Mass Protests in Spain: Citizens Demand Housing Market Reform

Spain has once again been shaken by mass protests. In April 2025, large-scale demonstrations took place in over 40 cities, with thousands demanding stricter regulations on housing prices and better protection for tenants, according to Reuters.

“Our Homes Are Not for Tourists”

Citizens took to the streets carrying signs that read “Housing is a right, not a business” and “Our homes are not for tourists.” Organizers estimate hundreds of thousands participated, including over 150,000 in Madrid alone. Protesters rang bunches of keys, symbolizing lost homes due to rental pressure and tourist housing expansion.

The demonstrations come amid record tourism figures—Spain welcomed over 94 million tourists in 2024—and a severe housing shortage. The Bank of Spain estimates a deficit of 500,000 units, with only 120,000 new homes built annually, six times less than before the 2008 financial crisis.

Stricter Rental Rules & Regional Measures

In response, the Spanish government has tightened rental laws. Cities like Málaga, Madrid, and Barcelona have already implemented localized restrictions:

Málaga imposed a moratorium on new tourist flat registrations in 43 areas with high short-term rental density.

Madrid bans tourist rentals in buildings without a separate entrance.

Barcelona will phase out tourist flats entirely by 2028, a decision upheld in court.

In Catalonia, rent control measures led to a 6.4% drop in rental prices in Barcelona and 3.7% across 140 towns. A new national rental registry and platform regulation system is set to launch in July 2025, including steep fines for violations.

End of Spain’s Golden Visa Program

In April 2025, Spain officially ended its Golden Visa program, which previously allowed foreign nationals to obtain residency by investing €500,000 in real estate. Over 14,500 visas had been issued since 2013, mainly to citizens from China, Russia, the U.S., and the UK.

Officials cited speculation in luxury real estate markets, especially in Madrid, Barcelona, and coastal hotspots like Málaga and Alicante. The move aligns with government efforts to prioritize housing for locals.

Additional Housing Tax Proposals

Spain is considering even tougher measures, including:
- A potential 100% tax on real estate purchases by non-EU citizens.
- Higher taxes on short-term rentals, aligning with hotel sector rates.
- Restrictions on foreign ownership in specific regions.

Experts believe these policy shifts mark a significant turning point in Spain’s housing strategy. While aimed at restoring social balance, such measures may deter foreign investment and reduce Spain’s overall appeal as a real estate destination.