With rental prices at historic highs, especially in areas like Fuengirola, Mijas or Málaga, many tenants wonder if their landlord can increase the rent… and by how much.
The new Housing Law has introduced limits, but not all cases are the same, and doubts remain common.
This guide offers clear, updated, and legally backed information on how much a landlord can charge in 2025 and what to do if the increase doesn’t comply with current regulations.
At 1Mast Real Estate, we help ensure safe and transparent renting in the Costa del Sol for tenants like you.
Current situation of rental prices in Spain
In recent years, rental prices in Spain have risen steadily due to inflation, a lack of available housing, and increasing demand in tourist zones. In response, the government introduced temporary limits to prevent excessive increases.
- 2022 → 2% cap (emergency measure due to inflation)
- 2023 → 2% cap maintained
- 2024 → 3% limit
With the approval of the Housing Law in May 2023, a new system was established. As of 2025, the rent adjustment is calculated based on the IRAV (Reference Index for Housing Rent).
- 2025 → IRAV (2.2% in January | 2.28% in February)
This index replaces the CPI in many contracts and aims to bring more stability and predictability to tenants.
In Malaga and the Costa del Sol, the situation is especially critical. According to the Ministry of Housing, average rental prices exceed €13/m² in several towns, with annual increases of over 10%.
In places like Fuengirola, Mijas or Torremolinos, rent often consumes more than 30% of the average household income, meeting the criteria for a stressed area. This means tenants are under increasing financial pressure to maintain housing.
In this context, knowing your rights and understanding legal limits is key. Having access to accurate information—and professional support when necessary—can make a real difference when dealing with unfair rent increases.
Legal framework for renting in Spain: what you need to know
Spain’s rental regulations operate on three levels: national, regional, and local. Nationally, the Urban Leases Law (LAU) remains the foundation. Article 18 of the LAU states that the rent can be updated annually, provided this is stated in the contract. But any increase must respect the legal limits in force.
To protect tenants from disproportionate hikes, the 2023 Housing Law introduced maximum limits: 2% in 2023, 3% in 2024, and from 2025 onward, a new index applies: the IRAV (Reference Index for Housing Rent), published monthly by Spain’s National Statistics Institute (INE). For example, the IRAV for January 2025 was set at 2.2%, and 2.28% for February.
This affects contracts signed after 26 May 2023. Older contracts that mention CPI (Consumer Price Index) as a reference can continue using it, unless the parties agree to apply the IRAV.
Regionally, Andalusia applies national legislation but also has the authority to propose areas as stressed zones based on specific housing pressure criteria. Local councils, like Málaga’s, are responsible for officially declaring these zones and can implement additional control measures.
In Málaga, several districts are being evaluated due to high rent-to-income ratios exceeding 30%, which meets one of the requirements to be declared a stressed area.
Once a zone is officially designated as stressed, tenants gain additional protections, such as:
- Mandatory lease extensions of up to 3 years upon tenant request
- Rent limits for new leases
- Obligation for landlords to justify rent increases, even after renovations
| Level | Regulation | Implications |
|---|---|---|
| National | LAU + Housing Law 2023 | Article 18 allows annual updates. 2% cap (2023), 3% (2024), IRAV from 2025. |
| Regional | Junta de Andalucía | May propose stressed areas based on national criteria. |
| Local | Málaga City Council | Can declare stressed zones, enforce caps, and mandate lease extensions. |
How to respond to an unfair rent increase
Receiving notice of a rent increase can be unsettling—especially if you’re unsure whether it’s legal. To avoid making rushed decisions, it’s important to act calmly and methodically. Here’s a practical step-by-step guide to help you navigate this situation safely:
- Carefully review your contract. Check if there’s a clause allowing rent updates. If not, the landlord cannot change the rent during the contract period. If the clause exists, verify which index applies (CPI or IRAV) and whether the proposed increase complies with the legal limits.
