canary islands foreign housing purchase restrictions file

Canary Islands Push to Limit Foreign Home Purchases

Canary Islands push for stricter foreign housing restrictions

The Canary Islands government supports the housing plan presented by Pedro Sánchez at the Conference of Presidents held on June 6 in Barcelona, but seeks to take more decisive action. The archipelago wants to convince both Minister Isabel Rodríguez and other autonomous communities to support their proposal to limit housing sales to foreigners – a critical issue for travelers and residents alike as it directly impacts accommodation availability and local housing markets.

The ‘Canary Islands solution’ explained

Housing Minister Pablo Rodríguez has been tasked with promoting this initiative in negotiations with autonomous regions that have approved the central government’s proposal. The ‘Canary Islands solution’, presented by President Fernando Clavijo two weeks ago in Parliament, proposes that the State use its constitutional authority over local government matters to authorize municipalities to implement local bylaws that would “make it difficult for non-residents to buy homes.”

According to legal studies conducted by the Canarian Government, local councils have the authority to limit second home acquisitions by non-residents through several mechanisms: requiring a minimum period of prior residence, linking purchases to job offers, or requesting commitments from owners to compulsorily rent properties after periods of vacancy.

Foreign investment impact on local housing market

Regional government spokesman and Deputy Minister for the Presidency, Alfonso Cabello, emphasized that the Canary Islands approached the Barcelona conference “with responsibility, loyalty, and with homework done and a housing proposal.” This proposal involves modifying the Law of Bases of Local Regime to allow agreements with municipalities that could limit foreign housing purchases throughout Spain, particularly in the Canary Islands.

“It should be remembered that 25% of houses purchased last year in the Canary Islands were bought by foreigners, compared to 15% in the rest of Spain,” Cabello stated, highlighting the disproportionate impact on the archipelago’s housing market – a factor that significantly affects both rental availability for visitors and housing accessibility for locals.

Financial flexibility for housing solutions

The regional government also supports using residual cash to finance housing initiatives, defending the position put forward by Finance Minister Matilde Asián regarding the need for more flexible spending rules. “We are the autonomous community with the least debt across all Spanish territory, and if the spending rule is modified, this money could be used not to pay interest to banks but to bring more subsidized or affordable housing to market and address the extreme need for emergency housing,” Cabello insisted.

Ongoing commitment despite political challenges

Despite describing the Barcelona Conference of Presidents as an “absolute failure” in proposing solutions to Spain’s main problems and a “success of bad politics based on political tactics,” Cabello emphasized the archipelago’s determination to continue working. “We will work non-stop to provide solutions to the main challenges facing Canary Islanders, and we will be delighted to explain our comprehensive range of housing-related proposals,” he concluded.

Canary Islands housing restrictions foreigners

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