What is the IRAV and when does it apply instead of the CPI?

The IRAV is the “Índice de Referencia para la Actualización Anual de los Contratos de Arrendamiento de Vivienda” (the reference index for the annual updating of residential tenancy agreements), which the “Instituto Nacional de Estadística” (INE), Spain's national statistics institute, has published every month since January 2025. It sets the maximum by which the rent under a residential tenancy that is already running can rise each year. If the agreement refers to the consumer price index (CPI) and the CPI is higher, the rent can only rise by as much as the IRAV allows, whereas if the CPI is lower, the CPI applies. The IRAV also replaces the CPI when the agreement provides for the rent to be updated without saying which index is to be used. In September 2026 it stood at 2,54 %, although until 31 December 2027 the increase cannot exceed 2 % without a new agreement.

Alburquerque Abogados

José Manuel Alburquerque
Landlord and tenant

When the IRAV applies and when the CPI does

  • If the agreement says that the rent will be updated in line with the CPI, the CPI applies, but without exceeding the IRAV. Since 8 October 2026, this ceiling has applied to all residential tenancies signed from 1995 onwards. Until then it only applied to those signed on or after 26 May 2023. Earlier ones were updated according to their clause, usually in line with the CPI.
  • If the agreement says that the rent will be updated, but not by which index, the IRAV applies.
  • If an agreement signed from June 2013 onwards says nothing about updating the rent, there is no increase, whether in line with the CPI or the IRAV.
  • Until 31 December 2027, without a new agreement, the increase cannot exceed 2 %. With an agreement, it cannot exceed the IRAV either.
  • For commercial premises and offices, whatever the agreement says applies. The IRAV is not binding on them.

The IRAV used is the latest one published on the anniversary of the tenancy. If the anniversary falls on 1 November 2026, the September figure applies, published by the INE on 14 October.

Three benchmarks that should not be confused

Three different benchmarks are used in renting, which are often mixed up:

  • The IRAV, which is used for the annual increase under a tenancy in force. It is not used to set the rent under a new tenancy.
  • The reference rent index, a system run by the “Ministerio de Vivienda”, Spain's Ministry of Housing, which gives each home a price range according to its location and characteristics. It is used to set the maximum rent under a new tenancy in stressed residential market areas (“zonas tensionadas”), those the public authorities declare because of rising rents, when the owner is a large-scale landlord (“gran tenedor”), as the law calls anyone who owns many homes. In Catalonia it also applies when the flat has not had a residential tenancy in the previous five years. In addition, until 31 December 2027 it prevents any increase in rents that exceed it.
  • The previous rent. In stressed residential market areas, the rent under a new tenancy cannot exceed the last rent paid for that home in the previous five years, as updated, except for an extra 10 % in specific cases laid down by law. It applies to any landlord.

Once the initial rent has been set within those limits, each annual increase follows the clause in the agreement, without exceeding the IRAV.

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.