Property in Spain: What about the military clearance?

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.

Why does it matter?

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As a result of Brexit, the United Kingdom has withdrawn from all international conventions that supported such equality, and British nationals, like Canadians, Australians, Russians, and Moroccans, will require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.

Does it affect to all the properties?

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.

Where do i get it and how do i get it?

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:

• The military permission is a legal control over foreigners’ holdings in certain crucial regions. Apart from certain regions on the peninsula, all the territories in the Balearic and Canary Islands need this military clearance.
• It is a legal requirement, so the purchase cannot be validly completed without it.
• It affects foreigners who are not citizens of the EU or the Schengen zone. British citizens will also require this authorization because of Brexit.
• If one of the wants to buy land in a rural region, it must first obtain military permission. The military authorization has no impact on the acquisition of property in urban land.
• The proportion of ground owned by foreigners in any community in the Balearic or Canary Islands cannot exceed 15% of the city or county total area. Therefore, in places where there has been a significant British activity in the EU years of the UK, it is possible that this proportion is already exceeded and, therefore, the clearance cannot be issued.
• It does affect to other real estate operations, such as mortgage constitution, building Works or even inheritance, where the heirs have a term of 3 months to apply for it or must sell the Property within a year.