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If the squatter is allowed to break in while you're not home and change the locks, why can't the owner wait for them to be out and also break in and change the locks?

Does the law specifically say that breaking in is allowed by anyone except the legitimate owner?

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Essentially, yes, that's how stupid law is in Spain. But if a third squatter would break in, they'd be safe. See eg https://www.google.com/amp/s/amp.antena3.com/programas/espej...

Seems there might be a business opportunity in a “third squatter for hire” business.

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