Spain's New 70% Rule: Does It Affect Private Buyers?
By Dmitry Mateshin, Founder
A housing decree published in October 2026 limits purchases below 70% of appraised value by certain entities. We explain who is covered, who is not, and why some sales are already slower.
In October 2026 Spain published a housing decree with a rule that has been widely reported and widely misread: until the end of 2030, certain buyers may not purchase residential property for less than 70% of its appraised value. The headline suggests a limit on discounts for everyone. The text is narrower. This guide sets out what the decree says, who it is aimed at, and what a private buyer should still check.
The short answer
On a plain reading of the text, the rule is aimed at entities and companies, not at individuals buying a home for themselves. A Madrid notary quoted in the Spanish press in mid-October takes the same view. That said, some scheduled sales have already been slowed by uncertainty and an extra valuation step, so it is worth understanding the rule before you negotiate. Whether it touches your own purchase is a question for your independent lawyer.
What the decree is
Royal Decree-law 29/2026 of 6 October 2026 was published in the official gazette (BOE) on 7 October and, according to press summaries, entered into force on 8 October. It is a reworked second attempt: an earlier version had been rejected in Congress at the start of the month. A decree-law applies from publication, but its continuation depends on a vote in the Standing Committee of Congress. Press reports as of 17 October expected that vote around 12 November. Until then, the rule applies as published.
What the rule says
Article 1 sets a limit that runs until 31 December 2030. Acquisitions of residential property, whether free of charge or for payment, are restricted when the price is below 70% of the market value set by an independent appraisal. That appraisal must be issued by a valuation company approved and registered with the Bank of Spain, and market value is fixed at the date of the binding agreement.
An example from the press shows the arithmetic: for an appraised value of €300,000, the floor is €210,000.
The rule does not ban negotiation. The press summaries we read stress that it does not forbid negotiating a discount or buying below an asking price. It sets a floor measured against the independent appraisal, for the buyers it covers, and not against the asking price. A second illustration, using assumed figures: for an appraised value of €400,000, the floor is €280,000 (70% of €400,000). A covered buyer paying €300,000 is above the floor. A covered buyer paying €250,000 is below it. The same home, bought by a buyer outside the rule, can be negotiated as usual.
Who is covered
The text names two groups:
- Entities that buy property, or portfolios of defaulted mortgage loans, at a clearly lower price than the market appraisal, whether or not they have legal personality.
- Legal persons that are "large holders", together with entities in their group or acting on their behalf. Under the amended definition, a large holder owns more than ten urban residential properties or more than 1,500 m² of built residential space. In areas declared as stressed housing markets, regional authorities can lower the threshold to five properties.
The wording refers to entities and legal persons, not to individuals. A notary quoted in the press argues that private individuals, including professional buyers and sellers, should fall outside the restriction.
What it means for sellers
If you are selling, the practical effect is limited to the case where your buyer is a covered entity. In that case expect a valuation step before the deed, a possible wait for an approved valuer, and a price that cannot fall below the floor. If your buyer is a private individual, the rule should not change the sale, but ask your lawyer to record who the buyer is and how the purchase is funded.
What is excluded
The decree lists exclusions. Among them: public-sector bodies focused on social and affordable housing, purchases of a home for habitual residence at affordable or social prices held for at least seven years, socio-health residences, residences for vulnerable groups run by third-sector entities, shelters for victims of gender violence, purchases already formalised in a public deed before the rule, and acquisitions arising from court-ordered auctions and foreclosures.
Why some sales are already slower
A Madrid notary told the Spanish press that some scheduled sales have been paused because of uncertainty over the rules and the new valuation requirement, and that in some cases buyers face extra costs above €1,000, including on purchases without a mortgage. The developers' association in Madrid criticised the government for not consulting the sector. These are reports of early effects, not a measure of how the rule will work in practice.
What a private buyer should check
- Who is buying. If you buy in your own name, ask your lawyer to confirm in writing that the rule does not apply to you. If you buy through a company, ask whether the company or its group holds more than ten residential properties.
- What the price is relative to value. If your offer is far below the asking price, ask whether an appraisal is required in your case, who commissions it and what it costs.
- When the deed is signed. The rule depends on the date of the binding agreement. Ask your notary how the valuation date is set.
- Which version applies. The decree stays in force only if the vote goes ahead and succeeds. Ask your lawyer what happens to a signed contract if the rule changes.
Reading the rule correctly is the first step. If you want help with a search, the process or the coordination of lawyers and notaries, see How We Work, or browse the Collection to see homes at your budget. For the full buying sequence and purchase costs in Andalusia, read our buying guide, and for the separate story about the proposed 100% tax on non-EU buyers see where it stands in 2026.
This guide is general information, not legal or tax advice. Rates and rules change; confirm current figures with your independent lawyer or gestor before you commit.
