Judicial victory for large holders: we will not know who they are
The Supreme Court ruling puts sticks in the wheels of the Generalitat's Registry
BarcelonaLarge housing holders are in the political and social spotlight, in the face of the serious housing crisis suffering in Catalonia (and the rest of Europe). The Government has the decree to create the Registry of large holders in the oven, which Parliament approved creating in March 2022. According to the draft, which is still pending final approval, and to which ARA has had access, the Housing Agency wants to be able to publish on its website the corporate name – the equivalent of the name – and the NIF (tax identification number) of legal entities that are considered large holders.
It seems it will not end up being that way. In a ruling consulted by ARA, the Supreme Court has decided that revealing this data, which affects legal entities, not natural persons, who are protected by the data protection law, represents a "prejudice to public safety". With the corporate name and the NIF of the large holder, anyone can perform a search in the Property Registry and obtain the exact address of the apartments in the hands of that legal entity, a fact that, according to the high court, increases "in a relevant way the risk of illegal occupation".
"It may consist of the generation or the increase of a risk to persons or property, even if actual damage does not occur", it warns. According to a 2020 report by Obra Social Bcn, 82% of the squatted apartments in Catalonia were owned by large holders. Although the Registry of large holders is not yet active, they are currently required to notify their status to the Housing Agency of Catalonia through a form on its website.
A journalist's request
The conflict over public knowledge of data on large property owners has ended up in the hands of the Supreme Court following a transparency request from a journalist at the digital outlet Crític. The Government agreed to give him the list of large property owners, a decision that the Property Chamber took to the High Court of Justice (TSJC), which ruled in its favor. The Generalitat appealed against the TSJC verdict before the Supreme Court, which has ratified it. When asked by ARA, the Department of Territory did not comment on the judicial resolution.
"This ruling says that what we will not know are the names of the large property owners, but we will have the anonymized information on how many there are in Catalonia," explained the lawyer for the Property Chamber, Ana Just. In her view, the Generalitat will have "to modify" the draft decree it has prepared to launch the Registry. The Supreme Court's decision does not affect individuals who are large property owners, because they are protected by data protection law.
Who are large property owners, and what does it imply?
According to the Housing Law of Catalonia, in which regulatory modifications from recent years have been incorporated to address the housing crisis plaguing the country, large property holders are financial institutions, investment funds –popularly known as vulture funds– and natural and legal persons who own or have the right to exploit five or more properties in Catalonia. The Catalan administration tightened the state regulation, which sets the threshold at ten dwellings. In the draft decree to create the Registry of large property holders, the Generalitat argues that it will help ensure that properties "favor the interest and social function" for which they were created.
Beyond this measure, large property holders are subject to other restrictions, such as an increase of up to 20% in the transfer tax and the fact that the rent can never exceed the price index, even if it was previously above it. Furthermore, if they offer a dwelling in a stressed residential market area (ZMRT), they must state their status as a large property holder, as well as in the lease agreement.