Europe opened the door to limiting home purchases by non-residents in response to the PP

PalmMÁS per Mallorca demanded on Monday that the PP and Vox parties support the eco-sovereignists' proposed law to prohibit non-residents from buying homes, which will be debated this Tuesday in the Balearic Parliament. However, a vote in favor from the right and far right is unlikely. The PP has accused the eco-sovereignists of engaging in "demagoguery" with this proposal, which it considers unworkable, and Vox has expressed doubts about its viability. Nevertheless, MÁS leader Lluís Apesteguia has put forward a key piece of evidence: the response the European Commission gave in March 2023 to PP MEP Rosa Estaràs, which opens the door to passing this restriction.

In February 2023, Estaràs posed a written question to the Commission: "Would it be possible for Member States to restrict the acquisition of homes by non-residents?" The MEP argued that, "although free movement applies to all EU countries, certain transitional periods and exceptions to the free movement of capital were negotiated at the time of accession of the new countries." Furthermore, she continued, the Treaty on the Functioning of the European Union (EU) "requires that all restrictions on the movement of capital between EU countries be prohibited (...) unless they are necessary to pursue legitimate public interests." In the written reply, then-Commissioner Mairead McGuinness responded to Estaràs that this Treaty "prohibits restrictions on capital movements related to the acquisition of immovable property, including homes, by non-resident EU nationals." However, he said that these restrictions "may be justified (...) for reasons of public order, public safety, or overriding reasons of general interest recognized in the case law of the Court of Justice of the European Union (CJEU), provided that they are not discriminatory and are proportionate to the objective pursued."

Similarly, Apesteguia cited some twenty CJEU rulings that support applying restrictions in similar cases, with aims such as combating speculation or promoting the general interest. Although housing regulations fall under the jurisdiction of member states, this measure transcends the powers of the Spanish government and the Spanish state, and its debate falls within the European sphere. In a 2020 report on the impact of EU policies on Mediterranean islands—commissioned by ERC MEP Jordi Solé—Joan David Janer, an expert in public international law and international relations at the University of the Balearic Islands, interpreted the jurisprudence of the Court of Justice of the EU. In his report, the expert asserted that restrictions on purchases could "imply a violation of the right to freedom of contract, which directly affects the principle of equality." Therefore, justifying these policies would not be simple. One possibility he raised was defending them as necessary to fulfill a social function. When asked about it by ARA BalearesHe considered this option difficult, but it could be considered once "other avenues have been exhausted" and it is applied "proportionately."

More than 80,000 homes in 17 years

Between 2007 and 2024, 80,758 houses and apartments in the Balearic Islands were purchased by foreign nationals. To put this into perspective, this figure represents 40% of the real estate in Palma, or the combined total of all properties in Inca, Manacor, Mahón, and Ibiza. Countries like Belgium, Denmark, Croatia, and Malta have implemented restrictive measures for non-residents. All of them had agreed to exceptions before joining the single market through accession treaties, something Spain did not do. Denmark requires a residence permit and proof of five consecutive years of residence before a property can be purchased. Only then does the Ministry of Justice grant the necessary permit. Finland protected the acquisition of land and housing in the Åland Islands archipelago with identical measures to Denmark's. It also added the requirement of proficiency in Swedish, the region's official language. Malta established a provision stipulating that European citizens can only purchase a property if they have resided on the island for more than five years.