- Check current legislation. Contracts signed from May 2023 must follow the IRAV. For 2025, the maximum published rates are 2.2% in January and 2.28% in February. Any increase must remain within these limits.
- Respond in writing. If the increase is not legal, reply to the landlord explaining your disagreement. Do this through verifiable means—registered mail, burofax, or email with confirmation of receipt.
- Continue paying the legal rent. Only pay the amount agreed upon in the contract. Paying the new amount without contesting it may be interpreted as acceptance.
- Gather all documentation. Keep copies of your contract, all communications, payment receipts, and notices. This information may be useful if the conflict escalates.
- Seek professional advice. The OMIC in Málaga and the Junta de Andalucía provide free support. They can also assist you with mediation procedures if necessary.
- Consider legal action. If the landlord persists with an unlawful increase and no agreement is reached, you can take the matter to court. Legal backing and proof will be essential to protecting your rights as a tenant.
Other frequently asked questions from tenants
Can the landlord raise the rent without notice?
No. The landlord must notify you in writing at least one month in advance before applying any increase. The notice must include the new amount, percentage, and the legal basis (such as IRAV or CPI). Without proper notice, the increase is not valid.
What if my contract doesn’t mention rent updates?
If your contract doesn’t include a rent update clause, the rent cannot be modified during the term of the agreement. For instance, if you signed in 2021 for five years at €700/month, the rent remains the same until 2026 unless you both agree otherwise.
What is the maximum annual increase?
It depends on the year and the applicable index:
- 2023 → max 2%
- 2024 → max 3%
- 2025 → IRAV applies, published monthly by INE
If the IRAV in January 2025 is 2.2% and you currently pay €700, the new rent would be €714.40/month.
What if my contract mentions CPI but IRAV now applies?
Contracts signed before May 2023 still follow the CPI, unless both parties agree to switch to IRAV. Contracts signed after that date must use IRAV. A different index cannot be applied without your consent.
What exactly is the IRAV?
The IRAV (Reference Index for Housing Rent) is the official index that replaces the CPI in many recent rental contracts. It’s published by the INE and sets the annual maximum increase a landlord can apply. It’s designed to stabilise the market and prevent excessive rent hikes.
What rights do I have in Málaga (stressed area)?
If your neighbourhood is officially declared a stressed area, as is already the case in some parts of the Costa del Sol, you are entitled to:
- Mandatory contract renewal (you can extend your lease up to 3 years upon request)
- Price caps on new contracts
- Landlords must justify any rent increase, even after renovations
Several areas of Málaga are currently under review, as the housing cost exceeds 30% of average household income.
Can my landlord evict me if I reject the increase?
No. If the increase is illegal or not properly justified, you can refuse it without that leading to eviction. The landlord can only choose not to renew once the legal term ends (5 or 7 years, depending on the landlord), and must respect legal notice periods and conditions. While the contract is in force, you have the right to stay and pay the agreed rent.
1Mast: specialists in secure renting for tenants
If you’ve read this far, chances are you’re facing a situation where your landlord’s proposed increase doesn’t seem fair or clear. Or perhaps you’re a property owner looking to ensure everything is done correctly, respecting tenant rights while protecting your own interests.
At 1Mast Real Estate, we can help with both. We have extensive experience managing rentals in Málaga, Fuengirola, Mijas, and the wider Costa del Sol, whether you’re a tenant looking for a reliable place to live or a landlord seeking peace of mind with your rental property.
Our team is made up of local professionals who understand the market and offer close, personalised guidance. If you’re looking for a home, we’ll assess your situation and help you find a property that fits—not just in price, but in location, contract conditions, and long-term potential.
If you’re a landlord, we handle everything: from finding tenants to monthly management, including legal updates, communication, and administrative tasks.
At 1Mast, we make renting a clear, transparent, and hassle-free process for both tenants and owners. We are the go-to real estate agency for secure rentals in the Costa del Sol, here to help you make informed decisions with legal backing and the confidence of knowing you’re in good hands.