Canary Islands Government proposes ten-year residency rule for home buyers

Anyone wanting to buy a home in the Canary Islands could have to prove they have lived in the archipelago for at least ten years under proposals sent to the Spanish Government.

The draft would require buyers to show ten years of continuous residence, or 15 years where their residence has been interrupted, using their registration on the local council’s padrón.

The requirement would apply regardless of nationality, affecting Spanish citizens moving from the mainland as well as overseas buyers.

However, the proposal is not law and has not introduced a new restriction on property purchases as yet.

For British residents and people hoping to buy a holiday home in Tenerife, Gran Canaria, Lanzarote or Fuerteventura, the important distinction is that eligibility would depend on their residence history. Simply having resident status would not, on its own, satisfy the proposed ten-year requirement.

A limit of two homes

The draft also proposes allowing an individual to buy a maximum of two homes, provided they are in different municipalities.

Companies and investment businesses would face separate conditions, with purchases restricted to those whose corporate purpose includes selling or renting homes to individuals.

Purchases that failed to meet the proposed requirements would be legally invalid and could not be entered in the Property Registry. Homes passed on through inheritance would be exempt.

The draft restrictions are intended to operate for ten years from their approval.

Why is the government proposing this?

The Canary Islands Government argues that the islands’ limited land and pressure on housing make specific measures necessary to help residents find somewhere to live.

Its case focuses on homes being bought for purposes other than permanent residence, and the effect this can have on people trying to buy a home locally.

The government is seeking to base the restrictions on residence rather than nationality. It also points to the Canary Islands’ special status as an EU outermost region as grounds for different treatment.

Regional government spokesperson Alfonso Cabello has defended the proposals, saying they have been prepared with specialist legal advice. That does not mean the necessary approvals have been secured.

What happens next?

The Spanish Government would need to take the proposals forward before the restrictions could come into force.

For now, the ten-year requirement remains part of a draft. There is no confirmed start date, and the final conditions could change during the legislative process.