The Canary Islands propose selling homes only to those who have lived there 10 years: what it means for buyers

In brief

• On 15 October 2026 the Canary Islands government sent Madrid a draft decree-law on access to housing for island residents.
• Only those registered on the padron in the islands for 10 years, or 15 years if residence was interrupted, would be able to buy a home.
• The rule is the same for everyone: foreigners, EU citizens and Spaniards from the mainland. Inheritance is an exception.
• One resident could own no more than two properties in different municipalities. Companies could buy homes only to sell or rent them to individuals.
• Non-compliant deals would be void. Spain's Council of Ministers must approve the draft, and restrictions of this kind need to be agreed with the European Commission.
• For now purchases in the Canaries follow the existing rules.

15 October 2026: what the Canaries proposed

The draft is called a law guaranteeing access to housing for residents of the Canary Islands. The regional government led by Fernando Clavijo sent it to the Spanish government as a draft royal decree-law. Such a document is adopted by the country's Council of Ministers and takes effect at once, with parliament confirming it afterwards.

The key condition is length of residence. Only someone who proves 10 years of registration on the padron, the municipal register of residents, would be able to buy a home in the islands. If residence was interrupted, 15 years are needed. Crucially, the criterion is residence, not nationality. The Canary government stresses that this avoids discrimination by nationality, which EU law expressly forbids.

The draft became part of an agreement between the regional party Canarian Coalition and the governing Socialist Party, in exchange for supporting a decree protecting vulnerable tenants from eviction. According to Canary government spokesperson Alfonso Cabello, the draft rests on opinions by the region's lawyers, and the islands need special measures different from the rest of Spain.

What this means for you. Until the Council of Ministers approves the draft, nothing has changed. A buyer signing a contract today buys under the current rules.

Who would the ban affect?

If adopted as drafted, it would affect everyone without 10 years of padron registration in the islands. That includes foreigners wanting a holiday home or a home to move to, citizens of other EU countries, retirees from Northern Europe, digital nomad visa holders who have lived in the islands for a year or two, and even mainland Spaniards who moved to the Canaries recently.

The draft would not affect those who already own homes in the islands: it concerns new purchases. Nor would it affect inheritance: the draft expressly excludes inherited homes from the restrictions. Residents with 10 years of registration could buy, but no more than two properties, and in different municipalities: one to live in and a second as a holiday home. Owners of two or more properties would be treated as non-residents.

A note on companies. A company or investment structure could buy a home only if its business purpose is selling or renting homes to individuals. Purchases of additional properties would face municipal taxes designed to push such flats onto the long-term rental market.

What this means for you. If you live in the Canaries on a digital nomad visa or as a retiree and planned to buy in a couple of years, the draft directly affects you. Waiting 10 years to buy is a very different plan.

Why the draft will struggle to get past Brussels

Restricting property purchases is a sensitive issue under EU law. The Treaty on the Functioning of the EU guarantees the free movement of capital, and buying a home is one of its forms. Early versions of the Canary draft directly conflicted with the treaties because they distinguished buyers by nationality. The current version relies on residence rather than nationality, and on Article 349 of the treaty, which allows special measures for the EU's outermost regions, including the Canaries.

Even in its new form the draft needs the Spanish government's approval and the European Commission's agreement. According to press reports, the Canary government has spent this whole term seeking Brussels' permission for purchase restrictions, and Fernando Clavijo is due to meet Commissioner Raffaele Fitto in November. If the draft is not approved before Spain's general election, it will have to wait for a new government.

Similar restrictions exist in the EU, but they are narrow. In the Åland Islands of Finland, for example, buying land requires regional right of domicile or a permit. The Canary draft is broader: it covers all housing in the islands. So the legal fate of the draft is unclear, and we will follow decisions in Madrid and Brussels.

What this means for you. The draft's chances depend on politics and on the European Commission's position. It is too early to plan as if the ban were in force, but it cannot be ignored either.

