October 22, 2005
The Land Grab Scandal
I want to dispel a few Myths!
Firstly The Land Grab Scandal In Valencia Province (under the LRAU Act or compulsory purchase law)
Spain is a huge mountainous country that is split into semi autonomous regions, Andalucia being one of them.
The corrupt pratices of unscrupulous developers misusing the Compulsory Purchase law for appropriating land (in a very draconian way) and forcing owners near the developments to contribute to the development of infrastructure has happened in the Valencia region of Spain ONLY! All regions of Spain have a version of the Compulsory Purchase law to help local governments improve infrastructure, etc (and may i add so does the UK and every other EU country). It is only in Valencia where the local loop holes in that law allowed certain companies and local officials to take advantage. Postings that claim you should not buy in Spain based on the land grab scandals in Valencia are a load of cobblers!
While Valencian LRAU is particularly draconian, other regions, including Andalusia, do have their own versions. The law was intended both to ensure that developments had proper infrastructure (drains, road access, etc) and to enable suitable "rustica" rural land to be reclassified and developed.
This misuse of the law looks set to sorted out by the recent findings of the EU commission. http://www.thinkspain.com/news-spain/2352 Another reason why being a member EU state is handy thing. There is always a higher authority to complain to.
This "bad" law has affected Spanish nationals as well as expats. So the reports that state that its Uk citizens who are being targeted and singled out is also misleading.
Spain is made up of semi autonomous regions that make their own by laws. Hence the regional differences in the applications of law and associated taxes. For example if you live and are resident in the Asturias your inheritors have different inheritance tax concessions on your Spainsh property than people who are resident and live on the Costa del Sol.
Category: The Costa del Sol Property Market.