The emergency Decree-Law 1/2025, of 28 January, on rent control measures has come into force today. Approved by the Government of the Generalitat on 28 January, this Decree-Law (hereinafter, the “Decree-Law”) is a provisional measure that must be ratified by Parliament within thirty days of its promulgation to remain in effect.
The Decree-Law introduces measures aimed at protecting tenants in need of permanent housing in designated stressed market areas (hereinafter, “ZMRT”). It seeks to counteract the diminished effectiveness of rental price controls due to the absence of a penalty regime by establishing new obligations and sanctions.
The regulation consists of ten articles, one transitional provision, one repealing provision, and one final provision. It modifies provisions of Law 18/2007, of 28 December, on the right to housing (hereinafter, “Catalan Housing Law”), as well as Law 22/2010, of 20 July, on the Consumer Code of Catalonia (hereinafter, “Consumer Code of Catalonia”).
A. Key amendments to the Catalan Housing Law
1. Rental pricing violations
Letting a property subject to the rent control regime above the maximum rent set by the reference price index system is classified as an offence:
- A serious offence if the excess is equal to or below 30%, punishable with a fine between €9,001 and €90,000.
- A very serious offence if the excess exceeds 30%, punishable with a fine between €90,001 and €900,000.
2. Fraudulent practices and contract simulation
Contract fraud or simulation is classified as a form of indirect discrimination, constituting a very serious offence.
3. Improper transfer of costs to tenants
Charging tenants for real estate management fees and/or rental contract formalisation costs, when not permitted under applicable regulations, is considered a very serious offence.
4. New mandatory information in rental advertising, offers, and contracts for properties in ZMRT
The following details must be included:
- Rental price as determined by the reference price index system, or where applicable, the price of the rental contract in force over the past five years. Failure to comply constitutes a serious offence.
- Landlord’s status as a large property owner (in rental offers and contracts in a ZMRT during the declaration period). Failure to comply constitutes a serious offence.
- Purpose of the contract, which must be properly justified and truthful (in rental contracts). Failure to comply constitutes a very serious offence.
B. Penalty amounts under the Catalan Housing Law
- Very serious offences: Fines ranging from €90,001 to €900,000.
- Serious offences: Fines ranging from €9,001 to €90,000.
- Minor offences: Fines ranging from €3,000 to €9,000.
C. Key amendment to the Consumer Code of Catalonia
Misuse of temporary rental contracts
Imposing a temporary rental contract on consumers when it is established that the rental’s intended use is for permanent or habitual residence is classified as a serious offence, punishable with a fine between €10,001 and €100,000.
If the contract does not explicitly state its temporary nature, it is presumed to be for permanent residence by default.
D. Transitional provision
Landlords and estate agents must update rental advertisements and offers in compliance with the Decree-Law within five days of its enactment.