The Balearic Government has pushed back against proposals to restrict the purchase of second homes by people who do not reside in the islands, as the debate over housing affordability continues across Mallorca, Ibiza, Menorca and Formentera.

The issue has become part of a wider European discussion following the European Commission's proposed Affordable Housing Act, which includes a framework for possible measures affecting second homes in areas experiencing housing pressure.

However, no EU restriction on second-home purchases has been adopted, and the current European proposal does not itself introduce a ban on non-resident buyers.

PP Says It Does Not Support Restrictions

On September 17, Elías Bendodo, the Partido Popular's deputy secretary for regional and municipal policy, backed Balearic President Marga Prohens' position when asked about restricting property purchases by people who do not reside in the islands.

Bendodo said the PP would not support such a measure, arguing that the party does not want to restrict economic activity or people's freedom.

His comments followed the growing debate over whether the Balearics could introduce controls on purchases by non-residents as part of efforts to address housing pressures.

The Government's Position Has Evolved During September

The position needs some context because the Balearic Government had previously left the door open to examining possible restrictions.

On September 11, Vice-President Antoni Costa said the Government would analyse the European Commission's proposal and would consider measures if they were legally possible and could improve access to housing for people living in the islands.

Costa specifically said that restricting purchases by non-residents was not currently feasible under the existing framework, but that the Government was prepared to examine the new European proposal.

A few days later, Prohens said her Government would examine measures that were legally viable and effective, provided they did not place the burden on families and residents of the islands.

That means the current position is more nuanced than a blanket statement that the Balearic Government will reject every possible restriction. The Government is examining the emerging European framework while opposing measures that it considers would affect Balearic residents.

What Is the European Commission Proposing?

The European Commission's housing initiative has opened a discussion about regulating second-home purchases in areas experiencing severe housing pressure.

The proposal does not simply introduce a Europe-wide prohibition on non-residents buying property.

Instead, it seeks to establish a common framework and conditions under which restrictions could potentially be used by authorities that have the necessary powers under national law.

The European Commission has also stressed the importance of proportionality and compatibility with EU rules, including the free movement of capital.

No New Ban Has Been Introduced

The current debate should therefore not be interpreted as meaning that non-residents are now prohibited from buying second homes in the Balearics.

There is no new Balearic ban currently in force.

Any future restriction would require an appropriate legal basis and would have to comply with Spanish and European law.

The European proposal itself is also still part of the legislative process.

Housing Has Become a Major Political Issue

The debate comes as housing affordability has become one of the most contentious issues in the Balearic Islands.

Property prices and rents have risen significantly in recent years, while population growth and limited housing supply have increased pressure on the residential market.

The Balearic Government has responded with measures including affordable housing programmes, financial assistance for eligible residents and restrictions on the creation of new tourist accommodation.

For example, a current Balearic housing assistance programme provides up to €10,000 towards the purchase of a home for eligible applicants under 40 who meet the residency and other requirements.

Different Political Positions

The issue has produced clear differences between the political parties.

The PP has rejected a general restriction on non-resident second-home purchases, while opposition parties have argued for stronger measures aimed at giving people living in the islands greater access to housing.

PSIB candidate Rosario Sánchez said on September 16 that, if her party forms the Balearic Government after the 2027 election, she would seek to restrict second-home purchases by non-residents.

Her proposal is a political commitment for a future government, not a measure currently in force.

The Debate Also Concerns Second Homes

Second homes are an important part of the Balearic housing discussion.

Opposition politicians have pointed to the large number of properties classified as second homes and argued that the availability of these properties affects the supply of homes for permanent residents.

The Government has responded by highlighting its programme for affordable and social housing and other measures designed to increase supply.

The statistics and their interpretation remain politically contested, so the number of second homes should not automatically be treated as equivalent to the number of homes that could immediately become permanent residences.

Ibiza Is at the Centre of the Housing Debate

The issue has particular relevance to Ibiza, where property prices and rents have become major concerns for residents and workers.

The island has also seen significant interest from international property buyers, while tourism creates additional demand for accommodation.

During her September visit to Ibiza, Housing Minister Isabel Rodríguez called for greater regulation of tourist apartments and discussed housing investment and the role of public housing in addressing the island's housing pressures.

Her comments were part of the broader national housing debate and did not create a new restriction on foreign or non-resident property purchases in Ibiza.

Public Housing Remains Another Part of the Response

The Spanish Government is also working with the Balearic and local authorities on public housing projects.

At Ca n'Escandell in Ibiza Town, 532 affordable rental homes are planned across three plots.

A separate proposal would involve Casa 47 transferring its 60% interest in one plot to IBAVI, with €14 million in funding for the construction of 102 homes. That arrangement was still under discussion in September and had not yet been completed.

What Happens Next

The European Commission's housing proposal will continue through the EU legislative process before any new framework comes into force.

For the Balearics, the question is therefore not currently whether a new restriction has been approved, but whether future European and Spanish rules could provide the legal basis for measures that give residents greater protection in housing markets under pressure.

For now, the Balearic Government is continuing with its existing housing policies while examining the European initiative.

The latest PP position makes clear that the party does not support a general restriction on non-resident second-home purchases, while the wider debate over how to improve access to housing for people living in the islands remains unresolved.