Catalonia to impose fines of up to €900k for violating rent cap

The Catalan government and the left-wing Comuns reached an agreement on Monday to implement a sanctions regime under the housing law.

The agreement includes fines of up to €900,000 for serious violations. These violations include setting rental prices that exceed the legal limits by more than 30%.

Other offences include failing to specify the purpose of rental contracts or using them for fraudulent purposes. This includes landlords who use short-term leases to circumvent rent caps.

In addition, landlords who charge tenants for management costs will also face penalties.

The government is expected to approve the decree this week, although it still needs parliamentary approval. If passed, the sanctions could go into effect as early as Wednesday.

The announcement was made on Monday following a meeting between the two parties, represented by housing minister Sílvia Paneque and Comuns leader Jéssica Albiach.

The approval of these sanctions is part of the agreement between the two parties to secure Socialist Salvador Illa's bid for the Catalan presidency.

Jèssica Albiach described the new measures as a "triple protection" for housing regulation, emphasizing that the decree is an "essential tool to ensure compliance with the law and to prevent fraud from being profitable."

Comuns MP Susanna Segòvia said that despite the rent caps, landlords had been looking for "loopholes" to avoid applying the law. She added that the new sanctions are intended to send a "deterrent" message to landlords trying to circumvent the rules.

The announcement comes just days before the expected eviction of Casa Orsola, an apartment block in central Barcelona where residents are refusing to leave their homes after the property was purchased by an investment fund that intends to convert it into short-term rentals.

In response to the news, the Tenants' Union, which has been at the forefront of massive protests for housing rights, has called on the government to allocate resources to ensure the sanctions are enforced. 

In a message to X, the union said the government must be "swift and proactive" in "controlling and sanctioning" breaches of the law, and has called for "inspectors" to ensure it is enforced. 

"No tenant must be afraid to defend their rights, and we will not allow any landlord to trample on them," they added.