Omnibus Law

Last March, the Omnibus Law (Law 5/2025 of March 6, for sustainable growth and the right to housing) was approved. This Law proposes essential changes to protect the right to housing. This article aims to analyze the most significant changes implemented by the aforementioned Law.

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- Foreign investment is limited so that non-resident foreigners will only be able to purchase one villa-type home or two apartment-type homes. In addition, at least 50% of the apartments in new developments must be at affordable prices. On the other hand, foreign investment no longer guarantees a link to a residence permit.

- New real estate developments must have at least 50% of the homes at an affordable price.

- The Property Transfer Tax (ITP by its catalan acronym) will not apply  to the purchase of a first home up to €600,000, thereby facilitating first time home ownership.

- Increase in capital gains by 10% if the home is sold before 2 years and by 5% if it is sold between 2 and 5 years. In this way, the aim is to create measures to fight speculation.

- Restrictions on short-term tourist rentals (HUTs by its catalan acronym). The issuance of licenses for new HUTs is suspended. As for the renewal of already established, those that do not occupy at least 30% of the total units in a building will be restricted, and stricter criteria will be applied to all other renewal applications.

- Owners who rent their homes for less than €9 per square meter and €1,250 per month will have a 10% reduction in personal income tax and corporate income tax.

- The Government, at the request of the owner, will be able to manage empty apartments for 5 years and the owner will be responsible for managing the rent at an affordable price. Likewise, if the apartment needs renovations, the costs of these will be advanced and deducted from the rent.

- The penalties are tougher for those who recover a home fraudulently (claiming personal use or that of a family member).

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Ian Ballesté Miquel

jurist