Spain's property market faces intense pressure from both domestic and international buyers. As EU membership rules prohibit national restrictions on real estate transactions, authorities and experts are considering fiscal measures as a potential solution to rising property prices and speculation in regions like the Balearics.
The legal framework established during Spain's accession to the European Union excluded specific limits on property purchases for non-residents. In contrast, several other EU countries introduced such restrictions to protect local access. Given these legal constraints, experts such as geographer Marcús advocate focusing on the use and regulation of residential properties, suggesting a package of targeted tax incentives and penalties.
Local Authorities and Anti-Speculation Strategies
Marcús highlights the pivotal role of local councils, pointing out that, "If no action is taken at the local level, housing will continue to move from being a daily necessity to merely an investment asset." He proposes the introduction of anti-speculation fiscal policies, such as surcharges on empty dwellings, variable fees promoting long-term residential use, stricter enforcement against illegal short-term rentals, and leveraging the pre-emptive purchase right known as tanteo.
Unresolved National Proposals
During a recent EU summit in Brussels, Prime Minister Pedro Sánchez tentatively raised the idea of limiting the purchase of second homes in high-pressure areas across Europe. However, further details remain unclear, including whether any such policy would affect only foreign or non-island residents, or if local residents in those regions may also be impacted.
Corporate Influence and Market Dynamics
Beyond the buying interest from foreign nationals, corporate purchases are also shaping the Spanish housing market. Currently, around 15% of all home transactions in the Valencian Community are made by companies instead of private individuals, adding another layer to the housing challenge confronting Spanish policymakers.