The Canary Islands are ramping up efforts to limit the sale of residential properties to non-residents, and this time, they want all Spanish municipalities on board.
With legal room tightening regionally, the regional government of the Canary Islands aims to elevate the issue to national prominence—putting housing access for locals ahead of speculative interest from foreign buyers.
Targeting speculation through local rules
During a parliamentary session last week, Canarian president Fernando Clavijo announced that his government will present a proposal at the upcoming Conference of Presidents in Barcelona on 6 June. The central aim: to amend Spain’s Local Government Act, enabling municipalities to introduce ordinances that “complicate” rather than outright ban foreign purchases, using tools such as minimum residency requirements or proof of local employment.
“We’re not proposing a prohibition,” insisted Clavijo. “But we believe municipal governments should have the power to put local needs first and dampen the pressures foreign demand places on housing markets.”
The proposal is part of a wider strategy by the Canary Islands to safeguard access to housing, particularly in areas with high second-home ownership. It dovetails with the region’s push at the European level to treat outermost regions (RUPs) differently under Article 349 of the EU Treaty—allowing targeted protections for affordable housing supply and rental markets.
Backing local governments, confronting national hurdles
The Canarian leadership argues that the Spanish state, under its basic competency in local governance, could authorise municipalities to implement such restrictive tools. Legal studies commissioned by the regional government suggest that city councils may, for instance:
- Link property purchases to a minimum period of local residence.
- Require evidence of employment in the area.
- Flag properties left vacant beyond six months.
- Impose mandatory use or rental conditions on luxury purchases.
Proponents say this type of regulation could reduce speculative buying, ensure more homes are inhabited year-round, and help tame housing pressures in tourism-heavy areas.
PSOE wants big landlords to finance public housing
The Socialist Party (PSOE) welcomed parts of the Canarian initiative but offered its own diagnosis and solution. Speaking in Parliament, PSOE spokesperson Sebastián Franquis highlighted the alarming concentration of property ownership in the islands: “Four individuals own more than 620 homes, and 73 companies control over 19,300 units.”
Franquis announced a legislative proposal to raise the Property Transfer Tax (ITP) on high-volume owners, with proceeds earmarked exclusively for public housing initiatives. The Socialists also want to establish a national registry of large landlords to assist in state intervention and market monitoring.
Clavijo open to collaboration—but wants housing law reform
Surprisingly, President Clavijo encouraged Franquis to share the legislative draft ahead of the Barcelona summit. However, he also urged PSOE to press the central government to revise Spain’s national housing law, which Clavijo blamed for exacerbating market dysfunction: “It’s pushed homes out of the rental market and sent prices soaring.”
In the meantime, the Canary Islands will continue forging their legal path—with a growing roster of proposals aimed at reducing foreign ownership, prioritising long-term rentals, and increasing housing availability for locals.
Migration, debt and fiscal flexibility also on Clavijo’s agenda
While housing is set to dominate the debate in Barcelona, Clavijo also plans to revive discussions around a structural migration compact—proposed with Basque support—that failed to gain traction at December’s summit in Santander.
He’s also calling for:
- Enforcement of the Supreme Court’s ruling on asylum-seeking minors, obligating the state to assume responsibility for more than 1,000 unaccompanied minors in the islands.
- A general debt relief framework, noting that “forgiving debt for some shouldn’t be paid by all.”
- Loosening Spain’s spending cap to allow the Canary Islands to deploy its own surpluses more freely.
- Ensuring the Canary Islands’ REF (Fiscal and Economic Regime) is delinked from upcoming national financing reforms.
Conclusion: Housing debate goes national
Though the housing squeeze is most acute in tourist-heavy enclaves like the Canary Islands and Balearics, Clavijo’s bet is on national traction. If local governments across Spain are empowered to act against speculative foreign ownership, it could mark a significant—and controversial—shift in Spanish housing policy.
