Protest Against Overtourism & Housing Crisis on Mallorca – July 2024
Spain is facing a severe housing crisis driven by overtourism, short-term rentals, and foreign property investments. In response, the government is taking decisive action: ending the golden visa program, removing over 65,000 illegal Airbnb listings, and proposing a 100% tax on foreign property buyers. With plans to welcome 1 million foreign workers in the next three years, Spain’s strategy aims to balance tourism growth with affordable housing for residents.
Spain’s bold steps include:
- Removal of 65,000 Airbnb listings to combat overtourism and protect housing.
- Crackdown on violations like fake licenses and unclear ownership.
- Madrid’s High Court upheld these actions in November 2024.
- 229,000 homes held holiday rental licenses—up 15% over four years.
Urban areas like Madrid, Andalusia, Catalonia, Valencia, Basque Country, and the Balearic Islands bear the brunt, where protests erupted last year over rising rents (+80%) and decreased housing. This mirrors wider European trends amid housing shortages and rising costs.
On June 15, 2024, European activists plan to protest across the EU to limit tourism growth—highlighting issues like pollution, overcrowding, and transportation strain.
Is Housing Supply the Core Issue?
Airbnb asserts that building more homes is the key, claiming that housing shortage is the real problem. The Bank of Spain estimates a need for 1.5 million social rental units to meet EU standards, echoing similar EU-wide concerns. The UK, for instance, aims to build 1.5 million homes in five years to address its own decline in housing supply.
Impact of Digital Nomads & Golden Visas
The rise of digital nomads and foreign real estate investors worsens the crisis, as landlords prefer short-term rentals. Spain’s golden visa program—requiring €500,000 investment—was cut because 94% of visas were granted for properties in overcrowded cities like Madrid and Barcelona.
To curb foreign purchases, Spain has introduced a 100% tax on real estate bought by foreigners. Prime Minister Pedro Sánchez cited foreign buyers—particularly British citizens, who bought 20% of properties in 2023—as fueling the issue, aiming to prioritize residents’ needs.
Looking Ahead
Spain’s decision to limit tourism and tax foreign buyers underscores a delicate balance between boosting tourism and ensuring affordable housing for locals. With plans to host 1 million immigrants and regularize undocumented workers over the next three years, the focus on sustainable growth and housing accessibility has become more urgent than ever.
Ready for your own escape?
Join us on the beautiful island of Mallorca in July 2024 for a protest against overtourism & housing issues—or simply escape the chaos. Book your unforgettable vacation with MWR LIFE today and experience Spain’s vibrant culture, stunning landscapes, and serene beaches. Let’s make your summer one to remember!
