Ten-Year Residency Requirement for Property Purchase Proposed in the Canary Islands

Seven years after moving from France to Santa Cruz de Tenerife, I've noticed how the local real estate market works. Now, the Canary Islands government has proposed a new law that could significantly impact expats and digital nomads like myself. The proposal requires a minimum of ten years of residency or fifteen continuous years of living in the islands before residents can buy a home.

According to Alfonso Cabello, a government spokesperson, the idea is to ensure that property purchases are made by residents who have a long-term connection to the islands. Under this new rule, residents would be allowed to purchase up to two homes, one as a primary residence and the other as a holiday property. Additional properties may incur taxes linked to their use as rental units, particularly if owned by companies.

It's worth noting that about 30% of homes in the Canary Islands are currently bought by non-residents, leading to concerns over speculative purchases. The initiative aims to restrict such purchases, leveraging Article 349 of the EU Treaty, which allows for special regional considerations. Cabello highlighted that the government's housing policy has seen four legal modifications this term, including plans to construct 4,000 public homes with a residency requirement of over ten years for applicants.

This proposal could affect how expats and digital nomads approach property ownership in Tenerife. If you're considering buying a home, you might need to plan for a longer stay in the islands. Keep an eye on further developments, as the proposal will need approval from the Permanent Council.