Thresholds for large property holders

Under Article 3.k) of Spain's Housing Law, a large property holder is defined as an individual or legal entity owning more than ten urban residential properties, or more than 1,500 square metres of built residential area, excluding garages and storage rooms. These two criteria are alternative: meeting either one triggers the classification. Royal Decree-Law 29/2026, in force since 8 October 2026, reinforces this definition and requires property owners to provide certification from the Property Registry to prove their status.

Lower thresholds in high-pressure areas

In areas officially declared as stressed residential markets, the threshold can be reduced. Autonomous communities have the authority to classify such areas if either of two conditions are met: average housing costs exceed 30% of average household income, or housing prices have risen by at least 3% more than the Consumer Price Index over the past five years. In these zones, owning five or more residential properties is enough to be considered a large property holder, regardless of total square footage.

Large property holders face specific obligations under the new rules. They must accept an extraordinary rental extension of up to two years when tenants meet the conditions of social and economic vulnerability, provided no legal exception applies. Additionally, until 31 December 2030, large landlords are restricted from purchasing properties above 70% of their market value as determined by an independent appraisal. This restriction aims to prioritise access for first-time buyers and smaller investors.

Transparency and compliance

When renting in a stressed area, owners or intermediaries must inform prospective tenants that the property is located in such a zone. They must also disclose the previous rent for the unit over the past five years and provide the reference value according to the applicable rental price index. These measures are part of broader efforts to increase transparency and fairness in Spain’s rental market, particularly in regions facing acute housing pressure.

Reported by elconfidencial.com, ortiz-abogados.com, El Confidencial.