The European Union recalls that limiting the purchase of homes to non-residents is only possible for “overriding reasons of general interest”
The European Commission has reminded that limiting the purchase of housing to non-residents is only possible for “overriding reasons of general interest”. In this way, the European Commissioner for Capital Markets Union, Mairead McGuinness, has responded to the question of the PP MEP, the Majorcan Rosa Estaràs, on the limitation of the purchase of real estate by non-resident foreigners in the Islands.
McGuinness alluded to Articles 63 and 65 of the Treaty on the Functioning of the European Union. The legislation prohibits the restriction of the movement of capital to purchase real estate by non-resident EU nationals. It could only be justified by reasons “of overriding general interest, non-discriminatory and proportionate to the objective pursued without going beyond what is necessary” that are recognized in the case law of the European Court of Justice.
The Balearic National and International Real Estate Association, ABINI, affirms that in the Balearic Islands this is not fulfilled in any case and they applaud Europe’s response. According to them, “the limitation to the purchase by foreigners goes against the current legislation”.