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PROPERTY

Do Brits and other non-EU property hunters still need a military permit to buy in Spain?

Foreign property buyers in Alicante province no longer need to get a Franco-era military authorisation to buy a home in locations that are of strategic interest for national defense, a law which shocked UK property seekers in the aftermath of Brexit. 

Do Brits and other non-EU property hunters still need a military permit to buy in Spain?
Torrevieja is among the Alicante municipalities where non-EU property buyers no longer require a military permit. Photo: Jose M Martin Jimenez/AFP

What’s the latest?

In early July, Spain’s Ministry of Defense published an order addressed to Spain’s General Directorate of Infrastructures allowing them to cancel the requirement of a military authorisation for non-EU property buyers in an area that’s particularly popular with foreign buyers: Alicante province.  

The decision benefits non-EU nationals such as Americans, Russians and, since 2021, Britons who want to buy a property in the Alicante municipalities of Torrevieja, Orihuela, Pilar de la Horadada or San Miguel de Salinas.

The decision comes after several bodies including the Alicante Chamber of Commerce and Alicante’s Association of Real Estate Developers (Provia) were able to convince Spain’s Ministry of Defense of the negative impact the military permit requirement was having on foreign property  purchases. 

A total of 363,393 foreign nationals are residents in the eastern province that’s part of Spain’s Valencia region, and thousands more own property in Alicante even though they aren’t residents there.

Spain’s Ministry of Defense has indicated that in Alicante municipalities in question in which the land has been approved in a partial plan or is classified as urban land (terreno urbano), it will no longer be necessary to apply for a military permit. 

Non-EU buyers of non-urban land (suelo no urbanizable or terreno rústico) are the only ones who will still need to request a military permit. 

As things stand, there is no indication that non-EU buyers in other locations in Spain which require a military permit can benefit from the lifting of this rule, but the decision regarding Alicante may lead to changes elsewhere. 

military permit property spainPhoto: Luis Vizcaino/AFP

What is Spain’s military permit for properties law all about?

For the past 40 years, Spain has had legislation in place that requires non-EU buyers to seek a special permit from the Ministry of Defence in order to buy property within areas considered strategic defence points.

The law was actually drafted in the last year of the Franco regime as a means to protect national security by preventing strategic places being bought up by foreigners. 

The law came into effect under Royal Decree 689 published in 1978 and exists to this day.

It’s an administrative process that requires certain paperwork including a criminal record check to take place before a purchase can be made, a process which is supposed to take two to four months to be completed but often takes double that time.

The rule applied to all foreign buyers until Spain joined the EU in 1986, when an exemption was put in place for citizens from the bloc. 

Citizens from Iceland, Switzerland and Norway are exempt under a mutual agreement between their governments and Spain.

Which areas in Spain need military permission?

It isn’t just zones around the edge of military installations that fall under the requirement for special permission.

In total, the law impacts about 1,560 municipalities across Spain as it also applies to urban areas close to the Strait of Gibraltar, the Bay of Cádiz, the Galician coast and Spain’s borders with France and Portugal as well as all the Balearic Islands and the Canary Islands. 

It also affects much of the region of Murcia and the Alicante province, especially towns along the southern Costa Blanca because of their proximity to the Cartagena naval base.

map military permits property spainMap produced by Tradusan.com

What is the process for getting a military permit?

Besides all the usual administrative formalities required when buying in Spain, foreign buyers of property within designated sensitive zones will have to apply for a permit from the Ministry of Defence.

To do this they will need to provide a Criminal Record Certificate from their country of residence, accompanied by a sworn translation and stamped by a notary as well as detailed plans of the property itself.

As mentioned earlier, the application is meant to take an average of two to four months and up to six months but could be delayed further if there is a backlog due to a sudden surge in applications.

In recent years an average of 150 applications are received annually but this could soar with Brits now needing to apply too.

This means the buying process could be drawn out by months as without relevant permission, notaries will not be able to transfer title deeds.

Applications will need to be made with the help of a property registrar or notary. 

What about Brits who bought a house before December 31st 2020?

There is no retroactive application of the law which means if a property was registered in the name of a British buyer before the end of the Withdrawal Agreement then no special permission is needed.

For UK nationals who aren’t beneficiaries of the Withdrawal Agreement who buy a property in 2021 and onwards, the military permit could apply depending on where they intend to buy, now with the exception of Torrevieja, Orihuela, Pilar de la Horadada and San Miguel de Salinas in Alicante province.

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For members

LIFE IN SPAIN

EXPLAINED: How to buy a boat in Spain

Considering buying a boat to enjoy life to the fullest in Spain? Here's a breakdown of costs, legal requirements, financing options and useful tips to factor in before purchasing a bowrider, a day sailer, a yacht or any other 'barco'.

EXPLAINED: How to buy a boat in Spain

Spain has around 8,000km of coastline, and access to the Mediterranean, Atlantic, and Bay of Biscay. For boat enthusiasts, you’re spoilt for choice in Spain.

