Record inflation levels in Spain are resulting in many tenants having their monthly rent raised by landlords, not to mention the ongoing war in Ukraine which is having a further effect on the Spanish economy. The question is, can my landlord increase my rent due to rising inflation? We have the details.
CPI Spain 2022
Rent increases in Spain are just one of many elements adding to worry for consumers whose budgets are being stretched in all senses as living costs in Spain continue to rise in 2022, as inflation has reached its highest level in over 30 years. Spain's inflation rate in February 2022 reached 7.6 percent, the highest since 1986. Inflation is otherwise known as the Consumer Price Index (CPI) which in Spain translates as the "IPC".
One of the consequences of the CPI rising in Spain is that landlords and property owners use this index as a guide to raise monthly rental prices for tenants. With current inflation rates, this could have a significant effect on how much you have to pay, but there are some rules that you should be aware of.
Can my landlord put my rent up due to inflation?
Your landlord in Spain can increase your rent due to inflation and it is perfectly legal to do so. However this is only the case in certain circumstances as stated in the most recent reform of the Spanish rental law.
A landlord can increase the monthly rental rate if both parties have expressly agreed to this in the contract. Basically, your contract will state that rent is subject to "IPC" changes. In the case that this is stated in your contract, it is also worth noting that your landlord cannot just put the price up from one month to another. The update should only take place every year on the date the contract was originally signed. This means that a landlord cannot increase the rent several times per year, for example, and cannot increase the rent during the first year of the contract.
Your landlord is obliged to inform you of the update in writing with one month's notice and in any case, the rental increase must not exceed the rate of inflation from the 12 months prior to the change. If the contract contains no clauses referencing an agreement to increase the rent, then your landlord cannot put it up.
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