Spain's Balearic Islands Consider Banning Foreign Property Purchases
British citizens could face restrictions on acquiring homes in some of Spain's most sought-after destinations under new legislative proposals. Lawmakers in the Balearic Islands, including Mallorca, Menorca, and Ibiza, are preparing to debate a measure that would prevent property acquisitions by individuals who have not resided on the islands for at least five consecutive years.
Targeting Overseas Buyers Amid Housing Pressures
The initiative, introduced by the Left-wing party Més per Mallorca, specifically aims to curb purchases by foreign nationals, including thousands of Britons who own holiday homes in the Mediterranean region. Currently, approximately 90,000 properties across the Balearic Islands are owned by foreign nationals, accounting for 16% of the total housing stock. In 2024 alone, nearly 12,000 Spanish properties were purchased by British buyers, according to data from the property portal Idealista.
Activists argue that extensive foreign ownership is undermining local communities and driving housing affordability issues for residents. The islands welcomed 19 million tourists last year, exacerbating frustrations over excessive tourism and the conversion of residential properties into holiday rentals and second homes.
Political Debate and Legal Challenges
Lluís Apesteguia, an MP for Més per Mallorca, stated that "extraordinary measures were necessary" to address these pressures. He emphasized, "We have to prioritise the houses that are for living in – not for those who want to speculate and continue with this game of Monopoly." If approved, this measure could serve as a model for similar restrictions in other parts of Spain, with advocates pointing to Denmark's regulations, which require UK-born buyers to have lived in the country for at least five years before purchasing property.
However, opposition parties express skepticism about the plan's legality. Sebastià Sagreras, a spokesman for the Centre-Right People's Party (PP), argued that EU regulations mean the proposals "cannot be fulfilled" and confirmed his party would vote against them. Marc Pons of the Spanish Socialist Workers' Party (PSOE) noted that while the policy might help ease price increases, the regional government could "not rely solely on this solution to the problems."
Soaring Property Values and Broader Implications
The debate unfolds against a backdrop of rapidly rising property values. The average price of a 90-square-metre home in the Balearics has surged to €461,269 (£403,265), up from €283,825 (£248,142) in 2020—a staggering increase of over 62%. Foreign buyers represented 13.8% of all Spanish property sales last year, totaling nearly 97,300 transactions, a record high for non-Spanish nationals, according to Idealista.
Ferran Rosa, an MP in the Balearic parliament, highlighted the severity of the issue: "Housing is certainly the largest problem for Mallorcans, as prices have been rising for years and more and more houses are devoted to non-residential uses." He added, "Our plan is to ensure that houses are used for living, rather than ‘tourist’ uses, considering second homes for non-residents a tourist use. In this respect, we base our bill in similar regulations existing across the EU that intend to guarantee the right to housing."
This proposed ban reflects growing tensions between tourism-driven economies and local housing needs, with potential ripple effects across Spain and other European regions facing similar challenges.
