The parliamentary elections scheduled for 29 November 2026 could lead to the formation of a new Spanish government headed by the People's Party (PP), with the support of Vox. Such a political scenario could significantly change the country's economic, tax, housing and immigration policies.
The most important issues for businesses and foreign investors concern real estate regulation, the protection of private property, taxation and the prospects for the construction sector.
What changes can be expected, and how quickly could they take effect?
1. Economic Policy: Tax Cuts and Business Support
The People's Party has traditionally advocated the development of private enterprise, the reduction of administrative barriers and the stimulation of economic activity.
In its election statements, PP has proposed tax incentives, investment support and the simplification of certain administrative procedures.
Vox also supports substantial tax reductions, less bureaucracy and a review of certain areas of public spending.
If these parties secure a parliamentary majority, efforts to implement a more private-sector-oriented economic programme can be expected.
However, specific tax changes will depend on budgetary constraints, coalition agreements and the legislative process.
2. Real Estate: A Possible Review of Rental Regulations
Housing policy could become one of the most significant areas of change.
Spain's current rental market regulations continue to generate debate among property owners, tenants, developers and public authorities.
The People's Party has criticised certain provisions of existing housing legislation and proposes placing greater emphasis on increasing housing supply, introducing tax incentives and ensuring legal certainty for property owners.
If PP comes to power, some mechanisms of government intervention in the rental market could be reviewed.
For investors, this could potentially make long-term residential rentals more attractive.
However, the removal or modification of existing restrictions would not happen automatically. In Spain, a significant proportion of housing policy powers belongs to the autonomous communities, while local regulations also depend on municipal decisions.
This is particularly important in Catalonia, where specific regional housing measures are in place.
3. Protection of Private Property and Illegal Occupation
The issue of illegal property occupation, commonly known in Spain as okupación, features prominently in the political programmes of right-wing parties.
PP proposes strengthening legal protections for property owners and accelerating procedures for dealing with illegal occupation.
Alberto Núñez Feijóo has specifically announced his intention to introduce measures allowing the eviction of illegal occupants within 48 hours.
Vox also advocates tougher measures against illegal property occupation.
If the relevant initiatives are approved, they could reduce certain legal risks for property owners and investors.
However, it is important to distinguish between illegal property occupation, breaches of rental agreements and disputes involving tenants. These situations have different legal characteristics and are governed by different procedures.
The practical consequences of future reforms will therefore depend on the final wording of the legislation.
4. Construction: Increasing Housing Supply
One of the most significant challenges facing the Spanish economy is the shortage of residential property in high-demand regions.
The People's Party proposes increasing construction volumes, accelerating urban planning procedures and making more land available for residential development.
Feijóo has announced an objective of facilitating the construction of up to one million new homes during the next parliamentary term.
Proposed measures include simplifying permit procedures, mobilising land resources and attracting private investment.
For developers and construction companies, such policies could create additional opportunities.
However, a substantial expansion of housing construction requires time, infrastructure, financing, skilled labour and coordinated action between central, regional and municipal authorities.
Therefore, even if the proposed reforms are approved, a significant increase in housing supply is unlikely to happen immediately.
5. Property Purchase Taxes
Tax policy could become one of the key areas of reform under a new government.
The People's Party has already proposed measures to support younger homebuyers, including government-backed mortgage guarantees and reductions in certain taxes on first-home purchases.
In particular, PP has suggested substantially reducing the tax burden for buyers under the age of 40, subject to specific eligibility requirements.
However, these proposals should not be treated as legislation that has already been adopted.
In Spain, taxes associated with purchasing property are divided between national and regional authorities.
For example, Property Transfer Tax (ITP) is established by the autonomous communities within their respective powers.
Consequently, even if the central government changes, the tax conditions for purchasing an apartment in Barcelona, Madrid or Alicante may continue to differ.
6. Immigration Policy and Foreign Investors
Significant changes could also occur in immigration policy.
Vox advocates stricter immigration controls, changes to eligibility rules for certain social benefits and priority for Spanish citizens in some government support programmes.
PP also proposes strengthening immigration controls, although the two parties differ in their approaches to certain issues.
If they form a joint government, immigration policy is likely to become one of the subjects of coalition negotiations.
For foreign entrepreneurs and property buyers, it is important to distinguish between several separate matters: property ownership, the right to reside in Spain, obtaining residence permits and access to government programmes.
Purchasing property in Spain does not automatically grant a foreign national the right to reside in the country.
Furthermore, European Union citizens and nationals of non-EU countries are subject to different legal frameworks.
Therefore, a possible tightening of immigration rules should not automatically be interpreted as a restriction on foreigners' right to purchase property in Spain.
7. What Will Happen to Property Prices?
A potential change in government policy does not automatically mean that housing prices will either fall or rise.
Several factors influence the market simultaneously: limited property supply in desirable locations, domestic and international demand, borrowing costs, construction expenses and economic expectations.
In the short term, legislative changes may primarily influence investment decisions and market sentiment.
In the medium term, increased construction activity could help reduce housing shortages in certain market segments.
At the same time, tax incentives and more accessible mortgage financing could support buyer demand.
The ultimate impact of reforms on property prices will therefore depend on the interaction between government measures and fundamental market conditions.
8. Which Regions Could Attract Greater Investor Interest?
If reforms aimed at encouraging private investment and construction are introduced, Spain's largest and most sought-after property markets could attract particular attention.
Barcelona and Catalonia. Rental regulations, urban planning restrictions and the availability of new housing will remain among the most important issues. Regional legislation will continue to play a decisive role.
Madrid. The Spanish capital could maintain its appeal to domestic and international investors thanks to its concentration of businesses, population and economic activity.
Costa Blanca. Alicante province, including Benidorm, Finestrat, Altea and other coastal towns, remains an important destination for foreign buyers and property developers.
Costa del Sol. Marbella, Estepona, Benahavís and neighbouring municipalities offer opportunities for buyers of premium properties and international investors.
Balearic Islands. Market prospects will depend not only on demand but also on strict construction restrictions, regional regulations and the availability of development land.
9. What Risks Will Remain After a Change of Government?
Even if PP and Vox secure a parliamentary majority, Spain will not be able to resolve all the structural problems affecting its property market quickly.
The main challenges include:
Lengthy urban planning and administrative procedures.
Insufficient housing supply in certain regions.
A shortage of skilled construction workers.
High construction material and financing costs.
Differences between regional and national legislation.
The need to comply with European legal and budgetary obligations.
Furthermore, differences in the political positions of PP and Vox could influence the content and timing of individual reforms.
Conclusion: What Prospects Could Open Up for Spain?
The People's Party coming to power with the support of Vox could lead to a significant shift in Spain's economic direction.
The most likely areas of reform include reductions in certain taxes, support for private enterprise, incentives for residential construction, stronger legal protections for property owners and a review of some rental market regulations.
For the real estate market, such policies could potentially create a more favourable environment for investment and property development.
However, political announcements are not the same as enacted legislation, and the economic effects of reforms generally emerge gradually.
For international investors, the decisive factors will remain legal stability, economic growth, local demand and the quality of individual investment properties.
The results of the parliamentary elections on 29 November 2026 will indicate how realistic this scenario is and which political forces will shape Spain's economic future.