But it’s not just as simple as picking out a boat, buying it and setting off into the ocean.

There are several decisions you’ll need to make first, rules to follow, administrative hoops to jump through, and then maintenance costs on top of that.

Types of boats

The first thing you’ll need to consider is the type of boat you want to buy.

Generally they can be split into two broad categories: motor boats and sailing boats.

Motor boats are the most popular type of boat sold and offer the greatest variety of options because they include pretty much everything from smaller more affordable power boats to huge luxury yachts.

As such, you could get a smaller motor boat, say for day trips of fishing on the coast, for as little as €10,000, whereas yachts, as you can imagine, can cost millions, depending on the size, power, design and quality of the boat.

According to several Spanish maritime sources, buying a used boat that you can live on in Spain can cost anywhere between €13,000 and €150,000.

Spanish website topbarcos.com has hundreds of boats listed for you to get an idea of what’s available in the second-hand market, as well as a page for new vessels.

Sailing boats are the more environmentally friendly option and require the most skill to sail, and include light sailboats, catamarans and trimarans. Again, prices vary from €5,000 to over a million, depending on the size, type of sail, material and quality of the boat.

Once you’ve decided on the type of boat you want and found one you’d like to buy, you’ll need to consider any potential legal requirements.

A woman sits next to a yacht in Puerto Banús luxury marina in Marbella. (Photo by JORGE GUERRERO / AFP)

What are the legal requirements when buying a boat in Spain?

  • The correct nautical qualifications for the type and size of the boat you want to buy. There are different types of nautical licences to sail different boats in Spain, such as the PNB (Basic Navigation Skipper), the PER (Recreational Boats Skipper), the PY (Yacht Skipper) or the CY (Yacht Captain). Each has specific limitations in terms of length, power, distance from the coast and the type of sailing you can do.
  • Compulsory civil liability insurance that covers possible damages that you may cause to third parties with your boat.
  • Have all the necessary documentation for the boat, such as the certificate of seaworthiness and (essentially an MOT for the boat, showing that it’s in working order) and the navigation permit.
  • You’ll also need to pay the corresponding taxes on the boat purchase, such as VAT (21 percent), the special tax on certain means of transport (12 percent) or the transfer tax (4 or 6 percent, depending on the region).

READ ALSO: How do I get my boat licence in Spain

What other factors should you keep in mind before buying?

Think about what type of navigation you want to do, how often, with how many people and what your budget is. 

Don’t go with the first boat you see. Search and compare different models, brands, prices, conditions etc and don’t forget to keep an eye out for scams.

It’s a no-brainer but try the boat before you buy it, don’t just rely on photos or descriptions. Request a test ride to check the condition and navigational operation of the boat. 

If you do not have much experience or knowledge of nautical matters, it’s advisable to hire a professional to accompany you throughout the purchasing process. It could help you avoid possible legal, technical or administrative problems that arise.

They will also assist you with checking the condition of the boat’s interior: the carpentry, the engine, the electrical installation, the tanks, bilge, kitchen, bathroom and other compartments.

Here is a list of dozens of Spain-based brokers (as they’re called) or nautical companies that can assist you. 

Crucially, they will also be able to give you an informed assessment of what price you should be paying for the boat you’ve chosen. 

How can you pay for a boat?

Unless you have enough disposable income to pay for it cash, you probably want to know what kind of financing is available to you. 

There is the nautical mortgage (hipoteca náutica), which mimics the system for property mortgages, including the need for a down payment and embargo conditions in non-payment situations. 

Nautical credits (Créditos náuticos) also exist, which again are not too different from regular loans, including fewer notary costs than nautical mortgages and fixed interest rates. 

And lastly, nautical leasing is also an option, which is when a company acquires a boat and rents it to a customer for a certain period of time (normally between 4 and 15 years) and usually with an option to buy at the end of the contract.

Don’t forget the upcoming maintenance costs

If you manage all that and buy the boat, you’ll need to maintain the boat and pay costs to do so. These include:

The mooring: ie. the place where the boat is left when it is not in use. The price of mooring depends on the size of the boat and the location of the port. It can range from around €100 per month to several thousand.

However, be warned, in Spain these aren’t easy to come by. The Association of Industries, Commerce and Nautical Services (ADIN), estimates that Spain has only 107,894 moorings for 229,000 boats.

You’ll also need to pay for periodical technical checks that must be carried out on the boat from time to time to check its condition and operation. Again, the price depends on the type and size of the boat and the services contracted. It can vary from around €200 euros to several thousand.

Regularly cleaning the boat to avoid dirt, rust, algae, and parasites damaging the boat can also be quite costly. It can vary from as little as €50 for smaller boats to several hundred for bigger ones, and most experts recommend it should be done every 4-6 weeks.

READ ALSO: How to live on a boat in Spanish waters

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