BoT 651

 

Business over Tapas

A digest of this week's Spanish financial, political and social news aimed primarily at Foreign Property Owners:

Prepared by Lenox Napier.  Consultant: José Antonio Sierra

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October 8 2026            Nº 651          

 

Editorial:

As we saw from the voting on Friday, a small party (with an even smaller shelf-life) managed to put the kybosh on the housing, renting and eviction proposals from the Government of Pedro Sánchez. The three groups who voted against were the Partido Popular, the far-right Vox and the seven-member-strong Junts per Catalunya (the ones who insist on speaking in Catalán in Parliament). 

Abascal, Sánchez and Feijóo

So, Pedro Sánchez has had enough, and we will have general elections on November 29th.

Encouraged by the demonstrations and sit-ins in favour of the housing proposals – where, as El País reports, even 55% of PP and 54% of Vox supporters favour the measures.

Indeed, under Spanish law, the Council of Ministers promptly re-approved the housing decrees on Tuesday as the Permanent Deputation (the official governing body while between governments) ratified them.

The Vox program by the way calls to prioritize bona fide Spaniards over access to any public aid and subsidized housing. Their ‘National Priority’ (a form of Jim Crow proposals) would only divide the country.

There are two types of foreigners in Spain – those who work in low-paying jobs and will be obliged to find the very cheapest – probably shared – accommodation, plus the far wealthier ones who are either professionals (dentists, doctors, businessmen) or who don’t work at all: being either comfortably retired or simply very rich, living either in the smartest parts of Marbella, Madrid, San Sebastián or Palma de Mallorca – in either case, with income from abroad.

Remember though, none of them, the poorest or the well-healed, can vote.

When the elections come, the choice will be some more Sánchez, or an alliance of Feijóo with Santiago Abascal. The Sánchez we know, along with his socialist allies and programs, will likely triumph with a parliamentary majority – not in small measure thanks to the public reaction to Friday’s vote in Las Cortes.

The alternative would be the Partido Popular, cemented together with Vox by necessity to reach a majority. While the PP has moved to the right in the last year or so, in the hope of staunching deserters switching to Vox, Abascal’s party (currently with maybe 18% of the vote) would be a necessary (if unwelcome) pillar to make Feijóo president. Constant obligation to Vox would be a case of the tail wagging the dog.

In short, Vox’s price for this favour would be a high one – and they know that Feijóo would once again agree (as the PP has already done in the Aragón, Andalucía, Castilla y León and Extremadura regions). Anything to gain the coveted title of ‘Presidente’.

Tax-cuts for the wealthy, deportations and more bullfights (we say with snark).

There is the question of party corruption – where no one is entirely clean. The traditional ‘y tú tambien’ (what about you guys!).

As we know, the judiciary appear to be rather stricter with the lefties than with the conservatives.

While Pedro Sánchez speaks good English (useful for international meetings) neither Feijóo nor Abascal can manage more than a word or two. That may not matter much in Madrid, but it does in Brussels and Washington.

But in the end, the choice is down to the voters (and we mustn’t forget our friends the Russian bots). Which way the people decide will make a huge difference to the future of Spain.

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Housing: 

From The Conversation here. ‘Spain’s housing crisis is a warning for all of Europe – rights mean nothing if they’re not enforced’. It says, ‘Housing is largely devolved in Spain. The country’s 17 regions – known as Comunidades Autónomas, each with its own parliament and government – are responsible for setting their own housing policies…’ 

From RTÉ here: ‘Young people facing the rental wall in Spain. Spanish youth are among the Europeans who gain independence the latest. One of the main reasons cited by those who find themselves having to stay at their parents' home is the lack of access to housing…’ 

From El Mundo here: ‘The electricity grid complicates the housing crisis: it prevents the construction of 300,000 homes while wasting enough electricity daily to power 7 million. Compounding the major housing problem is a bottleneck created by energy policy: there is no grid connection available for new housing units, even as electricity is being wasted on an unprecedented scale’. It says: ‘According to the Banco de España, one must consider the additional drag caused by the energy policy—a factor that often goes unnoticed yet yields alarming figures. Estimates from Aelec, the Spanish association of electricity companies, indicate that grid saturation—resulting from a lack of timely investment—is so severe that requests for grid access totalling over 2GW from the real estate sector were denied in 2025. According to experts, this equates to at least 300,000 modern homes that could not be built because a reliable electricity supply could not be guaranteed. "A lack of grid access capacity could act as an additional bottleneck for the construction industry, compounding existing challenges," notes BBVA Research. It estimates that, in Madrid and the Valencian Community alone, this shortage affects 75,000 potential new homes—representing half of the urgent housing needs in both regions. The CNMC has criticized Red Eléctrica for investing even less than the authorized amount, which was already insufficient…’ 

‘A figure that exemplifies housing speculation: 571 companies own between them 271,000 apartments. Catastro data also show that 70 associations, foundations, and religious entities hold a combined total of 15,471 homes in their real estate portfolios’. More at Público here. 

