Catalonia Proposes Ban on Buying Property for Investment Purposes

Photo: Idealista

The Comuns party has proposed banning the purchase of property in Catalonia for investment purposes, reports Idealista. In response, the government has created a special working group to analyse the potential implications. Experts believe the initiative poses risks to private property rights and market development.

The working group includes representatives of the Catalan government, Comuns deputies and external specialists. At the first meeting at the Territori department, they plan to review a report prepared for the Barcelona metropolitan area, which should help assess the scale of speculative purchases and the possible impact of new restrictions. Meetings will be held weekly, and preliminary conclusions are expected in the first quarter of 2026.

Rent cap

In parallel, the Catalan government is advancing a previously agreed package of measures. It includes the expansion of public housing stock as well as limits on rental payments. Since 16 March 2024, a rent cap has been introduced in so-called “stressed market areas” — 140 municipalities covering around 80% of the region’s population. The rent cannot exceed the amount stated in the last contract signed within the past five years. For major owners who have five or more properties, a different limit applies — the maximum must not exceed the value set by the state Reference Index. If these documents are not available, the strictest of all applicable limits is used.

The law provides exceptions: rent may be increased by up to 10% if the property has undergone major renovation, has improved energy efficiency or enhanced accessibility — but such allowances are tightly regulated and apply only in specific cases. The rules are valid until 16 March 2027, though they may be extended.

The authorities are also tightening sanctions. Property owners who do not comply with restrictions in densely populated areas face fines of up to €900,000. This also applies to owners who attempt to bypass the rules by using seasonal rentals.

Owner registry

In addition, the region is creating a registry of major landlords. This will apply to companies, funds and private individuals who own multiple properties. Even owners who technically do not run a rental business may fall under this category: for example, a family that has inherited several apartments or a person who owns small shares in five properties. For them, this means mandatory registration and the risk of fines for failing to comply with the rules.

The requirements stem from Law 24/2025, which imposes additional obligations on registered owners. In some situations, they will be required to provide social rent or alternative accommodation if tenants stop paying. In addition, this category is already subject to a 20% increase in the property transfer tax.

The new rules also expand the powers of the Generalitat: the region receives a pre-emptive purchase right over properties owned by registered landlords in the most stressed areas, including auctioned assets. The only exception applies to the sale of new homes to private buyers for their own use. Further control is provided by new registries of vacant and occupied dwellings, which strengthen administrative oversight of the housing market.

The authorities plan to use the collected data to monitor prices, verify compliance and impose sanctions. The new framework also expands the government’s ability to use the pre-emptive purchase mechanism: the region will be able to acquire properties from major owners in cases linked to evictions or social housing programmes. The legal framework for the registry is already in place, and owners must submit information about their properties even while the system operates in a transitional mode. The launch was planned for late October but was postponed after hearings and amendments. The registry is expected to become operational soon.

Impact on investors

According to the latest survey by Centre d’Estudis d’Opinió, housing affordability remains the top public concern, with the rental market under the greatest strain. However, the new proposal — to ban investment purchases — has triggered a sharp reaction from developers and major owners. The industry believes that such a measure could complicate renovation and refurbishment transactions and reduce business activity overall. Some companies view the initiative as interference with private property and warn of market risks.

Analysts at International Investment note that conditions in the Spanish market are becoming significantly tougher for investors, while uncertainty is increasing. The government is not only limiting rental activity but also extending control over property purchases, ownership and use. This reduces the scope for typical investment strategies: risks now stem not only from market conditions but also from regulatory changes, which may evolve faster than investors can adapt.

The key consequence is the rising cost of compliance and the growing likelihood that even fully legal models may fall under new restrictions. Any purchase decision — especially in Catalonia — now requires more thorough legal and operational due diligence, as regulatory changes affect both profitability and the ability to use the property as originally intended. Regulatory risk has become as important as location or entry price, and it must be considered alongside financial parameters and the risks of property occupation by squatters.