CPI at 4.3% and IRAV at 2.47%: how much can you raise the rent in Málaga?

Update, 15 October 2026: the figures and rules in this article apply to updates before 8 October. Since that day Royal Decree-Law 29/2026 has applied: for annual updates falling due up to 31 December 2027, the rent cannot rise if it is above the Serpavi limit and, if it is not, it rises by whatever is newly agreed with the tenant or, without agreement, by 2% at most.

If your residential lease was signed on or after 26 May 2023 and its annual update falls between mid-September and mid-October, you cannot raise the rent by more than 2.47%, August's Housing Rental Reference Index (IRAV). If the lease is older and indexed to CPI, the increase can reach 4.3%. Spain's National Statistics Institute (INE) published both figures on 15 September, and the 1.83-point gap between them is the widest since the IRAV was created. For landlords and investors in Malaga and the Costa del Sol, that gap changes the rental maths.

How much can the rent go up in September and October 2026?

The two indices have gone separate ways. The IRAV has held steady at 2.44% in June, 2.49% in July and 2.47% in August, and it has now been above 2% for 15 months in a row. CPI, by contrast, rose seven tenths of a point in a single month to 4.3%, its highest level since February 2023. In practice, rent on a recent lease now grows well below inflation, while an older CPI-linked lease keeps pace with it.

That is by design: the IRAV takes the lowest of three measures (headline inflation, core inflation, which strips out energy and unprocessed food, and an adjusted average), which is why it cushions sudden price spikes like this summer's.

IRAV or CPI? Which index applies to your lease

The signing date decides. Residential leases signed from 26 May 2023, when the Housing Law came into force, are updated as agreed, but the annual increase can never exceed the IRAV. Leases signed before that date follow whatever the contract says, which in most cases is CPI. And if the lease has no update clause, the rent stays the same.

The Competitiveness Guarantee Index (IGC) comes into play when a lease provides for rent updates without naming an index: the law then defaults to it, and by definition it moves between 0% and 2%.

How much does rent rise with the IRAV and with CPI? Examples in euros

To show the real effect, we applied August's two indices to several monthly rents. These are straightforward calculations that work for any property and serve as a quick reference before notifying the tenant.

Rule of thumb: for every €1,000 of monthly rent, updating with CPI instead of the IRAV means €219.60 more per year. For a tenant on a recent lease the IRAV is a relief; for the landlord it means income growing below inflation, something worth factoring into any yield calculation.

How do you notify the tenant of a rent increase?

The update does not apply automatically. Spain's Urban Leases Act (LAU) requires written notice stating the percentage applied, and the tenant may ask for the INE certificate that backs it up. The new rent can be charged from the month after notice is given, and a note on the previous month's receipt is valid. If notice comes late, the increase cannot be claimed for months already paid.

• Check the signing date and the exact wording of the update clause.
• Use the latest figure published by the INE on the date of the annual update.
• State both the percentage applied and the new rent in euros in the notice.
• Keep a copy of the notice: without it, the new rent cannot be enforced.

Is the 2% cap the Government approved in March still in force?

Not the March one. Royal Decree-Law 8/2026, approved on 20 March, capped annual rent updates at 2% and let tenants request an extraordinary extension of up to two years. Congress rejected it on 28 April, so those measures lapsed. If your lease was updated or extended while the March decree was in force, it is worth having a lawyer review that specific case.

But since 8 October a new limit has applied, under Royal Decree-Law 29/2026. For annual updates falling due up to 31 December 2027, the rent cannot rise if it is above the Serpavi limit, Spain’s state rental price reference system; if it is not, it rises by whatever is newly agreed with the tenant or, without agreement, by 2% at most. This applies both to CPI-linked leases and to those capped by the IRAV. As of 15 October 2026, the decree is awaiting validation by the Standing Committee of Congress (Diputación Permanente); if it is not validated, the standard rules return.

What does it mean for buy-to-let investors in Málaga and the Costa del Sol?

Andalusia has no stressed residential market areas: the regional government has not declared any, unlike Catalonia, the Basque Country, Navarre, Galicia or Asturias. That is why in Málaga, Marbella or Estepona the initial rent on a new lease is freely agreed, and the IRAV only limits annual updates while the lease runs.

This makes signing day the key moment for yield. On a primary-residence lease the tenant is entitled to extend it until it reaches five years, or seven if the landlord is a company, and throughout that time the rent can grow at most in line with the IRAV. At today's purchase prices, getting the starting rent wrong weighs far more than the annual update: according to our September Costa del Sol market report, based on 8,810 properties for sale, the median asking price is €625,348 in Málaga city, €649,000 in Estepona, €549,000 in Mijas and €955,000 in Marbella.

• Set the initial rent using local market data, not the previous lease.
• Calculate the yield assuming the rent will grow below inflation.
• Review every year which leases reach their anniversary and which index was last published.
• Bear in mind that holiday rentals are still not governed by the IRAV, but seasonal rentals now have a limit tied to it: for contracts signed from 8 October 2026, if you let the same home on successive temporary contracts, the rent of each new contract cannot rise, on an annual basis, by more than the current IRAV.

Conclusion

With CPI at 4.3% and the IRAV at 2.47%, the signing date of a lease decides how much the rent can rise this autumn. For a tenant on a recent lease the increase is moderate; for the landlord, yield depends above all on the initial rent and the purchase price. At EVS PROPERTY GROUP we help landlords and investors set a realistic rent, choose the right area and work out the yield before buying to let in Málaga and the Costa del Sol. If you are weighing up your own case, let's talk.

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