Perez made an excellent getaway from fifth on the grid and slipstreamed past the leading Ferrari of Charles Leclerc and his team-mate Max Verstappen on the long drag race to Turn 1.
With Leclerc and Verstappen still side by side, Perez made it three-wide on the outside and collided with the Ferrari man as he turned into Turn 1.
The incident launched Perez's Red Bull into the air, which damaged the car too much to continue as he pulled into the garage to retire, while Leclerc continued with minor front wing damage.
Perez cut a forlorn figure as he climbed out of his Red Bull but didn't appear to regret his high-risk move as he was only interested in winning in front of his home fans.
"I'm sad without a doubt because today was my opportunity," Perez told Spanish broadcaster DAZN.
"I had a very good start and I was only thinking of winning the race. I didn't want to be on the podium. I've been on the podium two years in a row.
"I saw the opportunity and I went for it. In hindsight, I took a risk, but if I had pulled it off I would have come out of Turn 1 in the lead."
Source: Autosport