Lawmakers in the Balearic Islands—comprising Mallorca, Menorca, and Ibiza—are considering new legislation aimed at limiting property purchases by non-residents, particularly targeting foreign nationals, including many British buyers. The proposal, put forth by the Left-wing party Més per Mallorca, reflects growing concerns over the impact of foreign property ownership on local housing markets and aims to ensure that residents have better access to housing on the islands.

Currently, foreign nationals own around 90,000 properties in the Balearic Islands, accounting for approximately 16% of the region's entire housing stock. This substantial foreign investment has driven up property prices, exacerbating existing housing affordability issues for local residents. The proposed law would require prospective buyers to have lived in the islands for at least five years before being eligible to purchase property, a move aimed at prioritizing local buyers and curbing the sale of homes to non-residents.

The implications of this legislation are significant, particularly for British citizens, with nearly 12,000 property transactions involving British buyers in recent years. If passed, this measure could drastically reshape the real estate landscape in these popular tourist destinations, leading to potential legal challenges and affecting the long-standing trend of British investment in the Spanish property market.