Government extends restrictions on certain property purchases below 70% of market value until 2030

The Government has approved a new housing decree extending until December 31, 2030 the restrictions on certain acquisitions of properties for less than 70% of their market value. The measure tightens and clarifies a regulation that, in its previous version, had an expiration date of December 31, 2028, and was rejected by Congress, according to the available reports.

The change is of particular interest to companies that purchase residential assets, mortgage debt portfolios, or homes linked to large property holders. However, the Government’s announcement does not in itself constitute a rule with definitive effect: the decree must complete parliamentary proceedings, and its final wording should be checked before determining how it applies to a specific transaction.

Which transactions and entities are covered by the new wording

The restriction applies to entities engaged in acquiring properties and expressly extends to those that purchase portfolios of non-performing mortgage loans below their market value. It also covers legal entities considered large property holders under state housing legislation, as well as companies in the same group or acting on their behalf.

Cinco Días’s reporting specifies that the reference to large property holders includes companies with more than ten homes. The scope must be read in accordance with the applicable legal definition and the decree’s final wording; a company’s involvement in a real estate transaction alone is not enough to conclude, without further analysis, that it is covered.

According to published information, the rule covers acquisitions by way of gift or for consideration, and applies both to homes in use and to certain homes in residential buildings that meet the requirements for obtaining an occupancy permit and have a certificate of completion of works.

Independent valuation and calculation of the effective price

To determine whether the price falls below the threshold, the decree requires a valuation by an approved and independent company, registered with or authorized by the Bank of Spain, according to the sources’ description. The report must substantiate the market value and be provided by the purchasing party. The valuation is made as of the date of the binding agreement.

The rule also clarifies what constitutes total effective consideration. The calculation would not be limited to the amount stated as the purchase price: it would include, among other items, debts assumed by the buyer, ancillary benefits, and financial advantages directly or indirectly linked to the transfer. The stated regulatory objective is to prevent a transaction from appearing to exceed the threshold merely because some of its value has been shifted to other items.

Exceptions subject to conditions

The available reports describe exceptions for acquisitions intended for affordable or social housing, residences for people who need social and health care, and accommodation for vulnerable groups or victims of gender-based violence. In the case of affordable or social housing, the new text would require that purpose to be maintained at least until December 31, 2030; public bodies dedicated to promoting social housing would be covered by this regime.

An exception is also provided for entities that adhere to a Code of Good Practices. Compared with the previous version, the code would have to be approved by the Council of Ministers, and entities would have to demonstrate both their adherence and effective compliance. According to Servimedia, the exceptions could not be applied until the code had been approved and entered into force.

The decree links some of these exceptions to the protection of vulnerable residents: when an entity covered by them acquires or is awarded, for less than 70%, a home used as a primary residence by a vulnerable person with no alternative housing, eviction would be suspended until December 31, 2030. The practical scope of this provision and its conditions will depend on the final legal text.

Government approval and entry into force are not the same

The Minister of Housing, Isabel Rodríguez, presented the measures after their approval by the Council of Ministers and called for parliamentary support. Reports place the text at the parliamentary proceedings stage, with a vote scheduled in the Permanent Deputation of Congress. Government approval must therefore be distinguished from parliamentary ratification and publication of the final version.

For companies operating in the real estate sector, the points to monitor in the final text are the precise definition of the entities subject to the rule, the valuation method, the items included in the calculation of consideration, the requirements for exceptions, and the date from which each provision would apply. The available information describes the announced framework, but does not replace a review of the rule as ultimately approved or, by itself, determine how a particular transaction would be treated.