Canary Islands Aim to Restrict Non-Resident Property Purchases with Legal Reforms

The government of the Canary Islands, under the leadership of Fernando Clavijo, is advocating for legal reforms to restrict property purchases by non-residents. This initiative is designed to combat real estate speculation and equip municipalities with the legal tools necessary to regulate both rental and sales markets. The proposal involves altering national laws, enabling local councils, with regional consent, to designate areas where non-residents are restricted from buying or renting properties.

One key proposal is to amend the Urban Leases Law, setting a 31-day limit on short-term residential rentals for tourism purposes. This change would empower urban planners to ban such activities in certain areas. Additionally, proposed amendments to the Local Treasury Law would allow municipalities to impose taxes on tourist stays by non-residents. Adjustments to capital movement laws are also suggested, permitting the state to halt capital liberalization to safeguard the social function of housing.

The reforms also include a specific law to secure housing access for Canary Islands residents, requiring at least ten years of continuous residency for property purchases. Buyers would be limited to owning two properties for primary and secondary residences. These restrictions, planned for a ten-year duration, aim to keep the housing market accessible to locals amidst external investment pressures.

These proposed measures focus on preserving the residential market for local residents and could significantly influence international buyers and investors. The legal changes reflect a shift toward prioritizing local housing needs, potentially leading to a more constrained market for non-residents. As developments unfold, stakeholders should closely watch how these regulations might alter property dynamics in the Canary Islands.