ERC’s latest motion in the Catalan parliament demands new legal powers to ban most foreign buyers, claiming they’re to blame for rising housing costs. The only thing being speculated here, however, is political capital.

ERC pushes new restrictions on foreign buyers

ERC is at it again. The Catalan Republican Left party has pushed through yet another parliamentary motion demanding limits on foreign property buyers, blaming them for housing “speculation” and rising rental prices. Their proposal passed with the support of the PSC, Comuns and CUP—though notably it remains a symbolic gesture with no legal force for now.

The motion calls on both the Spanish Government and the Catalan executive led by Salvador Illa to create the legal framework needed to restrict property purchases by non-resident foreigners, anyone with fewer than five years of residence in Spain, and even Spanish companies with foreign shareholders. That’s a wide net designed to catch almost anyone ERC deems “foreign” enough to scapegoat.

A familiar populist refrain

ERC’s argument is that foreigners are buying homes not to live in them, but purely to speculate, which supposedly drives up prices for everyone else. “The market is ferocious and without scruples. We have to regulate it,” said ERC deputy Mar Besses during the debate.

But as usual with ERC, the claims are bigger than the facts. Foreign buyers make up a small share of the overall housing market in Catalonia. Many are not speculators but families relocating to live and work, retirees, or second-home buyers with longstanding ties to the region. Suggesting they’re all faceless profiteers is politically convenient but fundamentally dishonest.

This isn’t about fixing the market

If ERC were serious about tackling housing affordability, they’d focus on the structural problems they’ve helped create: rent controls that discourage supply, weak enforcement against illegal squatting, and suffocating bureaucracy that hinders development. These are the real reasons the housing market is broken—not a British couple buying a holiday-home on the Costa Brava.

In fact, far from helping, ERC’s approach could make things worse. Their motion also supports banning tourist rental licences for foreigners and introducing punitive measures for people who own multiple homes. Were any of this to become law, it would likely decimate the tourist rental and second-home markets that sustain local economies on the Costa Brava and Costa Dorada—without doing a thing to improve housing access for locals.

No legal basis

The motion, while passed, is little more than political theatre. As things stand, foreigners will continue to be able to buy property just as before. Any actual restrictions would require legislative changes at both the national and regional level, and even then, they would almost certainly fall foul of EU law—particularly when it comes to discriminating against citizens of other EU member states.

Even some of ERC’s rivals on the left seem to recognise the problem. Junts and the PP were highly critical of the motion, with PP deputy Àngels Esteller warning that rather than ensuring access to housing, the plan would destroy it. “¡Exprópiese!” she exclaimed, borrowing a line from the late Venezuelan strongman Hugo Chávez.

All gesture, no policy

At the end of the day, this latest move from ERC is just more of the same: posturing in the guise of policy. It’s easier to blame foreigners for Catalonia’s housing problems than to take responsibility for years of bad decisions. But while ERC points the finger abroad, the crisis at home continues to grow.

A power struggle is brewing within Spain’s governing coalition as the Socialist Party (PSOE) and its junior partner, Sumar, vie to lead the country’s housing agenda—an issue that both parties are positioning at the core of their legislative strategy.

Though allies in government, PSOE and Sumar have begun drawing sharp lines between their competing proposals on housing, each hoping to brand itself as the true champion of affordability and social justice in an increasingly tense landscape marked by soaring rents and property speculation.

The conflict comes at a time when housing has climbed to the top of public concern, particularly in cities like Madrid, Barcelona and Palma, where short-term rentals, so-called gentrification, and foreign investment have squeezed locals out of the market.

PSOE: market reform with a fiscal edge

In recent weeks, PSOE has floated proposals to increase VAT on short-term tourist rentals and introduce a tax on foreign buyers—moves aimed at cooling speculative demand and generating public revenue. These measures reflect the Socialists’ wider strategy of tweaking the tax framework to level the playing field without spooking the broader market or foreign investors.

“We must ensure that housing returns to its role as a basic right, not just an investment vehicle,” government sources say, though the PSOE continues to favour a more measured, incremental approach to reform.

Sumar: pushing for structural transformation

Hard-left Sumar is taking a more activist stance. Beyond tackling tourist rentals, the left-wing platform is pushing for deeper regulations on large landlords, stronger rent controls, and expanded public housing stock—arguing that the current housing model is no longer fit for purpose.

“We’re not here to patch up a broken model. We’re here to transform it,” has been the recurring message from Sumar’s parliamentary team.

Tensions reached a new high this week following the submission of competing proposals to Parliament, with Sumar insisting that its ideas go beyond revenue generation and seek to guarantee universal access to decent housing.

Why this battle matters

While both parties agree on the urgency of the housing crisis, their differing philosophies raise key questions: Should housing be primarily a matter of fiscal policy or structural reform? Should the state act as referee—or take the field?

This internal rivalry now threatens to complicate the coalition’s unified message and could stall legislative progress if a coherent policy roadmap isn’t agreed upon. Nonetheless, both parties appear determined to mark housing as their political battleground of choice for the coming year.

A preview of 2025?

The political significance of housing cannot be overstated. With national and regional elections looming on the horizon in 2025, PSOE and Sumar are not just fighting over legislation—they’re fighting over the loyalty of Spain’s squeezed middle class and disillusioned young renters.

And while coalition friction is not uncommon, the depth and visibility of this tussle suggests it may shape not only housing policy but the broader political narrative of this legislature.

For property investors, landlords, developers, and local authorities, this battle is one to watch—because what currently looks like a war of words might soon materialise into damaging legislation.