Balearic Parliament to Debate Ban on Non-Residents Buying Homes — What This Means for Buyers

A proposed ban that could reshape property Spain: what’s at stake

The Balearic Islands have forced a spotlight back on housing policy in Spain after Més per Mallorca put forward a bill to bar non-residents from buying homes on Majorca, Minorca, Ibiza and Formentera. The parliamentary debate is scheduled for 24 February 2026, and the proposal threatens to change the rules for foreigners, investment funds and second‑home buyers across one of Spain’s hottest property markets.

This is about more than safeguards; the debate pits local housing access against an international demand that has pushed prices up sharply in recent years. As real estate advisers, investors and buyers watch, we explain what the bill says, who supports and opposes it, the facts on price inflation, the legal hurdles under EU law, and practical steps for anyone with exposure to Balearic property.

What the bill proposes and who is behind it

Més per Mallorca is the initiator of the draft law. Its MP, Lluís Apesteguia, has framed the measure as a defence of local residents’ access to housing. Key points from the parliamentary proposal and commentary are:

• The ban would apply to Majorca, Minorca (Menorca), Ibiza and Formentera only.
• The measure would prevent individuals who do not permanently live in the islands from acquiring homes there.
• The party says the proposal complies with EU rules and judicial precedent, according to Mr Apesteguia’s statement to the press.

Apesteguia has been clear in his political framing: “We have to prioritise that houses are for living in... and not for those who want to speculate and continue with this game of Monopoly they have set up with our homes.” He says the objective is to stop speculative buying by investment funds and foreign buyers and to make housing accessible to locals.

The political split: who supports and who opposes the ban

The proposal has triggered a clear political split in the Balearic Islands parliament and among local stakeholders. Key political reactions from the press are:

• Més per Mallorca is the sponsor and chief proponent.
• The People’s Party (PP) of the Balearics, represented in comment by Sebastià Sagreras, has said it will vote against the ban.
• Vox, through spokesperson Manuela Cañadas, called the proposal “demagogic”.
• Marc Pons, former president of Menorca’s council, warned that EU restrictions could make an outright ban difficult and suggested alternative measures be considered.

This division is telling: the ban is politically popular with a segment of the electorate grappling with a housing crisis, but it is unpopular with parties that worry about legal exposure and the economic impact on tourism and investment.

The scale of the housing problem: prices and trends

The move follows sustained pressure from locals over rising housing costs. Data reported by property portal Idealista underline why the topic is combustible:

• Idealista named the Balearic Islands the most expensive province in Spain for property in October 2025.
• Sant Joan de Labritja on Ibiza recorded an average price of €8,959 per square metre (£7,830) for resale properties — the highest on Idealista’s list.
• Colònia de Sant Pere on Majorca saw an annual price rise of 37.5%, which Idealista described as remarkable.
• 25 municipalities across the archipelago recorded record prices for resale homes.

Idealista also said the Balearic property market remained “highly attractive” for international buyers, offering luxury living, a Mediterranean lifestyle and perceived investment potential. That attractiveness is precisely what has produced the squeeze on housing availability for year‑round residents.

Legal realities: EU free movement and court precedents

When a regional government proposes restrictions on who can buy property based on residency status, the immediate legal issue is European Union law. The EU guarantees the free movement of capital and non‑discrimination on nationality grounds; member states must show that any restriction pursues a legitimate public interest and that it is proportionate.

Més per Mallorca says the draft is consistent with EU rules and case law. Critics point out the hurdles:

• Courts have previously struck down nationality‑based bans unless the measure was narrowly tailored and justified by pressing social needs.
• Any regional restriction would invite legal challenges from affected buyers or from the European Commission if it sees the measure as breaching EU freedoms.

We should be clear: a regional ban is not impossible under EU law, but it faces a high evidentiary bar. The local government would need to build a robust legal defence showing shortage, clear links between non‑resident purchases and displacement of locals, and that no less restrictive measures would achieve the same goal.

Policy alternatives that are on the table

Opponents and some experts have urged more targeted measures rather than an outright ban. The alternatives that political actors and policy advisers discuss include:

• Residency‑linked purchase rules that give priority to local residents for new allocations or social housing.
• Higher taxes or levies on purchases by non‑residents, or on second homes, to discourage speculative purchases and raise revenue for housing supply.
• Tighter controls on short‑term tourist rentals (licensing caps and stronger enforcement) to take pressure off the long‑term rental market.
• Incentives for building affordable housing and faster approvals for social housing projects.

Marc Pons’s comments about looking at other options reflect a pragmatic view: restrictive purchase bans are blunt instruments and may be legally risky and economically costly.

What this means for buyers, investors and expats

If you are thinking about buying property Spain, and particularly in the Balearics, this debate matters now. Here is what we are advising clients and readers based on the facts and likely outcomes:

• Treat the parliamentary debate as a risk event.