On Wednesday, the European Commission highlighted that any restrictions on non-residents purchasing homes within the European Union, such as those proposed by the Canary Islands Government, generally contradict EU rules safeguarding freedom of movement. However, the Commission acknowledged that “overriding reasons of general interest,” as defined by the Court of Justice of the EU (CJEU), could potentially justify such measures.
EU financial spokesperson Francesca Dalboni addressed this issue during a press conference in Brussels, responding to statements by Canary Islands President Fernando Clavijo. Clavijo had previously expressed that “it is time” to discuss with the EU the possibility of limiting foreign home purchases in the archipelago.
Dalboni emphasized that Article 63 of the Treaty on the Functioning of the EU (TFEU) “prohibits restrictions on the movement of capital related to the acquisition of real estate, including housing, by non-resident EU nationals.”
Nevertheless, she pointed out that such restrictions might be allowable under Article 65 of the same Treaty if they are based on “public policy or public security” or other “overriding reasons of public interest” recognized in CJEU jurisprudence.
Dalboni clarified that any such restrictive measures must be non-discriminatory and proportionate to their intended objective. This means they must effectively and systematically contribute to the goal and not exceed what is necessary to achieve it.
