New restrictions on cut-price property purchases by certain investment entities and corporate landlords are already holding up transactions in Spain, a Madrid notary has warned.
Juan Jose de Palacio, of Serrano 30, told idealista that scheduled sales had been paused amid uncertainty over the rules and additional valuation requirements.
In some cases, he said, buyers were facing extra costs exceeding €1,000, including on purchases that do not involve a mortgage.
‘There were sales scheduled to be completed that have been halted,’ he told the publication.
What has changed?
Royal Decree-law 29/2026 restricts certain entities from acquiring homes for less than 70% of their independently assessed market value.
It covers entities specialising in buying heavily discounted properties or distressed mortgage portfolios, corporate owners qualifying as large property holders, and related entities.
The legislation requires the buyer to provide an independent valuation from a valuation company approved and registered by the Bank of Spain. The restriction is scheduled to run until December 31, 2030.
For example, where the relevant assessed value is €300,000, the 70% threshold would be €210,000.
The measure is not a blanket ban on negotiating discounts or buying below an asking price.
What about individual buyers?
De Palacio argues that individuals should fall outside the restriction, including those who buy and sell property professionally.
He told idealista that the wording targets corporate large property holders and the different structures used by investment funds.
The distinction matters for buyers considering whether to purchase personally or through a company, although a company purchase alone does not establish that the restriction applies.
Valuations creating a bottleneck
According to the notary, the need to obtain an approved valuation is creating delays and additional expense.
He also said the assessment should reflect the circumstances of the particular property. Where unlawful occupation reduces its market value, for example, he argues that the reduced valuation should form the basis of the calculation.
Madrid developers’ association Asprima has criticised the government’s approach, saying the sector was neither consulted nor adequately informed before the measures were introduced.
