Is your rental contract in Spain due to expire in the new year? If so, you could be facing significant rent hikes. Read on to find out how much your landlord is allowed to increase it by and the steps they need to take to make it legal.
Rents in Spain have been getting increasingly expensive, increasing by 9.9 percent since November 2024. In some areas, this spike is even higher.
The average rental price is now €14.6 per square metre, this works out as an average monthly cost of €1,120.
Based on data on the average salaries from job platform InfoJobs, and average rental housing prices from the Fotocasa Real Estate Index, Spaniards spent 47 percent of their wage on rent in 2024. This can reach up to a whopping 70 or 80 percent of their salary in some areas.
Previously rental prices were updated according to the Consumer Price Index (CPI), but any contracts signed after May 26th 2023 were updated using the new Housing Rental Reference Index (RAIV) instead, which was aimed to make increases less severe as it was more stable and lower than the CPI.
Despite this, as many as 1.6 million renters face increased rents as their contracts are due to come to end next year.Â
According to data from the Ministry of Consumer Affairs and the Tax Agency, 632,369 rental contracts were signed in 2021, and the vast majority will expire in 2026 once the legal five-year lease term set by law has passed.Â
This means tenants will be forced to negotiate and renew contracts at a higher cost, find somewhere else to live, or even face eviction if they can’t afford it.
This increase is estimated, on average, to be around €1,735 per year. But it can reach up to €4,615 in more strained regions like the Balearic Islands, according to data from the Ministry of Social Rights, Consumer Affairs and Agenda 2030.
This is because of the increases in the CPI, which was the law in force at the time.Â
READ ALSO: 1.6 million renters in Spain face eviction or price hikes in 2026
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If your contract predates May 2023, your rent increase in 2026 should not exceed the Consumer Price Index (CPI), which is around 3.1 percent. For example, if you currently pay €1,120, the rent could increase to a maximum of around €1,154.
Residents most affected by these rent increases are those in Madrid, Catalonia, Andalusia, and Valencia, as these regions have the highest number of contracts about to expire.
If you’re in this situation, you’re more than likely worrying about how you’re going to cover the extra cost of your rent next year.
So what can you do?
Firstly, it’s important that any increase must comply with the terms of the original contract. This means you should re-read your contract to find out if CPI or IRAV applies to rent updates.
According to the Urban Leases Law (LAU) a rent increase without prior notice or legal basis may be invalid.
It states that landlords are obligated to inform tenants of any rent increase at least 30 days in advance.
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If your landlord does not properly notify you in time, you can technically reject the increase and continue paying the same monthly rent until a valid agreement is reached between both parties.
It’s important to consult the official index on the Ministry of Housing and Urban Agenda website to verify the maximum percentage increase allowed.
If the proposed amount exceeds the legal limit you also have the right to refuse it and can seek legal advice or contact a tenant advocacy service to help your case.
Negotiate with your landlord wherever possible to try and come to a fair agreement.
If you still feel like you will struggle to pay the increase, find out about aid and subsidies in your area that may be able to help. You can also look into social housing or affordable rental programmes.
If this still doesn’t work and you really don’t think you will be able to afford a higher rent, it may be time to start looking at other alternatives.Â