Hmm, well the political tone-deafness is rather Obamanoid, but the sheer stupidity is pure Biden.
Certainly is politically tone-deaf.
But the Spanish royal budget (iirc, under $10m) is extremely low by most standards, and a fair person would probably see it as a poor trade for the state taking over pretty much all the immense real estate and other property holdings of the royal house, which were confiscated without other compensation.
Compared to the British royals, who own immensely valuable property, the Spanish ones are paupers.
They are poorer even than much of the Spanish aristocracy, who are also great property owners - and to whom Franco returned the holdings confiscated by the Republic. There are plenty Spanish nobles much wealthier than the king.