However, in contradiction to this, and with a hint of corporate favouritism: there is little to no restriction on corporate property acquisition, even in stressed areas experiencing a severe housing crisis. According to data from the Spanish Land Registry, corporate activity is highest in regions where the pressure on local housing markets is already intense. The Canary Islands lead with 16% of purchases by companies, followed by Catalonia (15%) and the Balearic Islands (14%).
Many of these property purchases are by real estate investment trusts (REITs), tourism operators, and private equity firms. Others are made by wealthy individuals using corporate structures to benefit from tax breaks. In regions like Madrid, companies enjoy reduced property transfer tax rates as low as 2.5%. It’s no secret then that investors target capital cities, second-line suburbs, and tourist zones for rental income and capital appreciation.
As we have seen, the effects on local communities are significant. Corporate ownership reduces housing stock for residents, pushes property prices higher, and fuels gentrification. Corporate buying by large corporations can sometimes place stress on entire neighbourhoods. As part of their strategy, they will target large quantities of real estate in specific areas, to drive up prices. Long-term rentals become scarce as properties are flipped or repositioned for short-term profits. Young people, key workers, and even middle-income earners are often priced out of their own neighbourhoods.
Despite Spain’s claim to prioritize affordability, their approach remains questionable. While holiday rental regulation becomes tighter, there is no equivalent framework to address the bulk acquisition of homes by companies. Moreover, foreign investors, and many from outside the EU, continue to buy up properties with few restrictions.
Meanwhile, over 80% of real estate investors surveyed by Savills in 2025 identified Spain as the top investment destination in Europe. With its enviable climate, thriving tourism, and solid infrastructure, the Mediterranean coast continues to attract intense interest from both domestic and international corporate buyers.
But this ongoing boom highlights a deeper conflict at the heart of Spain’s real estate strategy. Spain’s housing market is now caught between three competing forces, a) the dream of a better life for foreign investors, b) the basic right to affordable housing for residents, and c) the government’s pursuit of economic growth through corporate capital.
So far, the government seems to favour the investor.
Unless national policy evolves to address corporate bulk-real estate purchases with the same urgency as it has tackled mom-and-pop holiday rentals, the housing crisis in Spain will deepen. Regulations that selectively target individual homeowners, but favour large-scale corporations are not only inconsistent, but if left unchecked, could widen social inequalities and create further problems for entire communities.
