The possible limits placed on the purchase of a property by non-residents in the Balearic Islands is a subject of current interest in the real estate sector. However, and even though the Balearic Government is contemplating restricting this activity, current legislation does not allow the government to intervene in this type of business operation.
The Managing Director of Pollentia Properties, José Martín, attended a Round Table organized by the Cercle d ´ Economia to discuss this matter and to make any necessary clarifications. Public figures such as the President of the island government, Francina Armengol, the President of the Consell de Mallorca, Catalina Cladera and other important people in public office also attended the event.
After attending this event, Pollentia Properties is in a position to guarantee that any limits will not mean a ban on buying properties only that regulations to mitigate the housing problem will be put in place if possible. The aim is for the Central Government to acknowledge Mallorca as being a special territory in this regard. Buying a property will not be banned.
Measures that contemplate banning the purchase of properties are unconstitutional, according to the Illeslex lawyers office. This type of measures are unacceptable within the framework of European law which Spain adhered to from the moment they joined this international organization in 1986.
Banning the purchase of properties has been attempted at different times in different European countries. None of them have ever obtained legitimacy for this restrictive legislation and it has always ended up as a mere attempt. However, the aim of the limits contemplated in Baleares corresponds to a framework of legislation arising from the high number of buyers interested in acquiring a property in an area limited in size. For this reason, one measure proposed in this respect is an increase in the Property Transfer Tax (ITP) for properties worth over one million euros but this will never signify a ban on citizens from overseas from buying a property in Mallorca.
The autonomous Government, according to what was stated during the event at the Cercle d ´Economia attended by José Martín, is aiming to obtain s pecial acknowledgment as populated islands, first at a national level and later at a European level. This implies joining with other island territories in Europe such as the island of Gozo (Malta) and Corsica.
Pollentia Properties, with many years of experience in the field of real estate at an international level, has firsthand knowledge of this sector of Mallorca. Pollentia Properties has a commitment with owners, investors and potential buyers and we advise and assist them with buying and selling properties in Mallorca.
BIBLIOGRAPHY
Blas, Javier and Lladó, Clara (Illeslex) - REFLECTIONS ON POSSIBLE RESTRICTIONS ON NON-RESIDENTS FOR THE PURCHASE OF A PROPERTY IN THE BALEARIC ISLANDS (2022)
