Investment approach
Real Decreto-ley 29/2026: buying housing below 70% of market value
Article 1 of RDL 29/2026 limits, until 2030, buying housing below 70% of market value by entities buying at clearly below appraisal and by gran tenedor. Status on 13.10.2026 is provisional.
Article 1 of Real Decreto-ley 29/2026 (Royal Decree-law 29/2026) limits, until 31 December 2030, buying housing at a price below 70% of market value for two groups: entities that acquire property or non-performing mortgage portfolios at a price "clearly below" appraised value, and legal entities with gran tenedor status (large holder of housing) (BOE-A-2026-20823). The act was published on 7 October 2026 and has applied since 8 October. As of 13 October 2026 Congress has not validated it, so its status is provisional: it can be validated, amended or repealed, like the two previous acts on the same subject. For a flipper, the first question for the abogado (lawyer) is whether their SL falls into one of the two groups. The price is calculated only after that.
What exactly does Article 1 restrict?
There is no general ban on buying cheaply: Article 1 speaks of limiting the acquisition (limitada la adquisición) of housing, in a transaction for consideration or free of charge, where the consideration is below 70% of market value. Market value is determined by an independent appraisal company (sociedad de tasación) approved and entered in the Bank of Spain register, as at the date of the binding agreement; the buyer must submit the report. The rule covers housing in use and housing in new buildings on residential land that can obtain a cédula de habitabilidad (habitability certificate), from the moment the certificado de fin de obra (completion certificate) is issued.
The text of Article 1 does not say what happens to a transaction that breaks the rule: nullity, refusal of registration, a fine. The consequences need to be clarified with the abogado, not guessed.
Who is caught by the restriction?
Two groups, and the second is defined by law, not by line of business.
- Any entity, with or without legal personality, "dedicada a adquirir" (dedicated to acquiring) property or portfolios of defaulted mortgage loans at a price clearly below appraised market value.
- Legal entities with gran tenedor status under national housing legislation, their group, and those acting on their instruction.
Gran tenedor in Ley 12/2023, as amended by RDL 29/2026 itself (Article 4), means an owner of more than ten urban residential properties or more than 1 500 m² of residential floor area excluding garages and storage rooms. In a tensioned-market area (zona de mercado tensionado) the autonomous community may lower the threshold to five properties if it gives reasons. Status is confirmed by a certificate from the Registro de la Propiedad (Property Registry), and a building with several dwellings is counted by unit, even without registered horizontal ownership. An SL with a small number of properties does not reach the threshold of the second group (more than ten properties or more than 1 500 m², and in a tensioned-market area, with justification, from five). The main question in the first group: "clearly below" is not defined in the text, and whether an SL that regularly buys flats from sellers in difficulty is included is for the abogado to decide, not the reader.
How is the 70% calculated?
The threshold is calculated on the sum of everything the buyer pays and promises, not on the price in the escritura (public deed). "Total effective consideration" is defined as the sum of all payments, assumed debts, additional obligations and property benefits of the buyer or related persons. Worked example, not a forecast: appraisal of 1 M€, threshold of 700 000 €.
| Scenario | Price in escritura | Assumed debts and extra payments | Total | Share of appraisal | Below 70% |
|---|---|---|---|---|---|
| A | 720 000 € | 0 | 720 000 € | 72% | no |
| B | 680 000 € | 0 | 680 000 € | 68% | yes |
| C | 650 000 € | 60 000 € | 710 000 € | 71% | no |
In scenario C the price in the contract is below the threshold while the total is above it. Payments outside the escritura also count if they are linked to the transaction: what matters is everything the buyer or related persons pay and promise.
What exceptions are provided?
Article 1 does not apply if the purchase is for:
- permanent housing at an affordable or social price until at least 31 December 2030 (the preamble speaks of a minimum of seven years; this discrepancy is worth clarifying with the abogado);
- housing for people who need social and health care;
- housing for vulnerable groups provided by third-sector organisations;
- protection of victims of gender-based violence.
It also does not apply to buyers who have confirmed their adherence to the Código de Buenas Prácticas (Code of Good Practice) or to public bodies building social housing. But the code has yet to be approved: until it enters into force, these exceptions do not operate. Transactions formalised in an escritura before the act entered into force are not affected (even if registration comes later), with no right to change them by addenda.
What is still unknown?
Three things. Whether the act becomes law: Congress repealed three earlier housing decrees, RDL 8/2026 in April, RDL 26/2026 (same title as RDL 29/2026) and RDL 27/2026 on 2 October 2026, and RDL 29/2026 is not validated as of 13 October (timeline). How "clearly below" will be interpreted. And what follows from a breach. For a project this comes down to a contract clause: what happens to the purchase if the act is not validated or is amended, and who bears the cost of the appraisal.
Who should not rely on this article?
Anyone looking for the conclusion "flipping is banned": the restriction concerns a price below 70% and two groups of buyers, not buying to renovate and resell as such. Anyone who needs a ready-made interpretation: the text does not define "clearly below", and a summary of the article does not replace the abogado's opinion. Anyone who expects the make-up of the buyers to change the picture: the text names entities of the same group and those acting on instruction, and payments by related persons are counted when calculating the price. The tax side of gran tenedor status in Catalonia (ITP rate of 20%) is covered separately: ITP for gran tenedor and gran tenedor obligations.
Project structure, appraisal and the conditions for unwinding if the act is repealed are agreed in the contract for the specific project; how residential properties are handled is described on the residential property page, and the general regulatory background is in the article on regulatory risk in Catalonia.
Questions and answers
Does RDL 29/2026 ban buying flats below market value?
No, it only limits buying at a price below 70% of market value for entities that specialise in buying at clearly below appraisal and for legal entities with gran tenedor status. The first group is described in the text as an "entidad" (entity); whether a particular buyer is included is for the abogado to decide on the facts.
Who counts as gran tenedor under this act?
An owner of more than ten urban residential properties or more than 1 500 m² of residential floor area excluding garages and storage rooms; in tensioned-market areas the autonomous community may lower the threshold to five properties. This definition is introduced by Article 4 of RDL 29/2026 itself, so its fate depends on validation.
Who determines market value?
An independent appraisal company entered in the Bank of Spain register, as at the date of the binding agreement. The buyer submits the report.
Until when does the restriction apply?
Until 31 December 2030, unless the act is repealed or amended earlier. As of 13 October 2026 Congress has not validated it.
Does the restriction affect transactions already signed before a notary?
No, for transactions formalised in an escritura before the act entered into force, even if registration comes later. After entry into force, such an escritura cannot be changed or supplemented by addenda. Whether it applies to a specific transaction is checked by the abogado.
