This information note aims to briefly outline the various developments that have taken place in the first quarter of 2025 that affect housing. We will not comment on Decree-Law 2/2025, as it was the subject of a specific information note. The main developments are as follows:
1. Decree-Law 1/2025 of 28 January on urgent measures in the matter of rent control
1. What is it?
This is a legal norm with the force of law that amends Law 18/2007, which regulates the right to housing, and Law 22/2010, which approves the Catalan Consumer Code.
Essentially, the articles relating to the sanctioning regime of the aforementioned laws are amended.
2. Key ideas
It provides for measures to reinforce consumer rights concerning advertising obligations imposed on property owners in tense residential market areas (hereinafter, TRMAs). Contracts must state the price of the previous lease and the condition of the owner as a large property holder.
It establishes a new type of infringement for breaching the maximum price regime applied under a TRMA declaration. This is now classified as a very serious offence under Law 18/2007, potentially carrying fines from €90,001 to €900,000.
It introduces the possibility of sanctioning owners who fraudulently use seasonal lease agreements.
3. Commentary
Decree-Law 1/2025 introduces the definition of “indirect discrimination” to ensure access to housing, by amending Article 45 of Law 18/2007. This article, part of the section on consumer protection in housing matters, now allows the sanctioning of owners who carry out such indirect discrimination (i.e. that which unjustifiably hinders access to housing).
Article 59 of Law 18/2007 is also amended. This article, aimed at consumer protection, establishes mandatory content for housing advertisements. It is now mandatory to indicate the price of the last rental contract for properties located in TRMAs. Additionally, the obligation to include the rent applicable under the official rental price index is reaffirmed.
Furthermore, specific infringements are added to Law 18/2007, such as charging the tenant more than the legally established rent (in TRMAs), or failing to comply with the now expanded advertising obligations.
A new infringement is introduced in the Catalan Consumer Code: the fraudulent use of seasonal rental contracts when the tenant’s actual intent is to reside permanently. This subjective element makes enforcement difficult, especially when the landlord clearly advertises the rental as seasonal.
2. Decree-Law 5/2025 of 25 March on urgent fiscal, personnel expense, and other administrative measures
- What is it?
This is a norm with the force of law that amends various legal provisions to improve access to housing and financing for protected housing. It also includes measures for victims of gender-based violence and other fiscal provisions (such as those affecting the CO₂ vehicle emissions tax, water levy, regional income tax deductions, and the waste deposit levy), though only those affecting housing will be addressed in this note.
2. Key ideas
This Decree-Law introduces certain tax reliefs aimed at facilitating access to housing for young people and victims of gender-based violence. It also updates (in fact, increases) the property transfer tax rate for property acquisitions exceeding €600,000, and sets an increased 20% rate for acquisitions by large property holders.
Compensatory tax reliefs are also established for purchases of office buildings or buildings to be converted into protected housing.
3. Commentary
The main measure is the revision of the Property Transfer Tax (ITP) rates, applicable from 25 June 2025:
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- Transfers up to €600,000: 10%
- Between €600,000 and €900,000: 11%
- Between €900,000 and €1,500,000: 12%
- Over €1,500,000: 13%
- Officially protected housing: 7%
- Acquisitions by large property holders: 20% (including garages and storage rooms acquired with the dwelling, up to 2 units, and entire buildings regardless of horizontal division)
- Entire building acquisitions: 20% rate applies, even if not by a large holder, whether acquired in a single or successive transactions.
- Acquisitions by gender-based violence victims: 5% for habitual residence.
- Habitual residence acquisitions by young people: 5%, with age limit raised from 32 to 35 years.
For these purposes, a large property holder is defined as a person or entity owning over 10 residential properties or more than 1,500 m² of residential floor space in Catalonia, or 5+ urban residential properties in a TRMA. Garages and storage rooms are excluded from the count.
Attention is required, as this definition differs from other legal definitions, such as that under Law 12/2023 (e.g. for rent control).
Exempt from the 20% rate:
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- Social housing developers (Art. 51.2 of Law 18/2007),
- Non-profit entities providing housing to vulnerable people/families,
- Purchases intended as the headquarters or workplace of the large holder.
Regarding entire building acquisitions, a person buying a building with up to 4 dwellings for their family’s habitual residence (up to 2nd-degree relatives) is exempt from the 20% rate.
100% ITP exemption is granted to housing cooperatives meeting the requirements of Article 144 of Law 12/2015 (non-profit status).
50% ITP reduction applies to:
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- Property used as a business/workplace headquarters.
- Office buildings or incomplete buildings to be converted to protected housing.
In both cases, a 50% reduction in notarial tax (AJD) also applies, provided the operation is subject to VAT.
There is a 100% AJD exemption on public deeds documenting a VAT-subject transaction for the purchase of a primary residence by a person under 35.
Finally, the 75% AJD reduction is reinstated for deeds of establishment of horizontal property by parcels (Art. 553-53 of the Catalan Civil Code), applicable to industrial/logistics parks, previously approved in Law 5/2020.
3. Resolution TER/607/2025 of 25 February on the registration procedure for land in the 2025 public housing land reserve
1. What is it?
A resolution calling on owners of land designated for protected housing to register in a census, in order to select developers and make such land eligible for aid to promote protected housing.
2. Key ideas
The resolution sets out a procedure for the registration of land classified as plots (i.e. fully urbanized), to identify potential land for protected housing, contributing to the objectives of the Generalitat’s “Plan 50,000”.
It lays the groundwork for understanding future aid to housing developers, though it does not define specific aid lines.
3. Commentary
The resolution seeks to establish a census of land likely to produce protected housing. The process mirrors that used for Next Generation EU aid, where eligible projects are first pre-selected and then awarded aid in a later phase.
Only fully urbanized plots are eligible, and they may be:
a) Public land with an assigned developer or where the authority will select one;
b) Public land to be developed by INCASOL;
c) Private land for rental or use-transfer housing.
Eligible lands must be in PTSH priority areas (Decree 408/2024, of 22 October), either in ADFA zones or with high demand and an identified developer.
Excluded from registration: land not ready for immediate licensing, land with slopes >20%, and land previously subsidized.
Land will be awarded in lots under concession (for dotational housing) or surface rights (for residential plots), with a maximum 75-year term.
A compensation to municipalities will begin in year 28 from final classification (i.e. when dwellings are market-ready). Allocation criteria will be agreed between the landowner and the operator.
Aid will be limited to rental projects, though exceptions allow for sale-oriented projects (20–100% of dwellings) depending on the area’s classification (zones 1–4), to encourage development in low-demand municipalities.
Conditions are imposed regarding maximum rents and pass-through costs, to avoid abusive practices.
Conditions for termination of the surface right or concession are included, in cases of non-compliance by the developer. In such cases, the Administration may assume the right or appoint a new holder.
Promoters will receive a rent subsidy and a subsidized loan (via ICF or other accredited entities).
Another (yet undefined) alternative is for the Generalitat to enter into long-term lease agreements with the developer, who would receive rent payments directly from the administration.
The resolution has been amended by Resolutions TER/1110/2025 (28 March) and TER/1469/2025 (23 April), introducing minor adjustments and extending the registration period.
We remain at your disposal to clarify or expand upon the content of this note and remind you that you can contact us at: dcn@clavellcanalsconstulting.com y
acc@clavellcanalsconsulting.com.