What is the 2 % cap on rent increases and how long does it last?

It is an extraordinary limit on the annual increase in rent under residential tenancies, set by Royal Decree-Law 29/2026 (the “Real Decreto-ley”), in force since 8 October 2026. It applies to increases falling due up to 31 December 2027 in all residential tenancies, whoever the landlord is and wherever the home is located. Without a new agreement, the rent cannot rise by more than 2 %, even if the agreement refers to the consumer price index (CPI) or to the IRAV, the index that the “INE”, Spain's national statistics institute, publishes for these increases. If the rent already exceeds the maximum value that the state reference rent system gives for the home, it cannot rise at all. From 1 January 2028 the clause in the agreement applies again, with the IRAV as the ceiling.

Alburquerque Abogados

José Manuel Alburquerque
Landlord and tenant

How it works

  • What counts is the anniversary of the tenancy, not the date of the notice. If the anniversary of your tenancy falls between 8 October 2026 and 31 December 2027, the cap applies to you.
  • It is a maximum. If the clause in the agreement gives less, the clause applies.
  • Tenant and landlord can agree on a different increase, but never above the IRAV, which stood at 2,54 % in September 2026. Anything above that would be void.
  • If the rent exceeds the maximum value given by the state reference rent system, which is run by the “Ministerio de Vivienda”, Spain's Ministry of Housing, no increase is possible, in principle not even an agreed one. But the cap does not require the rent to be lowered.
  • It does not matter whether or not the home is in a stressed residential market area (“zona tensionada”), one of those declared because of high rents, or whether the landlord owns many homes.
  • It does not apply to commercial premises or offices. For seasonal tenancies signed before 8 October 2026, different rules may apply.

For example, with a rent of 850 euros that does not exceed the maximum value under the state system and a tenancy whose anniversary is 1 March 2027, the maximum increase without a new agreement is 17 euros, that is, 2 %.

How long it lasts

It applies to increases falling due up to 31 December 2027. From 1 January 2028, the rent goes back to rising in line with the clause in the agreement, without exceeding the IRAV. Any increase lost because of the cap is not recovered later, because each increase applies the change over the last year to the rent being paid at that time.

It is not the first limit of this kind. Between 2022 and 2023 there was a 2 % cap and in 2024 a 3 % one. Since 2025, the ceiling has been the IRAV, which the INE publishes every month. Until 8 October 2026 it only applied to tenancies signed on or after 26 May 2023. Today it also applies to earlier ones, together with the 2 % cap.

This answer is provided for educational purposes and offers initial guidance on the question raised. Every matter has its own circumstances and nuances that require individual assessment. For that reason, before taking decisions with significant consequences, it is advisable to consult a professional and not to rely solely on this information. Personalised advice makes it possible to apply these explanations to the specific case and to assess the options available with greater certainty.