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After housing protests turned violent, Spain will tax seasonal rentals to build a 10 billion euro fund into first-home loans

October 6, 2026
in News
After housing protests turned violent, Spain will tax seasonal rentals to build a 10 billion euro fund into first-home loans

Spain’s government on Tuesday approved urgent measures to tackle the housing crisis, after an outbreak of violence the night before in Barcelona saw tens of thousands taking to the streets demanding a quick resolution.

The angry protests followed nationwide demonstrations over the weekend. All were triggered by the eviction of 87-year-old María del Carmen Abascal from her Madrid home last month.

The approved steps were similar to those Parliament rejected last week. Prime Minister Pedro Sánchez’s coalition government lacked a majority and suffered a bruising legislative defeat when right-wing opposition parties voted down emergency decrees to address the housing crisis. He called on Monday for an early election on Nov. 29.

Steps to ease buying and renting homes

The 21 approved measures include facilitating renting or buying a new home, extending eviction protections for vulnerable residents, regulating room rentals, imposing a new tax on seasonal rentals, prohibiting speculative real estate purchases, and granting tax breaks to property owners and tenants who pay on time.

“We will not allow any more evictions like the one Maricarmen suffered or like those that have occurred since the decrees were repealed,” Sánchez told reporters at the Presidential Palace, referring to Abascal by her nickname.

The government will also set up a 10 billion euro fund to provide loans of up to 50,000 euros to buy a first home, as well as construction subsidies, he added.

The steps will need to be ratified by an interim legislature instead of the Parliament, which was dissolved after a call for a snap election. It consists of 69 members rather than the 350 that sit in the regular Parliament. Sánchez’s coalition will need just 35 votes to pass the measures.

The prime minister still asked for opponents’ votes, saying: “We are not talking about an ideological issue, but about common sense.”

“Many Spaniards are waiting for solutions, not just those gathering in town squares, nor the thousands of protesters in the streets. I’m referring to millions of citizens who are waiting for their representatives to show the courage to stand up to the powerful, rather than submit to them,” he said.

Protest turned violent in Barcelona

In Barcelona, Spain’s second-largest city, a severe weather alert over the weekend had forced organizers to reschedule the protest for Monday. What began as a massive peaceful march turned violent when groups of hundreds of hardcore activists clashed with police, throwing stones and setting fire to trash containers.

Alejandro Quiroga, professor of political science at Madrid’s Complutense University, told The Associated Press that having decrees approved by the interim legislature was constitutional but also a necessary political move by Sánchez.

“I don’t think Sánchez had an alternative,” Quiroga said. “If you are calling early elections so you can keep the public’s focus on housing, you can’t just sit back and do nothing about it. That wouldn’t have been smart.”

Rising costs and a housing shortage are pricing many Spaniards out of the housing market, despite strong economic growth in Europe’s fourth-largest economy. The protesters have been demanding stronger tenant protections, measures to combat fraud, and a ban on evictions when alternative housing is unavailable.

The post After housing protests turned violent, Spain will tax seasonal rentals to build a 10 billion euro fund into first-home loans appeared first on Fortune.

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