The Balearic Islands government is determined to move forward with their proposal to limit non-resident purchases of housing on the islands, despite opposition from the Spanish central government. The government believes that such limitations are necessary to address the housing crisis in the region, but the Spanish central government has stated that any such restriction must be necessary, proportionate, and non-discriminatory. The government intends to continue negotiations with Europe and Spain to address the issue, given the complexity of the problem that affects European law. The government has created a working group to conduct technical studies to determine how best to limit or regulate the purchase and sale of housing to non-residents. The group’s main objective is to obtain the necessary reports to negotiate with the State and the EU effectively. The Balearic Islands government believes that the restriction could be a solution to the housing problem, but it recognizes that it is a complex issue that requires careful consideration to avoid any unintended consequences. While the government believes that the restriction is necessary to maintain affordability for local residents, there is a risk that it could harm the real estate market and the economy. Other regions, including Catalonia, have already implemented similar restrictions. The Balearic Islands government’s proposal is controversial, as the freedom of movement of capital under article 63 of the Treaty on the Functioning of the European Union protects the right of European citizens to purchase second homes in another EU member state. The government, however, argues that the restriction is necessary, given the limited territory and demographic pressure in the region.
For the full article, please visit Diario de Ibiza website here.