The court has taken the view that it is legally justified to resort to expropriation in light of the housing situation in the Balearics: "It seems difficult to deny that access to decent and affordable housing is one of the main problems faced by a large sector of the Balearic population. Data also show a trend for this situation to worsen, which is why the decision to implement reactive measures can be considered justified."
The rulings do not question the 2018 housing law that included the possibility of expropriation, stating: "The social function of home ownership is defined by its destination for residential use." "The law justifies the special responsibility that these subjects (large property owners) have in relation to the purpose of facilitating access to decent and adequate housing for all citizens, and particularly the most disadvantaged."
Drawing on judgements by the Supreme Court in Madrid, the high court establishes that expropriation is not the same as a sanction. "Expropriation does not have a punitive purpose." Rather, it is about achieving the fulfilment of a legal objective.
In the case of housing, its social function is for people to live in it. "Principles of sanctioning law are not applicable to it. Housing is a basic asset for the development of the person and it is perfectly understandable that the reaction of public authorities must be immediate."
Between 2021 and 2023, 35 properties were expropriated. A further fifty expropriations were not completed. The process was hindered by failure to comply with registration requirements (for which there were sanctions) and also by the fact that the owners sought means to avoid expropriation - selling properties, for instance. It might be noted that this was not expropriation for all time but for a seven-year period and that the owners received the rent and not the government, though it was the latter which set the prices.
The law is still in force, but the current government has not continued with expropriations. However, new housing legislation it is preparing does contemplate maintaining this provision.
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Interesting the Spanish banks own the properties but do not want it to be used to their own. Much better pick on foreigners owning properties, that they are unwilling to let theirs.
I am pretty sure this has been tried before and failed.