Inside Spain: Will a right-wing government go easy on foreign homebuyers?

"The People's Party appears to stick to its guns when it comes to being pro-business and against any restriction on the free movement of capital from overseas. They also have little faith that any restrictive measure by the Sanchez government will come to fruition. President of the Balearic Islands government and PP member Marga Prohens stated recently in Ibiza that it is "impossible" for the European Union to allow bans on purchases of housing by foreigners, at least EU citizens."

"In the Balearics, PP and Vox representatives voted down a proposal to limit property purchases by non-residents, the same as they did last year. In the Madrid dormitory city of Getafe, Vox proposed tax breaks for Spaniards in response to what they called the "massive" purchase of homes by foreign capital in and around the Spanish capital."

"However, the PP regional government of Madrid, headed by Isabel Diaz Ayuso, has reportedly shunned the idea of a differentiated property tax system for foreigners and Spanish nationals. This is somewhat ironic as in 2024 Ayuso introduced the Mbappe Law, which rewards high-earning foreigners who settle and invest in the region by giving them tax breaks."

Spain's conservative People's Party (PP) consistently blocks proposals to restrict foreign property purchases and implement higher taxes on non-resident buyers. In the Balearics and Madrid, PP representatives voted down or rejected measures aimed at limiting foreign real estate investment. While the far-right Vox party proposes differentiated tax systems favoring Spanish citizens and subsidized housing construction, Madrid's PP government under Isabel Díaz Ayuso opposes such restrictions. This stance aligns with the party's pro-business ideology and the 2024 Mbappe Law offering tax breaks to high-earning foreign investors. PP leadership argues that EU regulations prevent housing purchase bans for EU citizens, maintaining their position against restrictive measures on foreign capital movement.

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