Spain's foreign property ownership debate intensifies in tourist hotspots

Spain’s right-wing parties have recently dismissed a proposal aimed at limiting foreign property ownership in the Balearic and Canary Islands. This initiative, which was discussed in both the Congress and Senate, was branded “xenophobic” by members of Vox, who joined forces with the Popular Party (PP) to form a majority against it.

This non-binding initiative gained traction from several left-wing factions, including the Confederate Left and Coalición Canaria (CC), the ruling nationalist party in the Canary Islands. CC proposed these restrictions in a bid to engage with other outermost regions of the European Union, hoping to secure an exception from Brussels regarding measures that contravene the bloc’s principles of free movement of people and capital.

In the Balearic Islands, left-wing leaders have hinted at negotiating with the EU to extend these limitations, citing parallels with the Canary Islands’ status. Earlier this April, the region's right-leaning government had already expressed opposition to the proposal.

Both the Balearics and the Canaries are renowned tourist destinations, and in recent years, skyrocketing property prices and rents have increasingly marginalized local residents. The influx of foreign buyers has significantly impacted the real estate market, prompting discussions about complementary strategies to ensure affordable housing and prioritize local access to homes.

According to data from Spain's General Council of Notaries, foreign buyers—both residents and non-residents—comprised nearly 20% of property transactions in the Canaries during the latter half of 2024, while in the Balearics, this figure exceeded 25%. The proposal’s text criticized the overwhelming acquisition of homes by non-residents for exacerbating housing market pressures, particularly in areas heavily frequented by tourists. It argued that this phenomenon distorts pricing and displaces the local populace, undermining the islands’ social, economic, and cultural integrity.

Balearic Vox MP Jorge Campos opposed the initiative, accusing left-wing proponents of deliberately avoiding the term "foreigner" in their proposal to evade accusations of xenophobia. He claimed that restricting home purchases by non-resident foreigners is nothing short of discriminatory.

Meanwhile, the PP attributed the housing crisis not to foreign buyers but rather to the policies of the central government led by Pedro Sánchez. They criticized the administration for creating "legal uncertainty" and increasing bureaucratic hurdles, which they argue have aggravated the situation for locals.

Dolores Corujo, the PSOE representative in the Joint Committee, defended the government’s housing policies, highlighting the elimination of the golden visa program and the enactment of the Housing Law as examples of positive action.

The year 2025 has seen a surge in proposals aimed at curbing foreign property purchases as part of Spain's broader strategy to address its housing crisis. In January, the Spanish premier suggested implementing a 100% ‘supertax’ on non-resident non-EU buyers or outright banning them from purchasing homes unless they have ties to Spain. Since then, no further updates have emerged.

In late March, the Catalan separatist party ERC introduced a proposal requiring resident foreigners to apply for permission to buy homes if they have lived in Spain for less than five years; however, this initiative was also rejected.

Among the measures that have been enacted is the termination of the golden visa scheme, which had allowed affluent non-EU nationals to obtain Spanish residency by acquiring property worth €500,000 or more.