A growing number of landlords in Catalonia are selling parts of their property portfolios to avoid falling under the label of gran tenedor—“major landlord”—as complex and inconsistent regulations make renting property an increasingly hostile venture even for modest investors.
Dodging the obligations of being a “major landlord”
When Catalonia introduced rent control laws last year, it didn’t just limit pricing in so-called “stressed market areas”—it also drew a bold new line between “small” and “major” landlords. That line, critics argue, has little to do with logic or justice. Under the current interpretation, owning just five residential units in a regulated area (even inherited, co-owned, or recently acquired) can make you a gran tenedor—a legal classification that treats a retired couple with a few rental flats as if they were Blackstone or an international REIT.
Now, many smaller-scale landlords are choosing to downsize their holdings rather than deal with the extra legal burdens, fiscal penalties, and reputational stigma that come with the label.
“Better to have four properties and peace of mind, than five and a headache,” says Llorenç Viñas, president of the Col·legi d’Administradors de Finques de Barcelona i Lleida. “Many owners aren’t even sure if they are classified as large landlords, and they fear being in breach of rules they don’t fully understand.”
Blurred definitions and conflicting criteria
The confusion doesn’t stop there. Discrepancies between housing and tax authorities in how they compute ownership only deepen the mess. For instance, the Housing Agency of Catalonia counts co-owned properties if the stake exceeds 50%, aligned with recent case law, while the Treasury Department uses different criteria depending on whether the property is a main residence or investment. Worse yet, there’s currently no official registry of large landlords, but there is an open channel for them to voluntarily declare their holdings.
The result? Legal opacity. According to Jesús Sánchez, former dean of the Barcelona Bar Association, this is “a legal figure riddled with interpretive problems,” and one that has required judicial clarification due to the vagueness of the original law. Even judges, not known for stirring up drama, have urged the public administration to clean up the legislative drafting.
A growing pattern of sell-offs
Since there’s more stick than carrot, many small-scale landlords are voting with their assets—selling down to four properties or less to stay under the gran tenedor threshold. That way, they retain greater freedom to set rents (within the capped index or at last contract price), avoid higher property transfer taxes (20% ITP for big landlords versus 10% for others), and sidestep the tangle of extra compliance obligations.
And there’s another big reason for selling: eviction difficulty. Under current rules, it’s notably harder for large landlords to regain possession in cases of rent arrears or unauthorised occupancy.
A hit to the rental stock
The trend is starting to impact the rental supply, especially in Barcelona, where price pressures are mounting despite the law’s intention to contain them. According to Som Habitatge, a new property owners’ association, the exit of both institutional and private landlords from the rental market will lead to “a dramatic shortage” of available units over the next decade.
Policies targeted at squeezing out speculation are, paradoxically, pushing away stable and responsible landlords, they argue.
A storm of laws—and penalties
Compounding the fallout is a broader “legislative storm”—including calls to register landlords, expanded ITP rules, threats of fines up to €900,000 for rent deviations, and looming restrictions on seasonal lets. Add enough bureaucratic fog, say critics, and owners will simply walk away.
According to Carles Sala, spokesperson for the collective of estate agents (APIs) in Catalonia, this legal and fiscal “pressure cooker” is fuelling a retreat from traditional long-term rentals and a shift toward indefinite vacancy, informal arrangements, or stepped-up property sales.
At the same time, rent on new agreements in Barcelona dropped slightly this year to €1,087/month—but partially because flats are getting smaller. Meanwhile, housing has overtaken crime as the number-one concern among Barcelona residents.
Until confusion clears and trust is rebuilt between property owners and regulators, it seems the quiet exodus of “small big landlords” will continue—reducing the city’s long-term rental stock with every transaction.
