Regional legislators in Palma de Mallorca have ignited a political firestorm by tabling a bill that would prohibit non-resident foreigners – most visibly British expats – from purchasing homes in the Balearic Islands unless they have lived on the archipelago for at least five consecutive years. The proposal, unveiled on 21 February 2026 by the eco-nationalist party Més per Mallorca, comes amid record tourism numbers (19 million visitors in 2025) and property prices that now average €5,120 per m², the highest in Spain. If passed, the measure would directly affect an estimated 90,000 foreign-owned dwellings, 16 % of the islands’ housing stock. British citizens alone accounted for nearly 14 % of all Spanish property transactions last year, many of them second-home purchases in Mallorca and Ibiza. Local activists blame the influx for pricing nurses, teachers and hospitality workers out of the rental market; average rents in Palma have risen 38 % since 2020, according to Idealista. Supporters argue the five-year residency test respects EU free-movement rules because it applies equally to all nationalities and is tied to ‘genuine connection’ rather than passport. Critics, including Spain’s Ministry of Housing, warn the law could breach single-market principles and deter inward investment just as the national government phases out the Golden-Visa scheme. Legal scholars note that comparable restrictions exist in Denmark and the Channel Islands, but those regimes required Brussels sign-off when they were introduced.
![Balearic Islands consider five-year residency rule that could bar British buyers]()
Prospective buyers and international assignees who need clarity on Spain’s residency or visa pathways can turn to VisaHQ, which streamlines applications for Spanish visas, residence permits and other travel documents. The company’s step-by-step online platform and expert support reduce paperwork headaches; full details are available at https://www.visahq.com/spain/
For global-mobility managers, the bill is a red flag. Companies relocating staff to Palma’s burgeoning tech and renewable-energy clusters may need to shift from home-purchase to corporate lease models, budget for higher accommodation allowances, or consider mainland alternatives such as Valencia. Real-estate advisers say deals already in the pipeline are being rushed to notaries in case retroactive clauses are inserted during parliamentary debate. British residents with less than five years on the islands fear that future job moves could trigger forced divestment if they temporarily lose residency. The Balearic parliament will open public consultations in March, with a final vote expected before the summer tourist season. Whatever the outcome, analysts predict other high-pressure markets – Barcelona’s Ciutat Vella district and parts of the Canary Islands – will watch closely as Spain experiments with property-linked mobility controls.
Prospective buyers and international assignees who need clarity on Spain’s residency or visa pathways can turn to VisaHQ, which streamlines applications for Spanish visas, residence permits and other travel documents. The company’s step-by-step online platform and expert support reduce paperwork headaches; full details are available at https://www.visahq.com/spain/
For global-mobility managers, the bill is a red flag. Companies relocating staff to Palma’s burgeoning tech and renewable-energy clusters may need to shift from home-purchase to corporate lease models, budget for higher accommodation allowances, or consider mainland alternatives such as Valencia. Real-estate advisers say deals already in the pipeline are being rushed to notaries in case retroactive clauses are inserted during parliamentary debate. British residents with less than five years on the islands fear that future job moves could trigger forced divestment if they temporarily lose residency. The Balearic parliament will open public consultations in March, with a final vote expected before the summer tourist season. Whatever the outcome, analysts predict other high-pressure markets – Barcelona’s Ciutat Vella district and parts of the Canary Islands – will watch closely as Spain experiments with property-linked mobility controls.
