Brexit is already making its mark and has left a series of inconveniences for British people who want to buy homes in Spain. As explained in this recent article, there are certain areas in Spain where a permit from the Ministry of Defence is required in order to purchase a property or land. These areas are known as military protection zones, and from now on, Britons who want to buy a property in a location affected by this classification will have to go through a series of procedures that will lengthen the whole process. Anna Gracia, director of the real estate law department at AvaLanding, has drawn up a practical guide to the steps to follow when buying property in these locations if you are British.
Those affected by these regulations are from countries that are not members of the European Union and the European Economic Area, as well as Spanish companies whose capital is owned by non-EU foreign individuals or legal entities in a proportion of more than 50%. In other words, this includes the British after the approval of their exit from the European Union.
Which operations are subject to authorisation?
- The acquisition, regardless of the title, by foreign individuals or legal entities, of ownership of rural or urban property, with or without buildings, or of works or constructions of any kind.
- The constitution, transfer and modification of mortgages, censuses, easements and other real rights over property in favour of foreign people.
- The construction of works or buildings of any kind, as well as the acquisition of rights over authorisations granted and not executed, when the applicants are foreigners.
- Administrative concessions on urban or rural real estate in favour of the aforementioned non-EU foreigners.
Affected areas
- Island territories: such as the Balearic Islands, including all islands and islets under national sovereignty. The maximum percentage of properties and real property rights in favour of foreigners in these territories is as follows.
- On islands with a surface area equal to or greater than Formentera (82.8km2) 15%.
- On islands or islets with a smaller surface area 0%.
- Peninsular territories
- Spanish territories in North Africa
Requirements to apply for authorisation
- Individuals: Application addressed to the Minister of Defence, stating their nationality, personal circumstances, time and place of stay in Spain and any information they deem appropriate to justify their request. The applicant must enclose with the application:
- Photocopy of passport and residence card.
- Certificate accrediting their conduct and background, issued by the competent authority in the place of their habitual residence.
- Location of the property or land.
- Plan of the location of the land, property or house.
- If the application or request is signed by an authorised person, a power of attorney must be provided.
- Legal entities (in addition to the above requirements)
- Notarised copy of the title or deed of incorporation.
- Certification issued by the person to whom the administration or representation of the entity corresponds.
If any of the documents are in a foreign language, they must be accompanied by a translation into Spanish, and all of them, as well as the photocopies of the passport and residence card, must be duly legalised.
Who is required to request authorisation?
Notaries and Land Registrars require the interested parties to provide proof of the appropriate military authorisation, prior to the granting or registration, respectively, of public instruments relating to acts or contracts for the transfer of ownership or the constitution of rights subject to military authorisation.
Registration in the Land Register will be required
The deadline for registration is 18 months following their respective dates; failure to register will result in the full nullity of the aforementioned acts and concessions, of which the authorising Notaries must expressly state this in the corresponding deeds.
When the aforementioned deeds are pending payment of Transfer Tax or any other formality that prevents registration, through no fault of the acquirer of the aforementioned deeds, the aforementioned period is extended to twenty-four months.
Time limits for the granting or refusal of authorisation
The deadlines for resolution are usually; up to 2,000 m2, the application is sent to Barcelona and takes 2 months or up to 4,000 m2, the application is sent to Madrid and takes 4 months. Authorisations will be considered to have expired once the period indicated in the application has elapsed, except in cases in which the granting authority considers that there are causes that justify the delay in the authorisation.