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Spanish Land Grab Law Explained
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There has been much bad press regarding the Spanish and Valencian Land Grab laws recently, and this has for obvious reasons concerned many of those considering purchasing a property in Spain.
This article aims to explain the basics of the Land Grab Law, which came into force in Valencia in 1994, and will hopefully help dispel any misconceptions regarding its consequences for property owners. Please note independent legal advice continues to be the best way of protecting yourself when buying a property in Spain, regardless of location.
Principally, the Spanish Land Grab Law may be applied to three classifications of land; land already urbanised, land suitable for urbanisation and rural land.
From time to time, local authorities may reclassify land as suitable for urbanisation (development). The main purpose of the introduction of the land grab law was to prevent individual owners of rural property in areas that have been re-classified from obstructing developments that would benefit the community as a whole; for example by creating affordable housing or improving services.
Given that the significant increase of the value of a rural property after reclassification, the Land Grab Law obliges the landowner to contribute cash and/or part of the land towards bringing in facilities such as mains water, sewerage systems and roads etc., even though the owner may not want such facilities.
In one area of Spain, the Land Grab Law was particularly poorly drafted, and this allowed authorities and developers to exploit the situation particularly on coastal areas where land is more sparse and therefore expensive.
As is required under UK law, a notice of intent must be published by the authorities, however only 15 working days are necessary under the laws, during which owner(s) may file objections to the proposals. Hence foreign property owners, who may not be present in Spain at all times during the year, have been unfortunate in the use of the land grab law and this has caused a breakdown in the process
LRAU Valencia
LRAU Valencia has its own specific version of the Land Grab Law, called LRAU Valencia. LRAU Valencia only applies to the areas of Alicante, Valencia and Castellon, with the other areas of Spain having their own versions of Land Grab Law. In Valencia, owners with property in areas already designated urbanised is not affected. This includes the great majority of apartments, villas and linked properties. Most streets of detached villas are in such zones. As with all purchasing matters, however, independent legal advice should be sought before considering purchasing a property in Valencia, or other areas of Spain. Despite what some media coverage has said regarding the matter, the laws are not an anti-British sentiment, but rather a matter that affects both Spanish nationals and is something that all property owners in Spain must be aware of.
Note: This article does not represent legal advice and before making any purchase decisions you should seek the independent advice of a legal professional. |
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