IRAV: What it is and How it's calculated (2026)

The IRAV or Housing Lease Reference Index, is something you, as a tenant, should know. Today, we explain EVERYTHING you need to know about this index, which is used to calculate your rent.

What is the IRAV index?

The Housing Lease Reference Index, or IRAV , is a new index created by the INE, or National Institute of Statistics. Its main purpose is to update rent in a residential lease agreement. 

It was in 2025 when the IRAV replaced the well-known CPI as the reference for calculating any rent increase for apartments. It became effective for contracts signed after May 26, 2023. 

This table or index is calculated monthly, and its value represents the maximum limit for rent updates. However, for all contracts signed before May 26, 2023, updates are governed by the CPI.

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Origin

The IRAV originates from the need to comply with Law 12/2023, which addresses the right to housing. The intention was to replace the CPI, or Consumer Price Index, used to regulate rental contracts. 

The primary objective is to set a limit on rising rental prices, especially in an environment of high inflation. This provides greater security to the real estate market.

Differences between IRAV, IVA, and ISLR

The IRAV, IVA, and ISLR differ significantly and should NOT be confused when applied. In the following table, we will provide a comparative analysis, aiming to differentiate them to clarify their concepts.

Who is required to pay?

The Housing Rental Price Index is NOT a tax that is paid, but rather an index that regulates rental prices. It applies to certain areas of the residential market that are under pressure. 

In this regard, there is no legal obligation to pay the IRAV, but certain landlords are required to apply its limits when setting or updating residential rental prices.

What are the exceptions to the IRAV?

The IRAV or Housing Rental Price Index does not apply to all rental contracts. There are some exceptions, such as contracts signed before May 25, 2023.

However, let's examine other more detailed exceptions:

Contracts prior to May 25, 2023

• Seasonal rentals
• Room rentals, commercial premises, offices, garages, and storage units
• Contracts without a rent review clause
• Large landlords in non-stressed areas

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How the IRAV is calculated: Step by step

The exact formula is quite technical and must be published in the BOE or Official State Gazette. The intention is to leave no doubt about the reality of the residential rental sector.

Ultimately, the goal is simply to strike a balance between tenant protection and property rights. The best way to explain how the IRAV is calculated would be to use a practical example.

Practical example for calculating the IRAV

Let's assume a rental agreement for a house in Buñol was signed in June 2024, with a monthly rent of 900 euros. When the first year is completed in June 2025, the landlord will likely want to increase the rent.

In that case, the landlord or property owner must follow these steps:

• They must notify the tenant of their decision 1 month in advance, meaning in May 2025.
• They must look for the new index information that the INE should have published in May 2025; if it's not available, they must use the closest available data.
• If the increase is to take effect from July, they can use the May 2025 index.
• Let's assume the index for that month was 2.15%; then the rent should use this formula:

NR = €900 + (€900 * 2.15 / 100) = €900 + €19.35 = €919.35

• Then, the tenant would start paying €919.35 monthly from July 2025, it's that simple.

However, this new calculation entails some implications and considerations that should not be overlooked:

• Significant modification in how house rentals are regulated.
• Creates a framework of stability and predictability for both landlord and tenant.
• Limits profits, but provides a clear and official benchmark.
• Avoid disputes and uncertainty.

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Where to consult it?

The recommended place to consult the IRAV is the INE (National Institute of Statistics), on its web. It is supposed to be published monthly, usually in the middle of the month, reflecting the previous month's data. 

You can also consult the IRAV using the official calculator of the Ministry of Housing. This ministry provided a web space where it offers transparency in updating the maximum rent, in accordance with current legislation.

How is the IRAV declared and paid?

As mentioned earlier, the IRAV is NOT a tax that must be declared or paid directly. It is an index created to regulate rental prices in stressed areas.

Indeed, it affects any income you may have from rent. This income MUST subsequently be declared as part of your Personal Income Tax (IRPF).

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Recommendations for compliance

To comply with the IRAV, here are some precise and practical recommendations:

• Consult the IRAV before setting or updating rental prices
• Ensure the rental price does not exceed the IRAV's upper limit in stressed areas
• Check if you are in a stressed area
• Correctly apply annual updates
• Do not exceed the IRAV limit by more than 30% in stressed areas
• Ensure the rental contract reflects the agreed-upon price and complies with regulations 
• Seek professional advice
• Contact the Tax Agency or your regional housing authority to clarify questions about stressed areas or exceptions
• Take advantage of exceptions and benefits

Frequently asked questions about IRAV

What is the IRAV?

As of May 2025, it is 1.99%, according to the INE).

How often is it updated?

You must update it annually, based on the INE's May publication.

How and when should the tenant be notified of a rent increase?

In writing, with at least one month's notice, before the contract renewal date, applying the IRAV (1.99%) for contracts signed after May 26, 2023.

 Can the landlord rent above the stipulated amount?

Not in stressed areas, with exceptions such as improvements that justify up to an additional 10%. However, small landlords can maintain the previous rental price, which must have been updated to 3% in 2024.

What happens if the IRAV is not respected?

They can be sanctioned with fines ranging from €90,001 to €900,000 if the rent exceeds the IRAV limit by more than 30% in stressed areas.

Would the IRAV affect contracts already signed?

Yes, for updating contracts signed after May 26, 2023, you should use the IRAV. However, previous contracts are limited to 3% in 2024.

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Conclusion

If you are considering renting a property, remember to apply the IRAV, and if you need advice, just contact us,consult with Domoblock's experts! 

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