Canary Islands President Fernando Clavijo is pursuing limits on home purchases by foreign buyers on two fronts, and plans to present the proposal in Brussels in November, Idealista reported on September 21. The regional government is working on a legislative amendment at the national level that would affect buyers from outside the European Union, alongside a European-level initiative that Clavijo’s administration regards as essential for extending restrictions to EU citizens who do not intend to use a property as their primary residence.
The mechanism proposed by the regional government would allow tax penalties to be imposed on non-EU buyers who acquire a home in the Canary Islands and use it neither as a primary residence nor for long-term rental. The government is also considering restrictions on the use of certain properties and a higher council tax (IBI) on homes that remain vacant. Spanish outlet Libertad Digital reported on September 14 that the state-level proposal would require changing Spain’s Local Finance Law (Ley de Haciendas Locales), and that municipalities in areas classed as stressed would gain powers to restrict use and raise IBI on empty homes. The regional government argues that demand from higher-income buyers pushes up prices and reduces housing available to island residents.
For the European front, Clavijo is relying on proposed new European regulations which, if approved by the European Parliament, would give municipal and regional authorities additional legal tools to curb second-home purchases in municipalities classified as under “high housing pressure,” Idealista said. Libertad Digital identified the text as the proposed Affordable Housing Law promoted by Vice-President Teresa Ribera, and noted that the plan runs against the EU principle of free movement of capital and persons, which is why Clavijo’s team is drafting legal reports on the exceptional nature of the islands’ housing situation. Idealista reported that Clavijo plans to meet Raffaele Fitto, Executive Vice-President of the European Commission for Cohesion and Reforms, in November to present the proposal.
The plan follows earlier requests to Brussels. In January, Spain’s Foreign Ministry proposed that the European Commission allow limits on purchases of homes not used as a primary residence in the Canary Islands, as part of suggestions for reforming the EU’s outermost-regions rules, Infobae reported, adding that the Canary Islands government had previously asked Brussels to restrict or even ban purchases by non-resident foreigners. Infobae also cited Clavijo’s figure that one in four homes for sale on the islands ends up with foreign buyers. The reports describe the national amendment as a proposal and the EU rules as pending European Parliament approval; none of the measures is reported as adopted.
References
Idealista – Canary Islands Take Foreign Buyer Restrictions to the EU / Libertad Digital – Clavijo lleva a Bruselas su plan para restringir la venta de viviendas a extranjeros / Infobae – El Gobierno pide a Bruselas restringir la compra de viviendas que no sean para vivir en Canarias
