How much can my commercial rent be increased each year? Does the CPI or the IRAV apply?

Question

José Manuel Alburquerque · Accepted Answer

Whatever your lease says, because the law sets no increase and no cap for commercial premises. The most common arrangement is to agree on the consumer price index (CPI), but a fixed percentage, a rent that rises in steps or a periodic review to market rent are also valid. The IRAV, the index published by the “Instituto Nacional de Estadística” (Spain's national statistics office) for residential tenancies, is not compulsory for commercial premises, nor is the extraordinary 2 % cap. If the lease does not provide for any increase, the rent is not updated. What can be agreed The CPI, the consumer price index published every month by Spain's national statistics office. The clause should state which index applies and for which month, normally the general national CPI. For example, if the rent is 2.000 euros a month and the index for the agreed month rises by 3 %, the new rent is 2.060 euros. A fixed percentage each year or a stepped rent that rises on dates set in the lease. A periodic review to market rent, common in long leases, with experts if the parties cannot agree. The IRAV, if the parties prefer it. If the index falls, the rent can also fall, unless the lease says that it is only updated upwards. What applies only to homes For homes, the law does not allow increases to exceed the IRAV and, until 31 December 2027, limits them to 2 % unless there is a new agreement. None of this applies to commercial premises, not even after the reform of 8 October 2026. If the clause in a commercial lease says that the rent will be updated but not by which index, it will have to be interpreted, because the rule that applies the IRAV in that case is a residential rule. When the increase can be collected On the date set in the lease. If the lease requires prior notice, it must be given. According to the “Tribunal Supremo”, Spain's Supreme Court, the increase applies from when it is notified, not from when it could have been requested. If the landlord lets years go by without requesting it, he or she cannot later claim from you the extra that would have been collected in those years. If the review was requested in time and the other party challenges it in court, the new rent applies from the date set in the lease, not from the judgment. The difference arising from a notified increase that was not paid can, however, be claimed. In Catalonia, each monthly payment becomes time-barred after three years. Outside Catalonia, after five.