A proposal to restrict non-resident foreigners from purchasing property in Spain’s Balearic Islands has been blocked after opposition from right-wing political parties in the regional parliament.
The initiative, introduced by the left-wing party Més per Mallorca, aimed to limit home purchases by buyers who do not live permanently on the islands, including second-home investors and international buyers. The proposal was designed to address rising housing costs and growing pressure on local housing supply.
The Proposed Restrictions
The bill sought to give authorities the power to restrict property purchases by non-residents, particularly in areas facing severe housing pressure.
Under the proposal:
- Non-residents who had lived on the islands for less than five years could face restrictions on buying homes
- The rules would primarily target second-home purchases and investment properties
- Restrictions could apply in municipalities where housing affordability had reached critical levels
Supporters argued that limiting external buyers could help prioritise housing for local residents and workers, particularly in popular destinations such as Mallorca, Ibiza, Menorca and Formentera.
Why the Proposal Was Blocked
However, right-leaning parties opposed the measure, arguing that restrictions on foreign buyers would be difficult to implement and could damage the regional economy.
Industry groups and property professionals also warned that limiting foreign investment could negatively impact the construction, renovation and real estate sectors, without solving the deeper structural issue of housing supply shortages.
Opponents emphasised that the core housing challenge in the Balearics is limited new housing supply, rather than international demand alone.
Foreign Demand and the Balearic Housing Market
The Balearic Islands remain one of Spain’s most internationally driven property markets.
Foreign buyers account for a significant share of property transactions, and in some areas a large portion of housing stock is owned by overseas residents or second-home buyers.
At the same time, housing prices across the islands have continued to rise sharply due to:
- Strong international demand
- Limited new housing construction
- Tourism-driven second-home markets
These dynamics have intensified the debate over how Spain should balance local housing affordability with global investment demand.
What This Means for Foreign Buyers
Despite the political debate, foreign buyers can still freely purchase property in Spain, including in the Balearic Islands.
Spain currently maintains one of Europe’s most open property markets for international buyers, with no nationwide restrictions on foreign ownership.
While policy discussions around taxation or regional limits continue to emerge in response to housing pressures, no binding restrictions have been implemented.
NLS Conclusion
The blocked proposal highlights the growing political debate around foreign investment and housing affordability in Spain’s most desirable regions.
For now, Spain remains one of Europe’s most accessible property markets for international buyers, but discussions in areas like the Balearic Islands and Canary Islands suggest that housing policy will remain a key issue shaping the country’s real estate landscape in the years ahead.
References
- VisaHQ News. “Spanish right blocks proposal to limit property purchases by non-resident foreigners in Balearics.”
https://www.visahq.com/news/2026-02-28/es/spanish-right-blocks-proposal-to-limit-property-purchases-by-non-resident-foreigners-in-balearics/ - Majorca Daily Bulletin. “Restrictions on home purchases by non-residents in the Balearics slammed by property sector.”
