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From 30 march to 30 june, the limitation of the rent update to 2% is applied
06/05/2022

From 30 march to 30 june, the limitation of the rent update to 2% is applied

Through Royal Decree Law 6/2022 of 29 March, adopting urgent measures within the framework of the National Plan of response to the economic and social consequences of the war in Ukraine, the Spanish government, on 29 March, has exceptionally limited the annual CPI increase to be applied in housing rental contracts, setting it at 2% and not at that set by the CPI itself. It should be noted that, in February, the increase in the CPI was 7.6%.

With this measure, the government intends to establish that rents will not be updated in relation to inflation, but rather according to the annual variation of the Competitiveness Guarantees Index, which is a European price regulation framework.

The measure applies to housing rental contracts signed between 1 April and 30 June, regardless of the year in which they were signed, as long as these contracts contain a clause providing for the update, since it is possible that, when the contract was signed, the parties did not agree to update the rent. 

Rental contracts for use other than as a dwelling, such as commercial premises, garages or storage rooms, are excluded from the measure.

The regulation differentiates between whether the lessor is a large tenant or not, being considered a large tenant the natural or legal person who owns more than 10 urban properties for residential use or a built-up area of more than 1,500 m2 for residential use, excluding in any case garages and storage rooms. 

In this way, the non-large tenant will be able to renegotiate with the tenant an increase of more than 2%, but if the agreement is not reached, the 2% increase must be applied. On the other hand, the large tenant will not have this possibility under any circumstances and will have to apply a maximum of 2%.

We remind you that it is advisable to review the updates and oppose those that are incorrect, as well as bearing in mind that the updates only apply to each year of the contract and must be notified in writing, without being able to increase the rent retroactively.