The EU Opens the Door to Restricting Second-Home Purchases: What It Means for Foreigners Buying in Mallorca
In short: the European Commission has put forward a law that would allow regions like the Balearic Islands to restrict the purchase of second homes, including by foreigners. The Balearic government has already said it is willing to study it. It is not yet a reality: the proposal still needs approval from the Council and the European Parliament, and today there is no restriction at all on buying in Mallorca.
What happened this week
On 9 September 2026, the European Commission presented the Affordable Housing Act, a legal framework that would allow member states, regions and municipalities to restrict the purchase of properties that are not used as a primary residence, in areas where the housing market is under “stress”.
Two days later, on 11 September, the Balearic government’s spokesperson, Antoni Costa, confirmed that the regional executive is “willing to analyse” restrictions on the purchase of second homes by non-residents, provided Brussels allows it. His words, reported by Última Hora, were that the government is “not starting from an ideological position” on this debate.
It is the first time a PP-led Balearic government has shown any openness to this kind of measure, after rejecting a proposal from Més in February 2026 that would have restricted purchases by companies, non-residents and second-home buyers.
What Brussels’ proposal actually allows
It’s worth reading the fine print, because the headline (“Brussels allows banning purchases by foreigners”) oversimplifies what the text actually says. According to the Commission, any restriction would have to meet all of these conditions:
- Be based on objective evidence that the housing market is under stress in that specific area.
- Demonstrate that no less restrictive alternatives would be equally effective.
- Be proportionate and non-discriminatory: the Commission insists they must respect property rights.
- Have a maximum duration of five years, with mandatory periodic reviews.
One key nuance many headlines miss: as drafted, the rule does not distinguish by nationality. It would apply equally to a buyer from Munich, Madrid or Palma looking to purchase a second home in a stressed area. It is not, therefore, a measure specifically aimed at foreigners, even though in practice it’s international buyers who worry about it most, as Libre Mercado reports.
Why the Balearics, and not another region?
The Balearics have long been flagged as one of Spain’s most stressed housing markets, alongside Ibiza, which had already been explicitly calling for this kind of European framework to allow it to limit both second homes and short-term rentals.
The political debate in the Balearics was already heating up: in the regional parliament, parties like Més have spent several terms demanding limits on purchases by non-residents, while the PP, currently in government, had until now opposed this kind of restriction on both ideological and legal-certainty grounds.
Timeline: the measures that already affect (or could affect) foreign buyers
This proposal from Brussels doesn’t stand alone. It’s worth placing it alongside other measures already underway or under debate in Spain and the Balearics:
| Measure | Status as of September 2026 | Who it would affect |
|---|---|---|
| 100% surcharge on transfer tax (ITP) for non-EU buyers | Draft bill announced, pending parliamentary process | Non-resident buyers from outside the EU |
| Restriction on second homes in stressed areas (EU Affordable Housing Act) | European Commission proposal, pending Council and European Parliament approval | Any second-home buyer, resident or not, in areas declared under stress |
| Mandatory short-term rental registration | In force | Owners wanting to rent by the day or week |
| End of the Golden Visa for real estate investment | In force since 3 April 2025 | Foreigners seeking residency through a purchase over €500,000 |
What this means if you’re thinking of buying in Mallorca right now
Based on what we know today, here’s what we tell people who ask us whether they should “wait” or “buy now”:
- There is no active restriction. Today you can buy a property in Mallorca as a foreigner, resident or not, exactly as you could yesterday.
- The EU legislative process is slow. A law like this, even if passed unchanged, usually takes one to three years to be transposed and applied at regional level.
- Any future restriction would have to formally declare “stressed” areas, not apply overnight across the whole of Mallorca.
- Follow the actual status of the proposal on the European Commission’s own housing portal, not just press headlines.
If you’ve already decided to buy and the property is for your own use, this debate affects you less: the measures under discussion are aimed mainly at second homes in high-pressure areas and holiday lets, not at people building their life on the island. If your situation is different — you’re buying as a non-EU non-resident — you’ll also want to read our guide to the 100% transfer-tax surcharge for non-EU buyers, the other measure still being debated in parallel to this one.
This is a fast-moving topic and we’ll update this article if there are meaningful developments in the status of the proposal or the Balearic government’s position.