The Spanish Law 12/2023 on the Right to Decent Housing introduced several modifications, including the concept of the “Large Landlord.”

What is a Large Landlord?

A “Large Landlord” is any individual or legal entity who owns more than ten urban properties for residential use or a built area of more than 1,500 m² for residential purposes.

<< k) Gran tenedor: a los efectos de lo establecido en esta ley, la persona física o jurídica que sea titular de más de diez inmuebles urbanos de uso residencial o una superficie construida de más de 1.500 m² de uso residencial, excluyendo en todo caso garajes y trasteros. Esta definición podrá ser particularizada en la declaración de entornos de mercado residencial tensionado hasta aquellos titulares de cinco o más inmuebles urbanos de uso residencial ubicados en dicho ámbito, cuando así sea motivado por la comunidad autónoma en la correspondiente memoria justificativa. >>

Being classified as a Large Landlord initially carried two main implications:

• Price restrictions on new rental contracts in “stressed” residential areas.
  
• Two conditions that had to be met prior to filing for eviction (desahucio) lawsuits and before proceeding with judicial auctions of real estate:
  
  – Proving whether the defendant was in a vulnerable situation or not (by having at least approached the competent housing or social services and not received a response within two months).
  
  – Undergoing a mediation or conciliation process, or having requested it from the competent services without receiving a response within two months from the date of request.

Why was a Constitutional challenge filed against these requirements?

Shortly after the law was published, 136 members of the Spanish Congress filed a constitutional challenge against numerous provisions, including those requirements for admitting eviction lawsuits and executing judicial property auctions.

The Constitutional Court resolved this challenge in January, nullifying those requirements effective February 28, 2025—the day its judgment was published. The Court held that these conditions amounted to excessive barriers to initiating legal proceedings, and that protecting vulnerable individuals and households could be accomplished through other mechanisms. Specifically, it noted there are immediate procedures to inform defendants of the possibility of turning to the relevant public authorities, and that the court itself can officially notify those authorities of the lawsuit, thereby verifying any vulnerability and offering suitable housing alternatives and immediate assistance.

How is protection for vulnerable individuals guaranteed now?

Protection remains in place through a process initiated automatically by the court (de oficio). The defendant is informed of the possibility of seeking help from the competent public authorities (regional and local) in matters of housing, social services, and immediate care. At the same time, the court immediately notifies those authorities about the lawsuit so they can verify any situation of vulnerability. If the defendant is found to be vulnerable, authorities must propose dignified housing alternatives—social rental options, immediate assistance, as well as possible subsidies and financial aid.

Article 441.5 of the Spanish Civil Procedure Act (LEC)

«En los supuestos correspondientes, siempre que el inmueble objeto de la controversia constituya la vivienda habitual de la parte demandada, se informará a esta de la posibilidad de acudir a las Administraciones Públicas competentes en materia de vivienda, asistencia social, evaluación e información de situaciones de necesidad social y atención inmediata. La información deberá comprender los datos exactos de identificación de dichas Administraciones y el modo de tomar contacto con ellas, a efectos de que puedan apreciar la posible situación de vulnerabilidad de la parte demandada.

Sin perjuicio de lo anterior, se comunicará inmediatamente y de oficio por el juzgado la existencia del procedimiento a dichas Administraciones, a fin de que puedan verificar la situación de vulnerabilidad y, de existir esta, presentar propuesta de alternativa de vivienda digna en alquiler social y medidas de atención inmediata, así como informar de posibles ayudas y subvenciones.
En caso de confirmarse la vulnerabilidad, se notificará al órgano judicial a la mayor brevedad y en todo caso en el plazo máximo de diez días.

Cuando la parte actora sea gran tenedora y hubiera presentado junto con la demanda documento acreditativo de la vulnerabilidad de la parte demandada, se hará constar esta circunstancia en la comunicación a dichas Administraciones para que, en el mismo plazo, realicen directamente la propuesta de medidas de atención inmediata, ayudas y subvenciones.

Recibida dicha comunicación o transcurrido el plazo, el órgano judicial dará traslado a las partes para que en el plazo de cinco días puedan instar lo que a su derecho convenga, suspendiendo la fecha prevista para la vista o para el lanzamiento de ser necesaria tal suspensión por la inmediatez de las fechas.»

What is the current status for Large Landlords?

At present, large landlords are on the same footing as other landlords when it comes to filing eviction lawsuits or initiating judicial sales and auctions. They are no longer required to provide evidence of the defendant’s vulnerability or submit to prior mediation. Instead, courts now take charge of verifying potential vulnerability and coordinating any necessary social or housing measures. This ensures that if a tenant is in a vulnerable situation, the court will promptly engage the relevant public authorities to protect and assist them.