2 years of residence: a second measure for non-EU citizens

Alongside the decree, the Canary government proposed that the Council of Ministers amend the local government law. Under this proposal municipalities could bar non-EU citizens who have lived in the municipality for less than two years from buying or renting homes. Unlike the first measure, this one distinguishes people by nationality, and it affects in particular UK citizens, who make up the main flow of tourists.

In addition, municipalities could introduce a tourist charge on overnight stays by non-residents and ban short-term holiday lets in certain districts. For owners who let to tourists this may matter more than the purchase ban: income from such lets would become less predictable.

What this means for you. If you are a non-EU citizen renting in the Canaries for a short time, watch your municipality's decisions: the fastest restrictions may appear at that level.

A third of deals by foreigners: the market they want to cool

According to figures cited by the Canary government, around a third of homes changing hands in the islands are bought by foreigners, and many of them end up as tourist lets. Island analysts give similar figures: about 36% of homes sold between 2007 and 2025 went to foreigners. Local residents complain that prices and rents are rising faster than incomes, while the islands are small and little new housing is built.

The problem is familiar to many resort regions of Southern Europe. Spain already caps rents in stressed areas, as we wrote in the article on rent caps in Spain. In Cyprus parliament is discussing purchase restrictions for non-EU citizens, as covered in the news on Cyprus purchase rules. The Canaries go further: their draft covers all non-residents, including Europeans.

What this means for you. Resort property in Southern Europe is becoming a target of regulation. Anyone buying for tourist-let income now takes on more political risk than a few years ago.

Checking a purchase plan in the Canaries

Until the draft is adopted, buying in the Canaries follows Spain's usual rules. A foreigner needs an NIE foreigner tax number, a Spanish bank account for payment, a notarial deed and registration in the property register. If you have already chosen a property, it matters to take the deal through to registration: under the draft, deals made after the rules take effect would be void.

The usual sequence is this: after choosing a property the parties sign a deposit contract, typically with a deposit of about 10% of the price, then sign the deed before a notary and file it for registration. A few weeks to a couple of months usually pass between the deposit and the deed. If the rules change in that window, the deal's terms may be called into question, so it is worth keeping the timeline short.

If you are considering Spain not to buy but to live, note that Spain abolished its golden visa for property in 2025; more in the article on the Spanish golden visa. For those living on passive income there is the non-lucrative visa, compared with Portugal's D7 in the article D7 or the Spanish non-lucrative visa. For remote workers there is the digital nomad visa, covered in the article on the Spanish digital nomad visa.

What this means for you. Spain no longer grants residence for buying a home, so a purchase in the Canaries today is a decision about housing or income, not status.

Spain for living: the grounds that remain

For those planning to live in the Canaries, the basis of stay matters, not just the purchase. EU citizens live in Spain under free movement and register as residents. Non-EU citizens need a visa or residence permit: the non-lucrative visa requires proof of income of at least 400% of Spain's IPREM indicator for the main applicant, and remote workers can use the digital nomad visa.

If the 10-year draft is adopted, these grounds will not change, but the link between living and owning will: you would have to rent for several years. For a family this means a different budget and a different calculation: rent instead of a mortgage, and buying only after a decade of living in the islands. You can find a basis for living in Spain and other countries in the residence catalogue.

For an investor the conclusion is different. If buying for status is no longer possible and buying for tourist lets is becoming risky, the Canaries remain a market for those who live in the islands themselves. Data on why people buy homes abroad today are in the news on purchases for residence. Property selections in different countries are in the real estate section.

What this means for you. The Canaries remain a place to live but are ceasing to be a place for a quick purchase. Plan a move so that housing is a matter of renting for the first years.

How this article was prepared

The article is based on Spanish news agency reports of 15 and 16 October 2026 on the draft royal decree-law the Canary Islands government sent to the Spanish government, setting out its terms and statements by the Canary government spokesperson. The share of foreign buyers is given according to Canary government and regional analysts' figures as reported by the press. The EU legal framework follows the Treaty on the Functioning of the EU. Information on Spanish visas follows the current rules. The draft text has not been officially published, and its terms may change. This article does not replace advice on your own transaction.