The much talked about proposal by the Balearic Governments to limit the purchase of properties by non residents faces many legal difficulties, as it clashes with fundamental freedoms established by the European Union.
The EU treaty outlines non-discrimination on grounds of nationality, freedom of residence, freedom to provide services and free movement of capital.
In the past, some EU territories have tried to change these rules, though they have not been succesful.
The Balearic Government has also proposed other restrictions, especially for foreigners who have not been registered in the Balearic Islands for at least five uninterrupted and duly justifiable years. This also clashes directly with the Central Spanish Government, which encourages foreign investment in the housing market, offering residency in exchange for purchasing a home for more than 500,000.00 €, which is called the “Golden Visa”.
The real estate market in Menorca is very active, with consistently high sales, and there is no sign that a political decision could prohibit the sale of houses to people who are not residents of the Island. In fact, the European Commissioner for Financial Services, Financial Stability and Capital Markets Union, Mairead McGuinness assures us that article 63 of the Treaty on the Functioning of the European Union (TFEU) prohibits restrictions on the movement of capital related to the acquisition of real estate.
It is true that Menorca is growing as a destination and its attractiveness makes buying a house on the island a sound investment given the rise in prices for accommodation and other services. That is why the British, French and Germans, among other nationalities, are so interested in acquiring a home on our beautiful island.
If you are thinking of finding your home in Menorca, don’t hesitate in contacting us. Casas en Menorca is an agency of reference, the first on the Island, and, if you have any questions, our tax advisor is at your disposal.
We are waiting for your call in any of our five offices.
