Spain Implements Rent Increase Caps

The Spanish government has approved measures to freeze rental prices for more than 600,000 existing contracts starting in April 2026. Tenants can request an extraordinary two-year extension to maintain their current contract conditions and prices. This freeze is not automatic and must be expressly requested by the tenant. Annual rent increases for active contracts are limited to a maximum of 2 percent. A commentator noted that 92% of property owners are small-scale owners rather than large investment funds. The current policy is criticized for potentially preventing small owners from seeing returns on investment and hindering youth emancipation. Contracts signed after the 2023 housing law took effect are subject to a strict rent increase ceiling. The current index allows for a maximum increase of 2.47 percent, which is below the previous 2.5 percent threshold. This cap applies to all contracts signed following the law's implementation.