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The update of rental prices in Spain continues to depend on Article 18 of the Urban Leases Act (LAU), which allows the rent to be reviewed annually if this has been agreed in the contract. Although the Competitiveness Guarantee Index (IGC) should apply by default, the most commonly used index remains the CPI. This indicator, calculated by the National Statistics Institute (INE) based on the evolution of prices in the consumer basket, reflects changes in the cost of living and determines in many contracts how much the annual rent can increase.

During 2022 and 2023, the Government limited the maximum rental increase to 2%, and in 2024 the cap was set at 3%, applying the CPI only if its value was lower than that limit. In 2025, this cap no longer applies to contracts signed before the Housing Law, so the index agreed by the parties, generally the CPI, is used again. The evolution of the CPI shows increases of 3% in January and February 2025, between 2.2% and 2.7% from March to August, and 3.1% in October.

The rent increase is calculated by multiplying the current rent by the CPI percentage and adding the result. For example, for a contract updated with the September 2025 CPI (3.1%), a tenant who paid 1,200 euros will pay 1,237.20 euros per month. The CPI used must be the one published two months before the revision, since the INE publishes official data on the 15th of each month, and the landlord must notify the tenant at least one month in advance.

Since January 2025, contracts signed after the entry into force of the Housing Law (May 2023) are updated according to a new index created by the INE, which takes as reference the lowest value between the CPI, core inflation, and the adjusted annual average variation. This index was also 3.1% in October 2025. In contrast, contracts signed before the Housing Law continue to be updated according to what is agreed between the parties, usually using the CPI.