there is a dispute, the paper trail decides.
What it means for buyers and investors
When CPI runs above IRAV, as it does now, rents on existing leases lose ground in real terms. A long-term tenancy can therefore lag the market, and ending it costs more under the new decree. That is one reason I do not trust a yield figure that assumes rents rise with the market. If you are weighing a rental purchase, see buying a property in Spain to rent out, and compare models in tourist rental or traditional rental.
Frequently asked questions
What is the IRAV?
The reference index that sets the ceiling for the annual update of main-residence rents, published monthly by the INE.
What is the latest IRAV?
The press reported 2.54% for September 2026, published on 14 October 2026. Check the INE website for the current figure.
Does the IRAV apply to holiday or seasonal rentals?
No. It applies to main-residence leases.
Can the landlord raise the rent more than the IRAV?
Not through the annual update clause. On a new lease, the rent is set at market except in declared tensioned areas.
Thinking of buying to let on the Costa del Sol?
Tell me your budget and your plan and I will tell you honestly whether the numbers hold up once the rules and the updates are in. Contact me here, or see my properties for sale in Estepona.
Sources: Real Decreto-ley 29/2026 (BOE, 7 October 2026); INE IRAV and CPI data for September 2026 as reported by the press; Costa del Sol Property Market Guide 2026 (The Property Agent).
