Left-wing party Més per Mallorca has presented an initiative in the Balearic Parliament to allow municipalities in the Balearics to temporarily restrict the sale of homes to non-residents, legal entities and for second homes. The purpose of this bill is to guarantee the residential use of properties and curb speculation in the islands, the eco-sovereignist party reported on Saturday.

The initiative is part of the law to guarantee the residential use of homes and combat speculation, which the general coordinator of Més per Mallorca, Lluís Apesteguia, is presenting to the municipal groups of the eco-sovereignist party. ‘We propose that every family should have their own home and that every home should be used to house a family,’ said Apesteguia during the presentation of the proposal in Algaida, the second stop in a cycle that began in Sa Pobla.

The spokesperson for the Més per Mallorca parliamentary group insisted that, given the ‘housing emergency’ facing the community, ‘exceptional measures’ are needed to ensure that homes are for ‘normal people who want to build their lives in Mallorca’. The proposal is based on the fact that there are already territories in the European Union (EU) that apply restrictions on the purchase of housing, such as Denmark, Malta and the Åland Islands in Finland.

As explained by Apesteguia, both the Treaty on the Functioning of the European Union (TFEU) and several rulings by the Court of Justice of the EU allow restrictions to be imposed on the movement of capital linked to the purchase of housing by non-residents, provided that five conditions are met: overriding reasons of general interest, specificity, proportionality, assessability and non-discrimination.
To justify proportionality, the bill details ten conditions, of which municipalities must meet at least three in order to apply the restrictions.

These include that the purchase or rental price has increased by 3% above the variation in the Balearic CPI over the last five years; that the municipality exceeds the threshold for empty or non-primary dwellings; that the average purchase price is higher than the cumulative ten-year projection of the average net salary in the Balearics; or that the average purchase or rental price exceeds the national average by 35%.

The capacity for evaluation is guaranteed with a ten-year period to review the effects of the restrictions and decide whether to maintain or withdraw them. The specificity is justified by limiting the possible measures to a maximum of three: restricting purchases to non-residents, legal entities and owners who already have a primary residence.

Rules for non-EU/EEA citizens in Denmark
Individuals from outside the EU/EEA face strict rules for purchasing any kind of real estate in Denmark, including primary residences.
To purchase property, you must either:
Have lived in Denmark for at least five years. This does not have to be continuous residency.
Obtain permission from the Department of Civil Affairs (Civilstyrelsen) under the Ministry of Justice.
Permission is not automatically granted. Applications are evaluated on a case-by-case basis, considering your connection to Denmark, such as family ties, employment, or cultural attachments.
A valid residence or business permit is a prerequisite for a non-EU/EEA citizen to even apply for permission.
Secondary residences, such as summer houses, are particularly restricted, and permission is rarely granted.

Conditions and restrictions for all foreign buyers
All foreign property buyers in Denmark should be aware of these additional rules:
Prohibition on speculative buying: Denmark’s laws are designed to prevent foreign speculation in the property market. If a primary residence is purchased with permission, and the owner later leaves Denmark, they may be required to sell the property.
Penalties for non-compliance: If you acquire a property without the necessary permission, the authorities can order you to sell it within a specified period, typically between six months and one year.
Financing: Foreign buyers may face higher down payment requirements, ranging from 5% to 40% depending on the buyer’s status and financial history in Denmark.
Inheritance: The residency and permission requirements do not apply to foreigners who inherit real estate in Denmark.