Canary Islands Want to Restrict Property Purchases by Foreigners — Brussels Investigates EU Exception

The Canary Islands are getting serious about the housing crisis. As Canarias7 reports today, the government has commissioned a Brussels law firm to build the legal case for restricting property purchases by foreign non-residents. The lever: Article 349 of the EU Treaty, which allows special rules for so-called "outermost regions" (ORs). CITA News, your news portal for Gran Canaria, explains what this means for the south of the island and its international community.

The Problem in Numbers

The data is unambiguous: according to the Gobierno de Canarias, 25 per cent of all property sales on the Canary Islands go to foreign buyers who do not live on the islands. In tourist hotspots such as Maspalomas, Playa del Inglés and Meloneras, the share is likely considerably higher. MP Raúl Acosta (AHI) put the figure at nearly 30 per cent in some municipalities.

The consequence: soaring prices. Rental costs in the south's tourist areas have in some cases doubled over the past three years. Young Canarians can no longer afford their own island — even with permanent employment.

The Dual Push: Madrid and the Canaries

Two levels of government have approached Brussels simultaneously — with different angles. The Canary Islands Government under President Fernando Clavijo wants to directly restrict or prohibit purchases by foreign non-residents. Housing Minister Pablo Rodríguez presented the case personally at the European Parliament's special committee on the housing crisis (HOUS).

The Spanish Central Government, via Ángel Víctor Torres (Ministry of Territorial Policy), has chosen broader language: property purchases should be restricted when the home is not intended as a primary residence — regardless of the buyer's nationality. This version targets second homes and holiday apartments as a whole.

Why It Is Legally Complex

The core problem: free movement of capital is a foundational pillar of the EU. Every EU citizen has the right to buy property in any member state. A restriction based on nationality would constitute discrimination — and would therefore be illegal. Legal analysts note that even the OR exception (Article 349) has limits: the Canaries may have special rules for taxes, agriculture or tariffs — but the free movement of capital has never been restricted for outermost regions.

One option: focusing the restriction not on EU citizens but on third-country buyers (post-Brexit Britons, Americans, Russians). Prime Minister Pedro Sánchez even floated a 100 per cent tax on purchases by non-EU foreigners — before walking it back.

What This Means for Gran Canaria

For the south of Gran Canaria, a restriction would be seismic. The area around Maspalomas, Playa del Inglés and Meloneras is saturated with holiday apartments and second residences owned by Scandinavian, German and British buyers. Many apartment complexes in Playa del Inglés — originally built as tourist accommodation — are now de facto homes for long-term foreign residents.

At the same time, the municipality of San Bartolomé de Tirajana recently passed Spain's strictest social housing law: 12 years of residency required for access to public housing. The direction is clear — the island wants to protect locals.

When Will a Decision Come?

Not soon. The Brussels law firm will first produce a legal feasibility analysis. The EU Commission has announced its own conference on the housing crisis. A concrete legislative act is unlikely before 2027 at the earliest — if it happens at all. Until then, the right of every EU citizen to buy property remains untouched.

For non-EU buyers (especially Britons), things could move faster, as the EU discrimination ban does not directly apply. The Spanish government could introduce national measures without Brussels.

CITA News is monitoring developments. More on the Canary Islands property market at Canarias7 and Idealista.