Canary Islands Seek to Restrict Foreign Homebuyers
The Canary Islands government is gathering legal arguments to push for one of its key legislative goals: limiting property sales to non-residents. Housing Minister Pablo Rodríguez outlined potential measures, including minimum residency requirements, pre-purchase authorization, and higher taxes on foreign buyers. The move aims to address a growing housing crisis fueled by soaring demand and limited supply.
Roots of the Housing Crisis
The archipelago’s population has grown by over half a million in the last two decades, yet housing construction plummeted after the 2007 financial crisis. Annual new builds dropped from 30,000 to just 1,500 today. Meanwhile, non-residents—primarily EU citizens—purchase roughly a third of all homes sold, placing the Canaries among Spain’s top three regions for foreign-owned property, alongside the Balearic and Valencian regions.
Political Pushback and Local Concerns
Santa Cruz de Tenerife Mayor José Manuel Bermúdez criticized Spain’s central government for ignoring the Canaries’ proposal to amend local housing laws, presented months ago at a regional leaders’ conference. “One in four homes ends up in foreign hands,” he stressed, framing the issue as vital for preserving islanders’ rights. “This is about ensuring Canarians aren’t priced out of their homeland and can build futures here.”
A Fight for Affordable Living
With tourism hotspots seeing drastic price hikes in sales and rentals, officials argue unique geographic and economic realities justify stricter rules. Rodríguez remains confident the EU will recognize the islands’ “ultra-peripheral” status as grounds for tailored solutions. The debate underscores a deeper tension: balancing economic benefits from foreign investment against locals’ access to housing in their own archipelago.
