Catalan government and Comuns strike 2026 budget deal

The Catalan government has cleared the first hurdle toward passing a budget for 2026: securing an agreement with left-wing Comuns that includes a ban on speculative property purchases in high-pressure housing areas.

President Salvador Illa and Comuns parliamentary leader Jéssica Albiach signed the agreement at 11:00 am on Thursday at the Palau de la Generalitat in Barcelona.

The pact moves the Socialist government closer to its goal of passing the budget, though it still remains 20 seats short of a majority in Parliament.

Attention now turns to pro-independence Esquerra Republicana (ERC) to see whether it will open formal budget negotiations and provide the votes required.

"First step"

The Catalan government described the agreement as a "first step" toward approving the 2026 budget.

Government sources said it emphasizes "bold housing policies and improvements to essential public services," and that the budget is "necessary to advance Catalonia toward greater welfare and a more shared economic and social prosperity."

President Illa called the pact a "step forward for everyone," aiming to reinforce public services and improve the lives of Catalans, while economy minister Alícia Romero described it as "centered on strengthening public services and housing" and "a first step toward a much-needed budget."

Property purchases

Under the agreement, changes to the Urban Planning Law will restrict so-called large property owners from acquiring homes in designated high-pressure housing areas.

The text, first reported by broadcaster SER Catalunya, allows other property owners to buy properties and rent them out, provided they comply with rent caps.

Exceptions for large property holders include purchases for personal use as a primary residence, as well as the acquisition of an entire building intended for long-term rental, as long as rent caps are respected.

It will also "exceptionally" allow the purchase of a "single second residence" in a municipality other than the owner's primary home.

In cases where a property is inherited, if it is not used as a residence by the owner or a first-degree relative, it must be placed on the long-term rental market in accordance with applicable rent control rules.

Tenants' Union and property sector at odds

The Tenants' Union (Sindicat de Llogateres) praised the recognition that "homes are for living in, not for speculation" but warned the pact has "serious limitations."

The union criticized the absence of mechanisms to prevent entire buildings being bought and quickly resold.

Meanwhile, the real estate sector has questioned the agreement.

The manager of the Cambra de la Propietat Urbana de Barcelona (Barcelona Chamber of Urban Property), Òscar Gorgues, described it as a "far-left populist" pact and warned that the regulation could face "constitutional legal issues" because it involves powers reserved for the state.

Rent support

On Wednesday, as part of the 2026 budget negotiations, the government and Comuns agreed to increase funding for rental subsidies by €106 million, a move expected to benefit nearly 50,000 additional families.

Under the agreement, first reported by Catalunya Ràdio and confirmed by the Catalan News Agency (ACN), the income threshold for eligibility will rise from €25,200 to €36,279 per year, prioritizing "families that spend more than 30% of household income on rent."