A foreigner’s acquisition of a property in Spain is not subject to any different legal restrictions than a national’s purchase in general terms. However, the Law 8/1975 on territories and installations of national defence importance, as well as Royal Decree 689/1978, which implements it, place restrictions on foreigners buying real estate in specific locations regarded to be of national defence interest. This rule specifies that, in addition to specific portions of the Spanish mainland, all islands and islets are of national interest, which has a significant impact on potential purchasers in both the Balearic and Canary Islands.
In certain regions, the law limits to the 15% of each municipality the amount of land that can be owned by non-nationals or assimilated.
Prior to Spain’s membership to the EU and the Schengen region, the original law required military authorization for any foreigner wanting to buy property in areas appointed as being of national defence importance. Despite this, since 1991 residents of EU nations or members of the Schengen region do not require such authorization because they are regarded comparable to nationals.
As a result of Brexit, the United Kingdom has withdrawn from all international conventions that supported such equality, and British nationals, like Canadians, Australians, Russians, and Moroccans, will require military permission from January 1, 2021.
But the military authorization does not limit to non-nationals acquisitions, but also to constructions mortgages, inheritance, even when the subject is a Spanish company held in more than a 50% by a non-national.
As we have pointed out above, it affects certain areas of Spain, but in the Balearic and Canary Islands it affects the whole of the territory, which is why it is of the utmost importance.
The law excluded from the need of the authorization the urban zones in 1976, as well as all the new urban zones where the new urban planning had been previously approved by the Ministry of Defence. This created a huge uncertainty, due to the difficulty to control these approvals by the Ministry of Defence.
Fortunately, since July 22, and as per an order from the Ministry of Defence, all municipal planning is considered lawfully informed. Consequently, the permit is to be only needed with reference to rural plots.
The process is lengthy, taking anything from 6 to 8 months, making deals problematic, especially when the owner wants a quick completion.
To process the application, the buyer’s identification data, including a criminal record certificate, as well as that of the property, are needed, so that it is not possible to process a generic application, but it must be linked to a specific property.
At desalvador. they will be able to help you process the application, as well as recommend you throughout the complete process of buying the property.
Remember:
At desalvador., we put all our experience and knowledge on real estate law at your service to help you with both real estate operations and the legal management of your properties.
We believe in a unique way of practicing law in which you are the most important asset. Our methodology, SMART REAL ESTATE LAW means knowledge, honesty and transparency: a practical vision geared towards fulfilling your goals, with high levels of agility and professionalism.
Our main goal is to give you security and peace of mind.
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