Thousands of Britons dreaming of a sun-soaked holiday home in Spain could be facing a major hurdle.
Lawmakers in the Balearic Islands—including Mallorca, Menorca, and Ibiza—are discussing proposals that could make it illegal for non-residents to buy property unless they’ve lived on the islands for at least five years.
The move comes amid mounting frustration from locals who argue that second-home buyers are pushing property prices beyond the reach of native residents.
Alongside this, another draft law under consideration could impose a 100 percent tax on non-European buyers, effectively doubling the cost of a home purchase for some international investors.
While these proposals might sound like a door slamming shut, the broader Spanish property market remains open.
Mainland regions are still welcoming foreign buyers, and Britons continue to be among the most active, purchasing nearly 12,000 properties across Spain in 2024 alone, according to Idealista.
Affordable Options Across Spain Remain Available
For those willing to explore beyond the islands, Spain offers a wide range of properties—from vibrant city apartments to quiet rural retreats.
Valdepenas de Jaen, Andalucia – €19,995 (£17,470)
This small village sits between the Sierras del Trigo and La Grana mountains.
Perfect for hiking and fishing enthusiasts, the two-bedroom terrace property comes with a spiral staircase, a patio, and additional land with walnut trees.
Granada Airport is 78 km away.
Barcelona, Catalonia – €450,000 (£391,000)
City lovers can enjoy a renovated three-bedroom penthouse in Barcelona, complete with an open-plan living area, terrace, jacuzzi, and barbecue.
The city is rich with culture, history, and its famous beaches, just 17 km from the airport.
Blanca, Ricote Valley, Murcia – €32,000 (£27,956)
For a more traditional experience, Blanca offers a detached three-bedroom town house with roof terrace, surrounded by mountains and historic buildings.
Murcia Airport is only 48 km away.
Cuevas de San Marcos, Malaga, Andalucia – €55,000 (£48,050)
This town of 3,800 residents offers a three-bedroom home near walking and biking trails, water sports, and an hour from the coast. Malaga Airport is 90 km away.
Muniesa, Teruel, Aragon – €24,000 (£20,882)
A three-bedroom single-storey house built in 1900 offers space, a garden, and a basement for storage.
Perfect for nature lovers and hikers. Zaragoza Airport is 72 km away.
Other properties highlighted include Sitio de Calahonda, Somontín, Ciudad Quesada, Alozaina, San Fulgencio, Reina, and Los Alcázares—ranging from budget-friendly village homes to luxurious villas with pools and gardens, showing that Spain still has diverse options for British buyers.
Why Brits Keep Buying Despite Rising Costs
Experts say that the attraction of Spain for British buyers is not just the sun and beaches, but also the lower cost of living, the variety of landscapes, and investment potential.
Even if property prices rise in the Balearics, mainland towns and coastal areas offer good value, especially for first-time buyers or those seeking a second home with rental potential.
What’s Next?
The next few months will be critical for the Balearic property market.
If the laws pass, British buyers and other international investors will need to adjust their plans or focus on mainland Spain.
Meanwhile, developers and estate agents are likely to push mainland alternatives, while locals and campaigners will continue lobbying for regulations that protect residents from price inflation caused by holiday homes.
Buyers already in the market may face uncertainty, but Spain remains one of Europe’s most welcoming countries for foreign property investment, particularly in regions outside the islands.
Summary
Spain’s Balearic Islands may introduce strict new rules restricting property purchases for non-residents and imposing heavy taxes on non-European buyers.
However, opportunities remain across mainland Spain for those seeking affordable homes or holiday properties.
British buyers remain active, and regions from Andalucia to Valencia offer diverse options from budget-friendly village houses to luxury coastal villas.
Potential changes in legislation will determine where international buyers focus their attention over the next few years.
