The Balearic Government considers limiting foreign home ownership

Iago Negueruela, Minister for tourism and industry, called for a deep debate on how to limit the purchase of homes to non-residents on the Balearic islands of Mallorca, Ibiza, Menorca and Formentera.  The islands have traditionally been a second home haven for wealthy Northern Europeans.    

This motion, along with others to reduce the population and over-construction is now being hotly debated.  Sustainability, quality of life and an accessible housing market for locals appear to be the objective, along with the prevention of the islands becoming “second home ghettos “. 

Approximately 35% of properties sold in the 3Q of 2022 were to foreigners.  This is generally in the most expensive sector, which leads to a knock-on effect on prices further down the housing ladder.  

Limitations on second homeowners in places such as Andorra, Denmark and Malta are being studied carefully.