Spanish Parliament Considers New Restrictions for Legal Entities
Next week, Spain’s Congress of Deputies is set to discuss a high-profile legislative proposal. The political platform Sumar aims to amend the current version of the Housing Law, adopted in 2023. The main goal is to completely ban the purchase of residential properties by companies, funds, legal entities, and investment structures. According to the initiative’s authors, such measures could halt real estate speculation and make housing more accessible for citizens.
Essence of the Bill and Supporters’ Arguments
The reform’s initiators believe that the right to live in and use housing should belong exclusively to individuals. In their view, only citizens can truly use property as a home and not as a means to profit. Sumar insists that when homes and apartments are bought up by funds and corporations, these properties become instruments for generating income rather than places to live. As a result, they argue, prices rise and housing becomes less affordable for ordinary families.
Details of the Proposed Changes and Potential Consequences
The bill stipulates that legal entities will only be allowed to own properties that are used for business activities—such as offices, warehouses, or manufacturing facilities. Residential apartments and houses, according to the proposal, should remain in the ownership of individual citizens. No exceptions are provided, not even for charitable organizations or foundations. Sumar believes this measure will reduce the number of so-called ‘invisible apartments’ that stand empty, and also ease pressure on the rental market.
Political outlook and parliamentary response
The issue sparked lively debates among lawmakers. Despite differing opinions on how many properties an individual should be allowed to own, many parliamentary groups agree that speculative activity by large players needs to be curbed. The initiative is expected to draw support from a diverse range of political forces—from the right to the left. Some parties, including regional ones, have already signaled their willingness to back the reform if it helps eliminate so-called ‘predatory’ funds from the housing market.
Potential risks and market expectations
Experts note that the adoption of the law could bring significant changes to the real estate market. On one hand, it may increase housing affordability for citizens; on the other, it could make the sector less attractive for major investors. In any case, the fate of the initiative will be decided in the coming weeks, and its outcome may influence investor strategies and buyers’ plans nationwide.
