The bond became stronger when Maria Christina of Austria, consort of Alfonso XII of Spain, moved the court's summer location to San Sebastián when she was widowed.
After Maria Christina's death in 1929, the palace was inherited by Alfonso XIII of Spain, and afterwards confiscated by the government in 1931 with the advent of the Second Spanish Republic.
In 1933 it passed into the hands of the San Sebastián City Council with the condition that it would serve as the summer retreat of the president of the republic and that part of the facilities would be used for educational and cultural purposes.
During Francoism, the palace returned to the hands of Alfonso XIII's children, principally to Don Juan de Borbón.
The rest of the estate, separated in two plots of 10,000 and 37,000 square metres, was sold in 1963 in benefit of Juan de Borbón's siblings for housing construction.