Is there already a home purchase ban for non-residents in the Canary Islands?

No. The Canarian government has merely sent a proposal to the Spanish state. There is no adopted rule, no entry into force and no concrete application procedure.

Which EU rule speaks against the planned home purchase ban?

Article 63 of the Treaty on the Functioning of the European Union (TFEU) generally prohibits restrictions on the movement of capital, including the purchase of property.

Which precedent is relevant for the Canary Islands?

On 8 May 2013 the European Court of Justice ruled that similar Flemish restrictions were incompatible with EU law. The Belgian Constitutional Court had to strike down the provisions.

Are there already housing support schemes in force in the Canary Islands?

Yes. A support scheme for young buyers provides for a total budget of up to 3 million euros, with purchase price limits of 170,000 euros or 200,000 euros on non-capital islands.

CANARY ISLANDS · LAW

Canary Islands: non-resident home purchase ban faces EU hurdle

The planned ban on home purchases by non-residents in the Canary Islands could fail under EU law. The Canarian government has sent the Spanish state a proposal that would make purchases conditional on at least ten years of uninterrupted registration on the islands. For foreign residents and prospective buyers this is a decisive development, because legally nothing changes for the time being.

18 October 2026 · By Julia Roca Bethencourt · 6 min.

File photo: + Corralejo liegt gegenüber der Insel Lobos — Photo: Holger Uwe Schmitt, CC BY-SA 4.0.

The key facts

The Canarian government proposes that buyers must have been registered on the Canary Islands for at least ten years without interruption or 15 years with interruptions. (Gobierno de Canarias)
One person would be allowed to buy a maximum of two homes on the Canary Islands, each in a different municipality. (Gobierno de Canarias)
A purchase without the required registration status would be void under the draft and could not be entered in the land register. (Gobierno de Canarias)
Article 63 of the Treaty on the Functioning of the European Union (TFEU) generally prohibits restrictions on the movement of capital, including the purchase of property. (Infos Gran Canaria)
On 8 May 2013 the European Court of Justice ruled that similar Flemish restrictions were incompatible with EU law. (Infos Gran Canaria)
Until a final national or European rule is adopted, nothing changes for residents, expats and visitors in terms of purchase rights, prices or deadlines. (Gobierno de Canarias)

What rules is the Canarian government proposing?

The Canarian government has sent the Spanish state a proposal for a Real Decreto-ley. It provides that buyers must have been registered on the Canary Islands for at least ten years without interruption or 15 years with interruptions.

According to the published draft, the rule would apply regardless of nationality. That means Spanish non-residents would also be covered. One person would be allowed to buy a maximum of two homes on the Canary Islands, each in a different municipality.

Companies would only be allowed to buy housing if their corporate purpose is the sale or rental to natural persons. A purchase without the required registration status would be void under the draft and could not be entered in the land register.

Why could the plan fail under EU law?

The central legal conflict concerns Article 63 of the Treaty on the Functioning of the European Union (TFEU). This article generally prohibits restrictions on the movement of capital, including the purchase of property.

The Canarian government also relies on Article 349 TFEU. This article takes account of the special structural conditions of the EU's outermost regions, but does not automatically authorise the Canary Islands to impose a ban on property purchases.

Exceptions may be possible on overriding grounds of public interest. However, they must be non-discriminatory, appropriate and proportionate. The government would have to prove before the European courts that no less restrictive alternatives exist.

Which precedent is causing problems for the Canary Islands?

An important precedent is found in Flanders, the Dutch-speaking region of Belgium. In 2009 the government there made the purchase of land and homes in certain municipalities conditional on proof of a sufficient connection to the locality concerned.

On 8 May 2013 the Court of Justice of the European Union ruled in joined cases C-197/11 and C-203/11 that the Flemish restrictions infringed fundamental EU freedoms. The Belgian Constitutional Court had to strike down the provisions concerned.

The Court acknowledged that providing housing for low-income and local population groups was a legitimate aim. However, it questioned whether the requirement of a strong, long-standing connection to the municipality was a proportionate means.

What consequences does the proposal have for residents and prospective buyers?

Until a final national or European rule is adopted, nothing changes for residents, expats and visitors in terms of purchase rights, prices or deadlines. The sources do not mention any agreed price caps, fees, closures or individual application deadlines.

Residents would in principle not be excluded once they had fulfilled the proposed registration periods. The focus is on people who do not live on the Canary Islands, as well as purchases of second homes, for speculation or for holiday rentals.

The proposed rules would apply to the whole of the Canary Islands. The available sources do not mention a special rule for Gran Canaria alone.

What housing measures are already in force?

Canarian housing support is not aimed at a general purchase stop, but at permanent owner-occupation. A support scheme for young buyers published in 2025 provides for a total budget of up to 3 million euros.

The purchase price may generally not exceed 170,000 euros, or 200,000 euros on non-capital islands. Requirements include legal residence in Spain, registration as a main home and a mortgage loan of at least 50 percent of the purchase price.

Applications and approvals are handled through the Instituto Canario de la Vivienda.

What happens next?

The proposals must first be pursued at national level and in the EU legislative process. No concrete date for a decision or entry into force has been published.

It is unclear whether the Spanish central government will take up the proposal. It is also unclear whether the Congress or the competent state bodies will pass a Real Decreto-ley.

It is equally unclear whether the EU will accept the proposed changes. The government proposes that the planned EU framework for affordable housing should expressly allow time-limited and proportionate restrictions on the purchase, use or rental by foreign non-residents.

What this figure does not say:

The registration periods of ten and 15 years mentioned come from a draft, not from a law in force. They say nothing about whether and when such a rule will actually come into effect.

The available sources contain no reliable, island-specific statistics on foreign purchases on Gran Canaria or a comparison with Tenerife, Lanzarote, Fuerteventura or Spain. The debate so far concerns the entire archipelago.

FAQ

Is there already a home purchase ban for non-residents in the Canary Islands?: No. The Canarian government has merely sent a proposal to the Spanish state. There is no adopted rule, no entry into force and no concrete application procedure.
What registration periods are proposed for buying a home in the Canary Islands?: Buyers would have to have been registered on the Canary Islands for at least ten years without interruption or 15 years with interruptions. The rule would apply regardless of nationality.
Can residents still buy homes in the Canary Islands?: Residents would in principle not be excluded once they had fulfilled the proposed registration periods. Until a final rule is adopted, nothing changes for them.
Which EU rule speaks against the planned home purchase ban?: Article 63 of the Treaty on the Functioning of the European Union (TFEU) generally prohibits restrictions on the movement of capital, including the purchase of property.
Which precedent is relevant for the Canary Islands?: On 8 May 2013 the European Court of Justice ruled that similar Flemish restrictions were incompatible with EU law. The Belgian Constitutional Court had to strike down the provisions.
Are there already housing support schemes in force in the Canary Islands?: Yes. A support scheme for young buyers provides for a total budget of up to 3 million euros, with purchase price limits of 170,000 euros or 200,000 euros on non-capital islands.

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