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Limit rent increases

Real Estate Law

Rents cannot be raised by more than 2% in 2023

The law allows rents to be updated annually. Generally the most used index for this purpose is the IPC , the inflation index. Due to the war and the general rise in prices, inflation is skyrocketing.

In order to prevent tenants from having to pay large increases in their rents, the government has decided to temporarily limit this increase to no more than 2% from April 2022 until the end of December 2023 through what is known as the “War Response Shock Plan“. This 2% limit has been decided on the basis of the Competitiveness Guarantee Index, the average inflation rate of all the countries that use the euro.

• Limit of 2% rent increase
• Entry into force as of 1 April 2022
• Ends 31 December 2023
• Affects all tenants who have their rent reviewed during these months

This maximum 2% increase would be applied to the monthly rent already paid. For example, if we have a rent of 1,000 euros, the rent would be increased by 20 euros per month and we would start paying 1,020 euros.

If my rent has not been updated in 2022, can I have a 4% increase in 2023?

No. The rent limit is not “cumulative”, so if the landlord has not raised the rent in 2022, he cannot accumulate the increase of 2022 and 2023 in the next update, but the maximum increase will be 2%, regardless of whether or not it was updated in 2022.

What happens if I have to update my rent after December 2023?

This measure will be in force until the end of 2023 (if there are no further extensions), so all 2023 contracts, those that are updated in their annuity, will be protected from rises due to this limit.

Can the landlord delay the rent update until the end of this limit?

No. The Law on Urban Leases stipulates that the rent must be updated every year after the contract expires. That is to say, if we sign the contract in June 2021, it must always be updated in June of each year (June 2022, June 2023…) and if it is signed in September, it must always be updated in September.



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