Canary Islands proposes residency requirements for property purchases

The Government of the Canary Islands has submitted a proposal for a royal decree-law to the Spanish central government aimed at restricting property purchases in the archipelago. The proposed ‘Law to Guarantee Access to Housing for Residents in the Canary Islands’ would prohibit both Spanish and foreign citizens from purchasing homes unless they can prove 10 years of continuous residency or 15 years of discontinuous residency, verified via a census certificate (empadronamiento).

Under the draft legislation, individuals would be limited to owning a maximum of two properties, provided they are located in different municipalities. Legal entities, such as investment companies, would only be permitted to acquire residential real estate if their corporate purpose is to sell or rent to individuals. Any transactions that fail to meet these residency requirements would be considered ‘null and void’ and would be barred from registration in the Property Registry.

The regional government, composed of Coalición Canaria and the PP, justifies these measures by citing the archipelago’s unique challenges, including its insularity, limited land area, and fragile biodiversity. By basing the restrictions on residency rather than nationality, the proposal seeks to navigate European Union principles regarding the free movement of capital.