From the ABC here: ‘Rocío, owner of 75 rental rooms distributed across seventeen apartments: "The profit per apartment is 410 euros, and the investment is recouped in six months." She explains how the "rent-to-rent" business model works and reveals how much money she earns’. 

From La Cadena Ser here: ‘Why blaming migrants won't lower your rent’. In point of fact – most workers in the building industry are foreign immigrants… 

‘The latest vacation rental craziness: a restaurant storeroom converted into an apartment. The latest bizarre development in the world of vacation rentals is taking place in Benalmádena (Málaga), where a restaurant storeroom has been converted into a rental unit. Moreover, to access the property, the tenant must walk through the entire bar and go down a flight of stairs!’. (with video). Item from El Huff Post here. 

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Tourism:

El País reports that: ‘The tourism sector is wrapping up the best summer in its history and is on track to surpass 100 million foreign visitors this year. The number of travellers is expected to reach around 44 million between June and September, exceeding government forecasts. Hotels, airlines, and travel agencies predict that this trend will continue’. 

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Finance: 

From Sur in English here: ‘Spain's employment figures hit best September on record thanks to regularisation process, although number of unemployed increases by 23,500. Foreigners account for nine out of every ten new jobs, while unemployment is rising rapidly and has reached levels not seen in almost a decade’. 

From the Majorca Daily Bulletin here: ‘Tourist rentals in Spain will have to pay VAT under new housing measures approved by the Spanish Government, bringing them into line with hotels. The measure is particularly significant in the Balearic Islands, where holiday rentals form a major part of the tourism sector. Prime Minister Pedro Sánchez announced the measure on Tuesday after the Cabinet approved two royal decrees aimed at addressing Spain's housing crisis. The package also includes interest-free loans of up to €50,000 for people buying their first home, €280 million for industrialised housing and measures to increase the availability of affordable rental properties…’ 

The BBC reports that ‘Spain and China are cosying up - to the anger of many in the EU’. 

…...

Politics: 

From elDiario.es here: ‘Sánchez calls early elections for November 29. The Prime Minister announces the call to the polls after taking the weekend to gauge the public mood—following the right-wing's rejection of housing decrees on Friday “To do more, we need a broader majority.”’. El País says: ‘Sánchez kicks off the campaign with housing decrees to halt evictions immediately [running at around 45 per day]: “The Government is neither throwing in the towel nor abandoning the people.” The Prime Minister takes aim at the Partido Popular and Vox: “Here come the cutbacks—first to voting rights, and now to pensions.”’. The Guardian asks: ‘Will Pedro Sánchez’s gamble to call snap general election in Spain pay off? Spanish PM is hoping to shore up his fragile mandate by tapping into public anger over country’s housing crisis’. An interesting article at Channel 4 News says: ‘Why Pedro Sánchez is betting on a snap election in Spain. On the international stage, Pedro Sánchez has celebrity status, but at home, his reputation is less than gleaming. His decision to call a snap election is a huge gamble’. 

Those two votes last Friday. The Guardian catches us up: Spanish right-wing votes down housing crisis plans as protest movement grows. Opposition lawmakers join forces to defeat proposals made by Socialist-led coalition after eviction of 87-year-old’. After careful thought over the weekend, Pedro Sánchez called for an early general election for Sunday, November 29th. 

As we can see, the property proposals from the Government are well-seen, even by the Vox supporters. El País has the story here: ‘The plan to lower rents is overwhelmingly popular on the Left and also gains traction among PP and Vox voters. More than two-thirds of the public advocate for measures to curb prices—even at the landlord's expense—including over 55% of PP and Vox voters, according to a 40dB poll’. With the government dissolved, the Diputación Permanente, where the balance of power differs from the plenary session and is more favourable to Cabinet interests, assumes responsibility for approving re-introduced legislation. The first decision – on Tuesday – returns the housing rules from last week, including the ‘measures to help protect vulnerable tenants, tackle speculation and regulate seasonal and room rentals, as well as purchases by so-called vulture funds’.  From Sur in English here, ‘the Sumar spokesperson and Minister of Health Mónica García stated that her proposal is "to push this government, so that the progressive label is not just a label", to intervene "in the main problem that the country has right now, which is housing"’. 

Pedro Sánchez's latest magic trick. – ‘He bypasses the Supreme Court, and the electoral roll will therefore incorporate the Ley de Nietos (Grandchildren Law)’ (Found on Facebook). This will add a potential 400,000 voters who live overseas to the mix. 

