Can my rent be increased every year? Complete Guide (2026)

1) Rule number one: it can only be updated if agreed

The annual update is not automatic. The landlord can only increase your rent during the contract if there is an update clause in the lease agreement. This rule is supported by the Urban Leases Law, which regulates rent updates in the article dedicated to this point.

Put simply: if your contract doesn't say anything about updates (no index, no "according to CPI", no "according to official index", or anything similar), the landlord cannot increase the rent every year while the contract is in force. They may do so when a new contract is signed if applicable, but not "mid-contract" without an agreement.

This point is fundamental because many people believe that the annual increase is an automatic right of the landlord, and it is not. The annual increase is a contractual agreement subject to rules. If the contract doesn't allow it, the annual update cannot be applied.

2) When can the rent be increased every year?

If your contract has an update clause, the increase normally applies on the anniversary of the contract, that is, when each year is completed from the signing date or the effective date. In practical terms, the update is applied once every 12 months maximum.

Rules worth remembering:

The update can only be applied if the contract allows it.

It applies on the date indicated by the contract or on its anniversary if no other date is specified.

The landlord must communicate the update for it to be applied correctly.

Furthermore, it's not enough to "say it verbally". It's ideal and recommended that there be written communication to avoid misunderstandings. And in some cases, notification can be considered valid even if made in the previous payment receipt itself, provided the new amount and calculation are clearly reflected.

3) The 3 basic conditions for the increase to be valid

If you want an easy-to-remember rule, here's the quick "check". For your rent to be increased every year, these three conditions must be met:

First, there must be a clause in the contract allowing the annual update. Second, it can only be applied once every 12 months, normally when the contract anniversary is reached. Third, the increase must respect legal limits and the applicable index in 2026.

If any of these three conditions fail, the increase is questionable or directly incorrect.

4) How much can my rent be increased in 2026?

Here comes the part of most interest: how much it can increase. And the answer is: it depends on your contract and the applicable regulations, but always within a legal limit.

In 2026 the update is conditioned by indices and legal caps. This means that, although the contract mentions an index like the CPI, the update may be limited by the current legal framework. The goal of these limits is to prevent rent from skyrocketing from one year to the next.

In practice, your annual increase should be linked to a permitted official index and cannot exceed the applicable legal limit. Therefore, more important than discussing "what index the contract says" is checking whether the applied percentage respects the limits in force in 2026.

5) What is the IRAV and why does it matter in 2026?

The IRAV (Reference Index for Housing Rental Updates) is an index designed to avoid disproportionate increases in rent updates. Its function is clear: it acts as a reference or ceiling for the annual increase when applicable, providing stability for both tenants and landlords.

In practice, when the contract and regulations refer to this index, the landlord cannot apply a percentage higher than what the IRAV marks at the time of update. This helps avoid increases that depend solely on inflation or specific economic situations.

6) What about the CPI and IGC?

Many contracts still mention the CPI because for years it was the most common index. There are also texts that mention the IGC (Competitiveness Guarantee Index). The key is not to know all the indices, but to understand this idea:

The index agreed in the contract can only be applied if the law permits it and always respecting current limits. If there's a legal cap (like the one established by the current framework), that cap prevails over a calculation that gives a higher increase.

This is important because some people interpret that "if it says CPI, they can increase what the CPI marks even if it's high", and that doesn't have to be the case in 2026 if regulations establish limits.

7) Notification: must they notify me and with how much time?

Yes, the landlord must communicate the increase to you for it to be applied correctly. It's recommended that they do so in writing, indicating the applied percentage, the index used, the calculation of the new rent and the date from which it will apply.

In practice, it's usual for the new rent to apply from the month following notification. Additionally, a notice margin of around one month is usually considered reasonable. What's important is that there's a record and that an increase isn't attempted without clear communication or with retroactive effect.

Furthermore, as we mentioned, this communication can also be reflected in the previous payment receipt, provided the new amount and reason for the update are perfectly clear.

8) What they CANNOT do (and it happens more than you think)

Even if there's an update clause, there are situations where the increase may be incorrect:

They cannot increase your rent without an update clause.
They cannot increase it more than once in 12 months.
They cannot apply a percentage higher than permitted by 2026 regulations.
They cannot apply the increase retroactively.
They cannot change contract conditions with the excuse of "update".

The annual update only affects the rent and must follow agreed rules and the current legal framework. It's not a wild card to modify the contract.

9) Key difference: annual update vs new contract

A very common mistake is confusing annual update with signing a new contract.

Annual update: applies within the current contract if agreed and respecting limits. New contract: occurs when the contract ends and a new one is signed; conditions can change there, but it's not an "update".

This point is key because some landlords try to present a large increase as if it were the annual update, when in reality it would be a price change that could only occur if there's a new agreement. If your contract is in force, what proceeds is an update according to index and limits, not a free "market" readjustment.

10) What happens if the contract lasts several years?

In Spain, residential rental contracts usually have a long duration due to legal extensions, and it's common to hear that a rental lasts several years. This doesn't mean the price can change freely every year. While the contract remains in force, the rent can only be updated with what's agreed and within legal limits.

That is: even if the contract is long-term, the annual update remains an update, not a new negotiation every year. The landlord cannot "rethink the price" annually as if it were a new contract.