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Spain Considers Dropping CPI Link for Pre‑2023 Rental Contracts

Adam ·
Spain Considers Dropping CPI Link for Pre‑2023 Rental Contracts

Spain’s housing ministry is reviewing a proposal to remove the consumer‑price index (CPI) as the benchmark for rent increases on leases signed before 2023.

April 2024 – Eviction sparks debate

The forced eviction of 87‑year‑old Maricarmen by property manager Urbagestión this week renewed public and parliamentary pressure on the government to advance its housing reform.

Late April 2024 – Draft decree under negotiation

Sources familiar with talks said the cabinet is preparing a decree that will be presented to the Council of Ministers on Tuesday. The draft includes a range of measures beyond eviction prevention.

Pre‑2023 leases – CPI link under review

Under current rules, rents in contracts signed before 2023 are adjusted annually according to the CPI. The government is studying a new mechanism that could replace that link with a cap activated when rent growth exceeds a defined threshold.

Post‑2023 leases – moderated index

Leases signed after 2023 already use an alternative indicator that produces smaller, more predictable increases. The proposed changes would not affect those newer contracts.

Outcome pending

The technical details of the cap remain unsettled, and final approval depends on negotiations with coalition partners. If adopted, the rule could curb steep rent hikes on older agreements while leaving newer contracts unchanged.

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