El Mundo here: ‘Aznar: "If Pedro Sánchez can form a government after the November 29 elections, the monarchy would come to an end". The former President also criticizes the 'Grandchildren Law' because it attempts to "alter the electoral roll to gain advantages"’. The Ley de Nietos is the law that gives Spaniards and their issue who fled from Spain during the Franco years both Spanish nationality and the (contested) right to vote. 

Público says: ‘Vox claims pensions are "bankrupt" and advocates for moving towards privatization. José María Figaredo outlined the "drastic" reform his party would implement to supplement state benefits with private plans or personal savings’. 

‘The Israeli lobby ACOM launches a campaign for the PP and Vox, denying the genocide in Palestine’. From El Plural here. 

A General Strike over the housing issue appears certain – indeed, the unions and el Sindicato de Inquilinas have now chosen Wednesday, November 11th. 

The Olive Press analysis: ‘Pedro Sánchez has called a snap general election, and if the polls are right, the Partido Popular will win it. Despite promising polling results, PP leader Nuñez Feijoo would still require a coalition with the hard-right Vox party to govern…’ 

From RTVE here, ‘Nov. 29 General Election polls (average from October 5th): PP and Vox could govern with over 200 deputies (‘MPs’). The PP would win the election with 137 seats and would need Vox's 65 MPs for the investiture vote, according to the RTVE poll average’. 

Some late news: Maricarmen, the elderly tenant evicted from her apartment in Madrid, inadvertently causing both the massive housing protests and the snap election, has died in the hospital where she had been transfered to following her forced removal.  

…...

Catalonia: 

From The Guardian here: ‘Exiled separatist leader is likely to return to a very different Catalonia. Nine years on from a failed independence push, former president Carles Puigdemont will find times have changed’. 

…...

Ceuta and Melilla: 

El Mundo says: ‘The King and Queen will visit Ceuta and Melilla on October 13 and 14, a historic trip that Sánchez will not attend. King Felipe and Queen Letizia will visit the two autonomous cities, just as the Monarch promised. From Reuters here: ‘The Spanish king to visit disputed enclaves, testing Morocco ties after border crisis’. The event – the first royal visit since 2007 – will no doubt rile up the Moroccans. Also, from Reuters here: ‘Spanish police clear migrant camp on Ceuta beach ahead of royal visit’.

…...

Europe:

From Deutsche Welle here: ‘France and Spain welcome the idea of the UK rejoining EU. During a visit to Spain, France's Emmanuel Macron said it would be "good news" if the UK moves towards the EU, with Pedro Sánchez also embracing the idea. UK PM Andy Burnham has not ruled out rejoining the bloc’. 

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Crime and Punishment: 

From elDiario.es here: ‘The Prosecutor's Office seeks the acquittal of Begoña Gómez in the jury trial: “Without a crime, there is no perpetrator.”’. 

An Ibiza PP councillor resigns following her husband's arrest in an anti-drug operation.

The operation resulted in 27 arrests and placed 70 properties—including 16 villas—under a ban on sale; the network allegedly funnelled drug-trafficking proceeds into luxury homes. 

…...

Media:

From Sage Journal here: ‘When Do Parties Lie? Misinformation and Radical-Right Populism Across 26 Countries’.   

A good one from Facebook: ‘When the Right loses the elections, it tries to destroy society. When it wins it succeeds’.  

My own blog opinion here: ‘Pros and Cons: Who will be Left Standing After the Elections?’

…...

Ecology: 

From Eye on Spain here: ‘Changing Weather Patterns and Desertification Threaten the Spanish Countryside. Ask anyone in Britain why they swapped the drizzle for a Spanish postcode, and the answer is almost unanimous: reliable, golden sunshine. But if you have spent significant time living in Spain over recent years, you will know that the climate conversation over a morning café con leche has turned considerably more anxious…’ 

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Various:

New cars. Motorpasión says ‘Chinese brands have transformed the Spanish market: electric vehicles are now outselling gasoline models. Pure electric vehicles now account for over 18% of the market, compared to 16% for gasoline cars. They have seen 71.7% growth compared to September of last year. So far in 2026, nearly 217,300 electric vehicles have been sold’. 

From Xataca here: ‘’The National Geographic Institute has just updated all its maps of Spain to high resolution, and they can be downloaded for free from its website’. Fiddle with this and find a detailed map of your area. 

A two-ton armoured limousine was launched over the roof of a five-story building. December 20, 1973. The end of Franco’s heir Admiral Luis Carrero Blanco here. 

Each week, several Spanish newspapers are kind enough to run Business over Tapas, including El Observador here, Galicia Digital here, Euro Mundo Global here (for some reason with a picture of Per Svensson) and Málaga al Día (sometimes). 

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Finally: 

An oldie but a goodie: Jeanette - Porque te vas on YouTube here. Jeanette is a British / Spanish singer (Wiki).