Around a third of all house purchases are by foreigners. | MDB

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Balearic property sector representatives believe that Prime Minister Sánchez's announcement on Monday of a tax measure designed to limit (or prevent) the buying of homes by non-resident citizens from countries outside the EU will have a very limited impact.

Hans Lenz, president of the ABINI association, and José Miguel Artieda of the API association point out that these buyers represent only a very small segment of buyers. Lenz notes the particularly low percentage of American purchases, although the British market is a rather different matter.

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This has typically been the second largest market behind German buyers. However, more than half the British purchases in the Balearics, according to notaries' figures, are by people who have residency. They would therefore be unaffected by the measure that will place a 100% tax burden on the purchase of homes.

A general response to the Sánchez announcement is that it will not make a great deal of difference to the current level of foreign buying in the Balearics, which is around a third of all purchases. There will always be other nationals - EU nationals, such as the Swedes - who will fill the gap.