Madrid urges Brussels: Purchase bans for non-residents — what this would mean for Mallorca

Madrid urges Brussels: Purchase bans for non-residents — what this would mean for Mallorca

Can an EU veto curb the property boom on the island — or does it create new problems?

Key question: Would permission from Brussels to allow purchases by outsiders only if properties are actually used as a primary residence ease the situation in Mallorca — and is that legally enforceable?

On Passeig Mallorca early in the morning you can hear delivery vans, cement mixers and the constant hum of air conditioners. Under the dome of the cathedral homeowners and young families walk by, some with coffee cups, others with dark circles after another night spent searching for an affordable flat. This everyday scene illustrates the problem: housing on the island is scarce, prices are well above the Spanish average — notary data cite around €4,000 per square meter on the Balearics on average — and tensions are high.

Briefly: The Spanish government has asked Brussels whether purchases of property by non-residents may be restricted in particularly burdened regions if the units are not used as residences. Formally, the application concerns the Canary Islands; the Balearics are currently excluded because they are not considered an "outermost region". But the model could serve as a blueprint — and in many Mallorca municipalities residents want similar rules.

Critical analysis: Legally it is a minefield. EU law protects the free movement of goods and services as well as freedom of establishment. Restrictions are possible if they are proportionate and pursue a legitimate aim, such as addressing a housing shortage. But: measures would have to be clear, time-limited and verifiable. Without a clean dataset on actual residence use and strict exceptions there is a risk of legal disputes and lengthy procedures — exactly what real estate companies warn against.

What is often missing in public debate: the question of implementation and control. Who checks whether a property is really a primary residence? How to prevent circumvention strategies such as sham purchases or subletting? And who looks after owners who invested legitimately? Structural causes are also too rarely discussed: lack of building land, lengthy approval procedures and a shortage of social housing are drivers of the price spiral.

Concrete solutions that are more practical than a blanket purchase ban: First, a digital register for residence use and short-term rentals that allows cross-checks with electricity and water bills. Second, stricter sanctions against unregistered tourist rentals combined with a temporary tax on vacant second homes to make speculation more expensive. Third, accelerated procedures and priority areas for social housing — small, pragmatic steps that must go hand in hand with controls.

Another tool could be a targeted residency requirement for certain subsidized housing projects: apartments built or subsidized with public funds may only be assigned to residents with proof of permanent residence. That protects households with local incomes without killing investments in general.

Everyday scene: At the Santa Catalina market sellers and pensioners discuss rising rents. A baker says her son can no longer afford the flat next door; an older man suspects the houses already belong to "people who come once a year". These voices are not a media echo but the echo of the street — loud and concrete.

Conclusion: An EU stamp of approval for purchase restrictions could be legally conceivable, but it is not a panacea. Without combined measures — better data, local controls, affordable new construction and sanctions against vacancy — a ban would mainly shift displacement rather than solve it. Politics therefore needs less symbolism and more practical instruments that work locally and are tailored to the Balearics and Mallorca.