Two million people in Spain are in hidden poverty linked to rent, with housing costs creating a new vulnerability. Lucía, 25, pays €650 a month — 41.5% of her net salary in 14 installments — while her parents bought a house at her age. Foreign residents renting face the same affordability squeeze.
Mortgage foreclosures in Spain rose 20.9% year-on-year in Q2 2026 to 4,090 as the Euribor climbs due to the Iran war. Foreclosures on primary residences rose 27.5% to 3,703, the highest since early 2017. More than half involve mortgages signed before 2008.
Spain's Congress gave final approval to a reform of dependency and disability laws, adding €6.2 billion to expand benefits and cut bureaucracy. The ministry calls it a refoundation of the care model in Spain. PP abstained and Vox voted against; changes will be published in the BOE in the coming days.
European Commission President Ursula von der Leyen said the EU has paid €90 billion extra for fossil fuels since the Iran war began. Spanish industry faces €7.4 billion in additional costs. Higher energy costs can drive up inflation and living expenses across Spain.
The government will challenge the Supreme Court's suspension of CERA voter registration for newly naturalized citizens under the "Ley de nietos". The state legal service is weighing an appeal for reconsideration and a nullity incident to get the case to the Constitutional Court quickly. The aim is to let new citizens vote in upcoming elections.
Spain's contributory pensions are expected to rise more than 3% in 2027, based on the average CPI from December to November. August inflation hit 4.3%, pushing the provisional increase to 3.2%. Pensioners would see benefits rise, protecting their purchasing power.
The Intergenerational Equity Mechanism contribution will rise from 0.90% in 2026 to 1% in 2027. Companies will pay 0.83 percentage points and workers 0.17 percentage points, meaning a small payroll deduction increase for employees. The rate reaches 1.1% in 2028 and 1.2% in 2029.
The Audiencia Nacional has temporarily halted the government's migrant camp in Ceuta port, which was set up for 800 migrants. The SUP police union filed an urgent appeal. The court has required the Transport Ministry to deliver the file and has summoned local officials as witnesses.
A severe Mediterranean storm caused one death in Barcelona, closed Valencia airport and diverted 11 flights to Alicante-Elche. A false ceiling fell at Vall d'Hebron Hospital and its basement flooded. Emergency alerts were issued in Valencia, Catalonia and Andalusia.
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