Turn of events: New Law demolished.

On April 24th; 2024, the Generalitat of Catalonia approved a decree-law aimed at regulating temporary and room rentals, subject to ratification by the Parliament within a period of 30 days. After the elections in Catalonia, there was a turn of events and the new law was demolished. The Parliament repealed this decree-law, with Junts voting against it and the PSC abstaining, necessary support for its implementation.

The decree-law proposed by the Government of the Generalitat, under the direction of Pere Aragonés, sought to regulate temporary and room rentals to prevent them from evading price restrictions in areas with high demand, a trend that was growing and causing uncontrol in the proliferation of this type of rentals. Since rental price regulation came into force in Catalonia, many owners have resorted to seasonal rentals (theoretically designed for specific stays) to avoid income containment. At some times, these contracts have taken up to 90% of the offer on real estate portals. The decree, which the Government approved a month ago, had to be validated to remain in force: it contemplated that only rentals for vacation, work, or study reasons could be temporary and also regulated the rental of rooms.

Turn of events: The regulation of temporary rentals and rooms in Catalonia is demolished.

The support of the PSC and Junts was essential for the definitive implementation of the measure, as they are part of the Permanent Deputation of the Parliament. Junts voted against it, arguing that, although it was necessary to regulate these rentals, they objected to the way it was proposed, anticipating possible legal challenges. On the other hand, the PSC abstained, waiting for the formation of a new government led by Illa, stating that the next Executive could improve regulation since the initial decree-law did not offer sufficient legal certainty.

Despite this, the decree-law received the support of ERC, Comuns, and the CUP, but also faced votes against the PP, VOX, and Ciutadans.

Regarding the proposed measures to regulate temporary and room rentals, the decree-law established that in areas with high demand, rental contracts must specify their purpose; otherwise, they would automatically be considered rentals of habitual residence.

  • Temporary rental was defined as rental intended for leisure, vacation, recreation, or cultural purposes, excluding price control measures. These measures would apply to rentals for professional, work, study, and medical care purposes, among others, considered as habitual housing needs and, therefore, not temporary.
  • Regarding the rental of rooms, the total sum of the rent for these could not exceed the maximum rent that would apply if the entire home were rented.
  • Financial sanctions were agreed upon for those owners who failed to comply with these regulations, with fines ranging between 3,000 and 900,000 euros, depending on the severity of the infraction.

After this turn of events with the proposed new law demolished, and given the elections in Catalonia, the regulation of temporary and room rentals could be delayed until the end of the year, pending the constitution of a new Parliament and Government of the Generalitat.

Stay tuned for more information on the Spanish Market Trends by visiting our blog and social media.

Want to learn more about the different rental contracts in Spain? Head over to our blog entry here.

Looking for updates and trends on the Spanish Rental Market? Search here.