Introduction of new rules for property owners
The Catalan authorities are finalizing preparations for launching a special registry that will include all individuals and legal entities owning a significant number of residential properties. The corresponding regulation is expected to be approved by the end of October. The new registration system will apply to those who own at least five apartments in areas designated as high-tension rental markets. In all other municipalities, the threshold rises to ten properties or 1,500 square meters of residential space, with storage units and parking spaces excluded from the calculation.
Objectives and specifics of registration
The main purpose of the registry is to identify owners subject to obligations to provide social housing or alternative accommodation in cases of rental non-payment. These same owners are also subject to an increased property transfer tax rate, which has risen by 20% since late June. Registration in the registry becomes mandatory, and administrative penalties are imposed for non-compliance. In addition, the same legal framework regulates the accounting of vacant and occupied apartments.
Definition of major property owner and administrative procedures
Since February, a decree has been in force requiring companies classified as major property owners to notify the Catalonia Housing Agency of their status. This is necessary for subsequent inclusion in the registry if they own five apartments in high-demand areas or ten in other districts. The legislation aims to enable authorities to respond quickly to market conditions and use such properties to address housing needs.
The registry of large legal entities owning residential properties will be managed by the Catalonia Housing Agency. It must include all companies that meet the criteria set by the law on urgent measures to combat the housing crisis and energy poverty, as well as entities defined in the housing rights law.
Companies subject to these requirements are obligated to inform the Agency of the number of apartments they own as soon as they reach the specified threshold. Once the regulation governing the registry takes effect, registration must take place within the established time frame and according to the prescribed procedure.
Expansion of administrative powers and transaction specifics
The new regulation also expands the authorities’ rights to purchase housing with priority. Now, when an apartment is sold in a high-demand area and is owned by a registered large property holder, the Catalonia administration is granted the right of first refusal. This rule applies to both the initial and any subsequent transactions involving the property, as long as the decree remains in effect.
The only exception is transactions involving new developments if the property is purchased by an individual for personal residence. Apartments sold through administrative or judicial auctions are also subject to the new rules.
Until the regulations governing the registry come into force, legal entities wishing to sell property in high-demand areas must confirm the number of apartments they own with a special statement from the registry. This document must be attached to the sales contract.
