Spain: Spanish Regional Laws

Valencian Urbanisation Regulations

The Urban Development Legislation (Ley Reguladora de Actividad Urbanística/LRAU), introduced in 1994, in the region of Valencia is currently the centre of a highly-publicised dispute between developers and hundreds of property owners, who are being forced to pay huge sums of money for infrastructure development or for the repurchase of their own land. If the owners don’t (or cannot) pay, developers can legally seize the land and pay owners compensation at a fraction of the market price.

When it was introduced in 1994, the LRAU’s objective was to promote urban development in the region where town planning faced continual obstacles mainly from landowners who refused to participate in development projects. As a result, towns and cities could not expand or build low-cost housing or essential public services. Under the LRAU, landowners must participate in development projects backed by town councils by paying for contributions towards infrastructure such as roads, mains supplies and street lighting. In the city of Valencia, the LRAU has worked well and the city and suburbs have benefited hugely from new development for housing (relieving the chronic shortage), green areas and public services such as hospitals and schools. Control in and around the city has been strict and development highly regulated. However, in other parts of the region, particularly the Costa Blanca, the LRAU has been systematically abused by corrupt local authorities and developers who stand to make huge profits by developing rural land for villas. Most of the development plans in this area carried out under the auspices of the LRAU provide little or no public benefit.

Many owners, Spanish and foreign, of semi-rural or rural properties in the area are affected by the LRAU, particularly as developers now move further inland away from the coast where there’s a shortage of building land. As a result, many owners are facing large bills (up to €75,000) or are being forced to sell their property. The LRAU has been challenged before the Spanish Constitutional Court as a breach of essential property rights, although a decision by the court isn’t expected in the near future. The matter has been taken up with the European Court of Justice and the EU has opened an infringement procedure against the Spanish government, but an end to the LRAU and compensation for victims has still yet to arrive. Meanwhile and until there’s a court ruling against the LRAU, you’re advised not to buy rural or semi-rural land in the region of Valencia without taking comprehensive professional advice, preferably from a lawyer who can thoroughly explain all the implications of such a purchase. The LRAU only affects property situated on land that hasn’t been developed. Comprehensive information about the LRAU and associated problems is available in English from the ‘Abusos Urbanísticos No’ pressure group website (www.abusos-no.org).

Rural Land in Andalusia

In December 2002, Andalusia’s regional authorities (the Junta de Andalucía) passed new legislation affecting building work in most of the region’s rural areas in an attempt to preserve Andalusia’s unique countryside and to prevent it being spoilt by uncontrolled construction such as that seen along much of the coastline. Under the new law it’s now extremely difficult to build on a rural plot (known as a parcela rústica or parcela no urbanizable) unless the land already has a ruin or building on it, or you intend to make your living from agriculture.

Rural Andalusia is very popular at the moment mainly because foreign buyers find the property prices too high on the coast or are looking for a quieter area. However, many foreigners buying plots inland have been caught out by this new legislation and there are numerous stories of foreigners who have found they can do nothing with the rural plot they bought – except enjoy the views. In some cases foreigners who bought the land several years ago have since discovered that their applications for a building licence will be refused. Some agents and owners will try to tell you that local authorities aren’t imposing the regulations, but it would seem they’re taking the legislation seriously – building projects on rural land are often stopped by local councils and police helicopters regularly scan rural areas looking for illegal construction. Illegal projects have to be abandoned and demolished (at huge costs to the owners), as it’s no longer possible to pay a fine and continue building.

There are exceptions to the ruling, although these are difficult to fulfil, as you can currently only build on a rural plot if you intend to live there and make your living from farming the land (you must prove this). Even if you buy a plot with an existing building or ruin, permission to extend the building or restore the ruin may not necessarily be given. It’s also virtually impossible to build a swimming pool or garage.

Steer clear of rural plots unless you have official confirmation in writing (preferably from the regional authorities themselves) that you can build on the land. Don’t be taken in by promises made by owners (anxious to sell their land to foreigners at a high profit) or estate agents (anxious to get their commission) that a building licence can be obtained. Check yourself, or better still, employ a lawyer in the area to check for you. If there’s any doubt about whether you can build then it’s advisable to look at other properties.

This law only affects rural plots and doesn’t affect land classed as ‘urbana’.

© Survival Books Limited 2005

“Buying a Home in Spain 2006” 5th Edition, David Hampshire.

Reproduced with the permission of Survival Books Limited.

Further information on this topic can be found in “Buying a Home in Spain 2006” 5th edition, by David Hampshire.

For extensive, annually updated information about buying a property in Spain, you can purchase this book at www.survivalbooks.net