The acquisition of real estate in Spain – including Mallorca – will become significantly more complicated for citizens from non-EU countries in the future. Prime Minister Pedro Sánchez (PSOE) announced in Madrid on Monday that property purchases by non-resident non-EU foreigners would be considerably restricted.
“We have decided to regulate the acquisition of real estate by this group,” Sánchez explained. The measure is to be implemented through a drastic increase in the real estate transfer tax of up to 100 percent of the property value. “This initiative is unique in Spain so far, but is already practiced in countries like Denmark and Canada,” he added. This mainly affects British and Americans, who recently showed significantly more interest in Mallorca, especially due to direct flight connections there.
This measure is intended, among other things, to help regulate the very tight housing market on the island and provide sufficient housing, especially for locals. Whether this approach will actually change the situation in reality remains to be seen.
