Wednesday 22 July 2009

SPANISH PROPERTY CLASSIFICATION - RURAL - A TERM OF VITAL IMPORTANCE


Rural land (also known as rĂºstico or no urbanizable) encompasses most of the land in Spain and is essentially agricultural land. However, in property terms, it means that it is land in Spain that is severely restricted for building puposes. Unfortunately, this has been abused by the Spanish who have built many properties illegally on land classified as rural.

Existing Spanish properties located on rural land need to be treated with exceptional care. They may be legal, partly legal or completely illegal. Equally, at any time, they may be subject to a change of designation from rural to urbanizado.

Even if a Spanish property is legal and on rural land it can, by definition, potentially have serious future liabilities should the land be reclassified. This can happen anywhere but is most likely to occur in areas of high development potential such as those close to the coast or, perhaps, near to a booming town or village.

If an area of land in Spain is redesignated from rural to urbanizado then all the liabilities and benefits inherent in the redesignation of the land occur. This redesignation of land in Spain can be fantastically advantageous, make little real difference or be disastrous – depending upon the extent of your land, your finances, the cost and extent of the work and the actual execution of the infrastructure project.

Subject to obtaining the correct planning permission and abiding by strict regulations (such as the size of the property allowed) you can build a new property in Spain on rural land. However, this normally requires you to have a significant plot of agricultural land - although the regulations on this depend very greatly upon the given Spanish region (Comunidad). Equally, the law changes frequently which means that you must always check extremely carefully with a Spanish lawyer the precise regulations in force (in your particular region) before buying anything.

Currently, as an example (with various exceptions), you would need some 10,000 m2 of rural land in the Comunidad de Valencian before you could build a new property legally.1

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