Decree Law 2/2025, in effect from February 26, 2025, brings major changes to Catalonia’s housing and urban planning legislation, expanding the government’s pre-emptive right to purchase certain properties.
The Catalan Government (Generalitat) can now exercise its right of first refusal and buyback in the following cases:
- Property sales in high-demand housing areas when the seller is a legal entity classified as a “large property holder“.
- Properties awarded through administrative or court auctions.
These new provisions add to existing ones covering foreclosures or debt settlements involving mortgage-backed properties.
Who qualifies as a “large property holder”?
- Any individual or company that owns more than 10 residential units or more than 1,500 m² of residential space in Catalonia, or
- Owns 5 or more residential properties in designated high-pressure housing markets.
- Garages and storage units are excluded from this count.
Exemptions:
The Generalitat will not exercise its purchase right if the buyer is an individual who:
- Is registered as a candidate for affordable housing,
- Applies for official protection status within one month, and
- Uses the property as a primary residence for at least 10 years.
All homes acquired by the Generalitat under this scheme will be permanently classified as affordable housing—even if they exceed price limits set for such properties.
Note: Although the official registry of large property holders is still being developed, sellers must provide a certificate showing how many properties they own at the time of sale.
Tax Reforms Under Decree Law 5/2025 (Effective June 27, 2025)
It introduces changes to the Property Transfer Tax (Impuesto sobre Transmisiones Patrimoniales, ITP) and the Stamp Duty (Impuesto de Actos Jurídicos Documentados, AJD).
As for the ITP, the applicable rates on the transfer of real estate and the establishment of real rights are increased, with the introduction of new progressive brackets:
- Up to €600,000: 10%
- €600,001 – €900,000: 11%
- €900,001 – €1,500,000: 12%
- Over €1,500,000: 13%
Large holders and buyers of entire buildings face a 20% rate (with limited exceptions based on the buyer’s profile).
It also establishes a 20% rate for the purchase of real estate by large property holders and for the acquisition of entire buildings intended for residential use, with certain limited exceptions depending on the nature of the purchaser.
There are also changes to reduced rates. For the 5% rate applicable to young people purchasing their primary residence, the age threshold is increased: buyers can now benefit from this rate up to the age of 35, although the income limit remains set at €36,000 (after applying for personal and family allowances). A new 5% rate is also introduced for victims of domestic violence.
New allowances are introduced:
- 100% exemption for non-profit housing cooperatives that meet the requirements of Article 144 of Law 12/2015.
- 50% reduction for the conversion of office buildings or unfinished structures into social housing, and for the acquisition of real estate to be used as a company’s registered office or workplace, provided certain conditions are met.
The 70% allowance previously granted to real estate companies acquiring homes for resale within three years is eliminated. This measure came into effect on 27 March 2025.
In the case of the Stamp Duty (AJD), the applicable rate for deeds documenting the acquisition of real estate where the VAT exemption is waived is increased to 3.5%, up from the previous 2.5%. New allowances are also introduced:
- 100% exemption for the purchase of a primary residence by individuals up to 35 years old, provided their taxable base does not exceed €36,000 (after applying personal and family allowances).
- 75% exemption for the creation of horizontal property regimes in industrial and logistics parks, applicable until 31 December 2027.
- 50% reduction for the conversion of office buildings or unfinished structures into social housing, and for the acquisition of real estate to be used as a company’s registered office or workplace, provided certain conditions are met.
At addwill, we understand the complexity of these new regulations. Our team of experts from the civil-real estate department is at your disposal to provide all the information and advice you need on this topic. You can leave your inquiry by clicking here.