Recently, I received an interesting comment on one of my YouTube videos. A viewer asked about Spain Tourism Protests, reports of Spaniards “attacking” foreigners and how it could affect their decision to buy a property in Spain. It’s a concern many potential buyers have, especially with the sensational news stories that circulate… But the real issue behind these tensions isn’t what it seems at first glance.
Let’s dig deeper into what is actually happening and how the government’s policies are playing a (protagonist) role in this.
The primary issue behind rising frustrations in Spain is not foreigners buying properties or tourist rentals, but the government’s inability to address the housing crisis in its major cities. Rents in areas like Barcelona, Madrid, Valencia, Malaga and the islands have been steadily increasing. This has caused frustration among locals who feel priced out of the rental market. But instead of addressing the root cause, the Spanish government has enacted policies that leave no other choice to landlords than to favour short-term rentals, further aggravating the housing shortage.
One of the biggest culprits is the “Ley de la Vivienda” (the Housing Law), issued in May 2023—a law that regulates long-term rentals. The law forces property owners to rent at lower, government-regulated rates (in “tense” areas, where prices are higher, such as the city centres). Additionally, it protects tenants who stop paying the rent, making it almost impossible for landlords to evict them.
Aside from the fact that anyone with a basic understanding of economic history knows that regulating market prices has always had disastrous consequences, this law also further adds to the issue of the illegal occupation that was already a big problem which was never addressed, on the contrary, it was encouraged by the government. For example, if you own a beautiful historical flat in central Barcelona, you could earn around €2,500 per month renting it to medium-term tenants (2-11 months) or significantly more renting it to tourists during the peak seasons. But under the new law, you’d be expected to rent it out for a fraction of that—around €780 per month. And if your tenant stops paying? Good luck trying to evict them. It’s no surprise that many property owners are switching to tourist rental, medium-term rental, or selling their flats altogether, leaving even fewer properties available for long-term rent.
And this does not happen only in the city centres. It happens everywhere in the country.
Since the Housing Law was issued, rental prices have increased on average by over 10% and the supply of long-term rentals has dropped by 40%.
Coincidence?
Spain’s tourism industry has always been its crown jewel. Spain is surpassing France as the world’s most visited country. With its pristine beaches, world-class golf courses, vibrant cities, and rich cultural heritage, it’s no wonder millions of tourists travel here every year. Tourism is a massive contributor to Spain’s economy, generating jobs, supporting local businesses, and sustaining entire regions.
However, rather than protect this vital industry, the government has shifted the blame for rising prices and the lack of rental flats onto tourism. In the demonstrations in the main cities and on the islands, locals have wrongfully turned their frustration toward tourists. In one incident, protesters even sprayed water on tourists dining in Barcelona. Incidents like these are rare and isolated, Spaniards are generally very peaceful people, but they do not reflect well on the country’s image
The reality is that tourism isn’t the problem; it’s part of the solution. If Spain loses its appeal as a top tourist destination, the consequences would be far-reaching. Fewer tourists mean fewer jobs, less revenue for local businesses, and a direct hit to the economy. But instead of focusing on solutions that can support both the tourism industry and the local housing market, the government has taken the easy way out—blaming outsiders while enacting policies that do nothing to solve the housing shortage, on the contrary, are the main cause for it.
The heart of the issue lies in how the government has shifted responsibility for the housing crisis onto private property owners. Instead of using the taxpayers’ money to invest in social housing or refurbish publicly owned buildings that sit empty in prime locations, the government has placed the burden on individual landlords. By forcing private owners to offer long-term rentals at artificially low prices and imposing the high risk of having their property occupied by the same renters, they’ve effectively created a system where owners have no other choice than to stop renting their properties long-term to locals.
The government’s insistence on defining tenants (including squatters) as “people in need” is part of its manipulation strategy. Couldn’t property owners be people in need too? Some families, who have inherited an apartment and rent it out to help them get to the end of the month and feed their kids for example? Owning an apartment does not mean automatically “being rich”.
It’s not because people rent to tourists that there aren’t enough properties for locals. It’s because of the absurdity and risks imposed on owners by the government’s Housing Law that they choose to rent to tourists.
Tourist rental apartments represent a tiny minority of the total number of properties in Spain (around 5%), which cannot have any relevant impact.
Let me say it clearly: property owners and investors would be very willing to rent out long-term if there were a law that protected them too and allowed them to do it for the adequate market price and without the risks of having the apartment occupied.
The government of Spain has a habit of blaming others for their responsibility. The termination of the Golden Visa programme—another move that the government claimed was “necessary” to reduce housing prices—was another action meant to blame innocent foreign buyers. Golden Visa purchases account for just 0.1% of all property transactions in Spain. Blaming wealthy foreigners for driving up prices is a distraction from the real problem: a lack of investment in housing infrastructure and granting more permissions to build new developments.
