Rent extension and 2% cap on rent increases

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1. Lease contracts for a primary residence in force when the rule takes effect can be extended, at the tenant's request, by up to two more years, keeping the contract's terms. The landlord must accept, unless other terms were agreed, a new contract was signed, or the landlord needs the home to live in.
2. The extension does not apply if landlord and tenant agree to renew the contract or sign a new one with rent lower than the current one.
3. Until December 31, 2027, the annual rent increase cannot exceed 2% if the parties do not agree otherwise. If the landlord is a large holder, the 2% cap applies in all cases, whether or not there is an agreement.

Who it affects

• Tenants of primary residences: They can request up to two more years of extension and annual rent increases are capped at 2% if there is no agreement.
• Individual landlords: They must accept a requested extension, with exceptions, and cannot raise rent more than 2% without an agreement.
• Large holders (grandes tenedores): They cannot exceed the 2% annual increase, whether or not there is an agreement with the tenant.

Words worth knowing

Gran tenedor (large holder)

A person or company that owns many rental homes, as defined by Law 12/2023.

Prórroga obligatoria (mandatory extension)

A period during which the tenant can stay in the home even after the contract's end date.

Arrendatario (tenant)

The person who rents the home.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries