Central government backs Canary Islands plan to limit property purchases by non-resident foreigners
Spain’s Housing Minister has given her support to the Canary Islands’ proposal to limit the purchase of residential property by foreigners who are not resident in the archipelago, in an effort to tackle soaring property prices.
The announcement came after a meeting in Madrid between the Minister for Housing and Urban Agenda, Isabel Rodríguez, and the Canary Islands’ Regional Minister for Housing, Pablo Rodríguez.
According to the Canarian government, national authorities agree that the islands face unique pressures: a combination of short-term holiday rentals and high property demand from foreign buyers is pushing up prices, reducing the number of homes available for local residents, and threatening the islands’ social balance.
One in three home purchases is made by non-resident foreigners
The Canary Islands’ Housing Minister highlighted that in recent years, around 33% of all property sales in the islands were made by foreigners who do not live in the archipelago.
He warned that with limited housing supply and increasing demand, local people are finding it harder to settle, start families and afford long-term homes.
The Spanish government has now agreed to defend the proposal at EU level, a necessary step because any restriction on property purchases by EU citizens must comply with European law.
Adapting the national housing plan to island realities
The Ministry has also accepted 80% of the Canary Islands’ proposals for updating Spain’s State Housing Plan, ensuring that national policies take into account the islands’ special circumstances as an outermost EU region.
Key Canarian requests include:
• Updating how state housing funds are distributed — current criteria date back to 1991
• Recognising the higher cost of building and maintaining housing in island territories
• Adjusting income thresholds for access to public housing and rental aid
• Allowing administrative and management costs to be covered by the plan
• Measures to reduce rental arrears and give landlords stronger legal protection, encouraging more long-term rental availability
The Canary Islands also recently raised concerns at a European Islands Commission meeting in Barcelona, saying the EU lacks a clear strategy for dealing with housing pressures in island regions.
A more flexible approach
The Canarian government argues that housing policy cannot be “one-size-fits-all” and must be flexible enough to account for island-specific challenges such as limited land, tourism pressures, higher logistics costs and lower wages.
Regional officials say Spain’s support strengthens their goal of expanding affordable public housing and ensuring that people living in the Canary Islands can access a decent home.
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