Mark Stücklin
The regional government of Catalonia (the Generalitat) is once again leading the charge in Spain against private property rights with a new decree law that tightens the screws on owners of five or more properties, particularly companies.
Critics warn it could spook investors, unsettle buyers, and further damage the region’s reputation as a safe place to own property.
Five properties make you a ‘large landowner’
Under the new Decreto Ley 2/2025, which is already in force but must be ratified by the Catalan parliament before the end of March, anyone who owns five or more residential properties in areas declared “strained residential markets” will find themselves subject to extra controls. Given that over 90% of Catalonia’s population live in such areas, this measure has an almost universal reach.
Surprisingly, the threshold to be considered a “large landowner” is just five properties. That’s a low bar by any standard. You might have imagined that large landowners would be those with dozens or even hundreds of properties. In practice, you could hold a €10,000 share in each of five flats (total equity €50,000) and still be classified as a major player under these rules. Hardly the stuff of rapacious real estate empires.
A registry to keep tabs on you
The decree establishes a Register of Large Property Holders to keep track of these owners, whether individuals or companies. In theory, this was already foreseen under previous legislation from 2022, but never fully implemented. Now, all qualifying owners are required to notify the Agència de l’Habitatge of their status and declare how many homes they own. The decree helpfully neglects to specify how this is to be done or by when.
For companies looking to sell property in “strained market areas”, there’s an extra hoop: they must provide a land registry certificate disclosing how many properties they own, to be attached to the public deed of sale.
The Generalitat’s right of first refusal
Perhaps the most troubling aspect of the decree for buyers and sellers alike is the Generalitat’s expanded right of first refusal (tanteo and retracto). This means that if a company classified as a large landowner tries to sell a property in a strained market area, the regional government has the right to swoop in and buy the property instead—either at the moment of sale or potentially using a forced sale months or years afterwards.
This is more than just a bureaucratic inconvenience. Imagine going through the entire process of finding a property, negotiating the purchase, conducting due diligence, and preparing for completion, only to have the government take it away at the last minute. The risk of wasted time and money is likely to make buyers think twice before getting involved in transactions with these so-called large landowners.
Could your property become social housing?
The decree also hints—though somewhat opaquely—that properties sold by large landowners in strained market areas could be bound by social housing conditions in perpetuity, even if the government doesn’t exercise its right of first refusal. If enforced, this would turn privately owned homes into de facto social housing stock, severely limiting their future value and use.
This should give pause to anyone who owns—or aspires to own—more than a handful of properties in Catalonia. In fact, it raises uncomfortable questions for all property owners in the region. If the authorities are willing to undermine property rights for those with five homes today, who’s to say they won’t set their sights on those with fewer tomorrow? After all, the principle of private property ought to apply equally whether you own one home or ten.
The road ahead
For now, the decree is in effect but awaits parliamentary validation. The lack of clarity in key areas, such as how the register will operate and how owners are meant to comply with the new obligations, only adds to the uncertainty. Further guidance is expected, though perhaps not in time to prevent confusion and disruption in the property market.
Meanwhile, those interested in buying, selling, or simply holding property in Catalonia would be wise to keep a close eye on developments. With this latest move, the regional government has made it clear that it sees private property less as a right and more as a privilege—one it’s increasingly willing to regulate, restrict, and repurpose in the name of housing policy.
For more details on the decree, see this guide to the Catalan Decree Law 2/2025.
