The debate on the possible limitation on property purchases by foreigners has crossed borders and reached the United Kingdom. The prestigious British newspaper, The Guardian, in an article entitled ‘Balearic Islands seeks to ban non-residents from buying property’ highlights that “sky-high prices on Mallorca, Menorca and Ibiza drive out the local population and create ‘ghost towns’ of empty homes” and emphasizes that this measure “could make it impossible for foreigners to buy a vacation home in the archipelago.”. In addition, they highlight Deià as a paradigmatic example: “The village has been a favorite among the British since the poet Robert Graves made his home there in the late 1920s.”.

This weekend the president of the Govern, Francina Armengol, explained in an interview with Diario de Mallorca that “limiting the purchase of non-resident homes depends on Europe, we need Spain to assume it and negotiate it”. He also stated that “we are preparing a diagnosis to see what percentage of home buyers are foreigners and who is buying to speculate”.

In the article they emphasize that Armengol affirms that “many European citizens and citizens of other countries can afford properties at prices that are impossible for the citizens of these islands.” and reiterates the words of the Balearic vice-president, Juan Pedro Yllanes, in which he asked to “pressure” the Spanish Government to negotiate this possibility with the European Union.

Banning property purchases to non-residents

In spite of the fact that Yllanes recognized that a prohibition would be in conflict with the European principle of free circulation, The Guardian notes that “there are precedents, in the Austrian Alps, for example, where the EU has recognised areas of cultural importance or natural beauty that must be protected from excessive external pressure“.

The British newspaper The Telegraph also echoes the news and published today that “Britons face a ban on vacation homes in the Balearic Islands” and that “Spaniards are threatening to take action” as they are “tired” of foreigners “creating ‘ghost towns’ by raising property prices”.