In principle, nationals of countries that are not part of the European Union or part of the European Economic Area require a military permit when purchasing real estate in a rural area (rústico) of the Spanish island territories. This also applies to citizens of the United Kingdom since the exit from the EU on January 1, 2021. Spanish companies whose capital is more than 50% owned by a foreign natural or legal person of a third country also require a permit.
Members of the Schengen area who are not members of the European Union, i.e. Iceland, Switzerland and Norway, are treated the same as citizens of the European Union and are excluded from the scheme.
Approval is required for the acquisition of a Plot, regardless of whether it is built on, as well as construction work or the erection of buildings. Mortgages, easements and other rights in rem are also covered. The property located on the building must have documentation such as the energy performance certificate, the building valuation report and an urban planning certificate. It must be free of encumbrances. Likewise, this property must not have any pre-emptive rights or rights of entry in favor of an authority, the municipality, neighbors, etc.
Certain requirements apply to individuals in order to obtain a permit. An application must be submitted to the Minister of Defense. This must include information such as nationality, length of stay in Spain, personal circumstances and any other justification deemed appropriate. A copy of the passport/residence permit is also required, as well as information about the Plot together with a sketch, a certificate of the buyer's personal background and, if applicable, a power of attorney.
In the case of a legal entity, the same requirements apply initially as for an individual. In addition, a notarized copy of the certificate of incorporation and a certificate of the company's administration/agency are required.
All documents must be submitted in Spanish. Photocopies must be certified.
The deadline for registration in the land registry is 18 months. If this is not met, the authorized notary must indicate the appropriate filing. If the registration has not taken place by the time the transfer tax is paid, through no fault of the buyer, the period is extended to 24 months.
Author:
Dr. Dominic John Patrick Porta, LL.M.
Attorney at Law (Düsseldorf Bar Association n° 52954)
Abogado (ICAIB n° 6645)
dominic.porta@anwaltmallorca.eu
www.anwaltmallorca.eu
Do you need the assistance of a German lawyer for your vacation rental in Mallorca?
Porta & Associates is a law firm in Palma de Mallorca specializing, among other things, in real estate law in Spain.
Dr. Dominic Porta advises you as a German lawyer in Mallorca on all matters relating to house purchase, renting and licenses. The modern law firm in Palma also represents its clients in corporate law, inheritance law, contract law and tax law.
More information and contact can be found at www.anwaltmallorca.eu
