Military zones: when non-EU buyers need an authorisation

The legal basis

The rule comes from Ley 8/1975 on zones and installations of interest for national defence, and its regulation, Real Decreto 689/1978. Article 1 of the law creates three kinds of zone, which can overlap: zones of interest for national defence, security zones around military installations, and zones of restricted access to property by foreigners. Only the third concerns a buyer. The regulation dates from 1978; its text is amended only in a few places, and the Ministry’s current administrative practice was not read for this guide.

What needs an authorisation

Article 18 of the law (article 37 of the regulation) makes three kinds of act subject to military authorisation in restricted zones when carried out by foreign individuals or companies:

• acquiring ownership of rural or urban land, with or without buildings, or of works or constructions of any kind, “whatever the title” (so purchase, but also inheritance or gift);
• creating, transferring or modifying mortgages, easements and other real rights in favour of foreigners;
• building, and acquiring rights under licences granted but not yet used.

Companies are caught too: Spanish companies whose capital belongs to non-EU foreigners above 50%, or which they dominate in practice, need the authorisation (article 19 of the law).

Where: the zones

Article 32 of the regulation lists the restricted zones, with a ceiling on the share of land that foreigners may own:

The detailed boundaries are in Annex II of the regulation, which describes them by coast and by lines drawn through named towns, roads, railways and rivers. For example, the Galicia zone covers all Galician coasts and is limited inland by a line running along named rail and road routes. These descriptions are not easy to apply to a plot of land, which is why the notary asks the town hall for an urban planning certificate that records any limitation imposed by the Ministry of Defence (article 40.2 of the regulation). The UK government’s guidance for British buyers lists the same areas: Cartagena (Murcia, southern Alicante and eastern Almería), the Strait of Gibraltar, the Bay of Cádiz, Galicia’s coast, the borders with France, Andorra and Portugal, all the islands, Ceuta and Melilla.

The Government can create, abolish or change zones by decree (article 32.2). Within the ceilings, the Minister, or the army authority to whom the power is delegated, assesses each case freely, in line with the purpose of the restrictions (article 47).

What is exempt

• Existing urban centres. The restricted-zone rules do not apply to the area occupied by “the current urban cores of non-border towns or their current urbanised or expansion zones” (article 16 of the law; article 35 of the regulation). Future urban areas qualify if they are in approved plans that the Ministry of Defence has reported on favourably. A town counts as a border town if its municipality adjoins a frontier. If the Ministry’s report was unfavourable, purchases there by foreigners remain subject to the rules.
• Centres and zones of national tourist interest. There the authorisation is deemed granted, subject to limitations the Ministry may have set (article 18 of the law; article 38 of the regulation).
• EU nationals. An additional provision added in 1990 says the limits “do not apply to natural persons holding the nationality of a Member State” of what the text calls the European Economic Community, now the EU. The exemption follows nationality, not residence. For British buyers since Brexit, see UK buyers in Spain after Brexit; Canadians and Americans have no exemption.

The steps, as the regulation sets them out

1. Check the zone first. Before signing, ask a lawyer, the notary or the town hall whether the plot lies in a restricted zone and outside the exempt urban area. Notaries and registrars must require the authorisation “before the granting or registration” of the instruments (article 40.1).
2. Application. Article 79 says an individual applies by a written request addressed to the Minister of Defence stating nationality, personal circumstances and the time and place of stay in Spain. The applicant attaches a photocopy of the passport and of the residence card if any, a certificate of conduct and record issued by the authority of the habitual place of residence, and a location sketch and plan of the property (scale between 1/5,000 and 1/25,000 for the sketch, not less than 1/500 for the plan). Documents in a foreign language need a Spanish translation, and the documents and photocopies must be legalised.
3. Processing. The file goes through the Captaincy General, which has up to two months to send it with a report; the Minister then decides within another two months (article 81). The Minister may delegate decisions on acquisitions up to 2,000 m² to captains general (article 82). Article 47 leaves the decision to the authority’s free assessment of the circumstances.
4. Deed and registration. Acts for foreigners in restricted zones must be entered in the Property Registry. As the text still reads, article 41 makes the act null if it is not registered within 18 months (24 where the delay is not the buyer’s fault), and notaries must warn of this in the deed.

Works or operations must be carried out within the period the authorisation sets, or it lapses (article 86). Where a foreigner acquires by inheritance, the regulation gives three months to apply or one year to sell, after which the State may expropriate (article 46).

Which professional to consult

A lawyer registered with a Spanish bar association (colegio de abogados) can establish whether the property is in a restricted area and file the request; the notary will not sign without the authorisation where it is required. See property lawyers. Payotte does not recommend firms.