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Catalan Statutory Council Rejects Law Targeting Speculative Home Purchases

Catalan Statutory Council Rejects Law Targeting Speculative Home Purchases RUSSPAIN.com © russpain.com
Catalan Statutory Council Rejects Law Targeting Speculative Home Purchases © russpain.com
Catalonia's top legal advisory body has ruled that a proposed law to curb speculative property buying violates both the Spanish Constitution and the Statute of Autonomy. The decision puts the region's housing reform plans in doubt.

The Consell de Garanties Estatutàries (CGE), Catalonia’s statutory advisory body, has delivered a major setback to the regional government’s plan to restrict speculative property purchases. In an opinion issued Tuesday, it concluded that the proposed law conflicted with constitutional and statutory provisions, including Article 33 of the Spanish Constitution, which protects property and inheritance rights, and Article 38, which safeguards freedom of enterprise. The council also raised concerns about the Catalan Parliament’s civil-law powers under Article 129 of the Statute of Autonomy and the state’s authority over contractual obligations under Article 149 of the Constitution.

The legal opinion, requested by the PP and Junts, is advisory rather than binding, but carries impressive political weight. The council’s seven-point resolution found that the draft did not provide adequate legal certainty and predictability for owners and investors facing the proposed restrictions. It also described some obligations imposed on property owners as “excessive and disproportionate.” The measure would have allowed local councils in high-demand areas to restrict the use of certain residential properties, with the stated aim of directing homes toward basic residence or long-term rentals at regulated prices.

Backed by the governing PSC-led Generalitat and promoted by Comuns, the proposal was fast-tracked in the Catalan Parliament earlier this month despite opposition from Junts, the PP, Vox and Aliança Catalana. The council criticized the legislative process, noting that it did not involve the Consell de Governs Locals as required, and recommended opening a period for amendments. Its concerns extended beyond property rights and freedom of enterprise to the division of legislative powers between Catalonia and the state, particularly where the draft affected civil-law and contractual matters.

After the opinion, the government led by Salvador Illa moved to narrow the proposal rather than abandon housing regulation. The revised approach would remove the original limit on the number of homes that could be purchased and allow purchases if the properties were dedicated to habitual residence. It would also eliminate the earlier distinction between small and large property holders. The redesign aims to reduce the risk of a challenge before Spain’s Constitutional Court while retaining the policy goal of prioritizing residential use in areas under housing pressure.

The legal debate has shifted from whether Catalonia should address speculative purchases to how far it can regulate the use of acquired homes without infringing constitutional rights or exceeding its legislative competence. The PP welcomed the council’s findings and warned that it would challenge the legislation before the Constitutional Court if the government proceeded with the original approach. The real estate sector had also signaled its intention to oppose the measure, part of a broader housing reform package that includes rent caps and preferential purchase rights for public authorities.

Comuns continues to press for stronger restrictions and has argued that the CGE’s opinion is not binding. It has warned it could take its own version of the measure to Parliament if it fails to reach an agreement with the PSC and the government. The reported deadline for agreeing amendments is 30 October 2026, leaving the parties to negotiate a compromise between the government’s narrower focus on residential use and Comuns’ original effort to curb investment-driven acquisitions. Separately, scrutiny of public spending and oversight in Catalonia has drawn national attention, including the investigation into youth support funding by the Anticorruption Prosecutor.

The Consell de Garanties Estatutàries is Catalonia’s highest consultative body on legal and constitutional matters. It issues opinions on whether proposed laws are compatible with the Statute of Autonomy and the Constitution. Its reports do not themselves block legislation, but can shape parliamentary negotiations and the government’s assessment of litigation risk. The current dispute reflects the challenge of addressing housing affordability while respecting constitutional limits on intervention in property ownership and economic activity. The outcome of negotiations could influence the design of future housing measures in Catalonia and across Spain.

Richard Reid RUSSPAIN.com
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Richard Reid

Richard Reid is the News Editor at RUSSPAIN.COM. He oversees editorial standards, source review and corrections and writes across general news, including politics, economics and social affairs.