EU threatens Spain over 'land grab law' again

October 16, 2006

The European Union has given [b]Spain[/b] a second ultimatum over the controversial '[b]land grab[/b]' law. Brussels gave Madrid two months to take action to remedy the law, which was introduced in Valencia, or face court action before the European Court of Justice. It is the second warning in less than a year over the law which has forced hundreds of expats with properties in Valencia to sell up or pay huge bills for services they say they do not need. It says the Ley Urbanistica de Valenciana (LUV) is still against EU practices. The law, which was introduced in 1994, allows developers to compulsorily purchase homes and re-designate for rural land for urban development. Originally, it was designed to stop speculation by developers who would hold on to rural land until the price went up. But, according the European Parliament, it has been manipulated by ruthless developers who simply ask local authorities to reclassify rural land as 'urban'. The developers then force homeowners to pay for amenities like roads, lighting, sewage or water supplies. Some of these homeowners, because they retired to Spain, cannot meet bills of tens of thousands of pounds, and are forced to sell up. Some expats who have been affected by the law are taking separate cases to the European Court of Human Rights, claiming their right to property have been broken. For an extensive choice of urbanised and safe property for sale in Spain on the Costa Blanca and Costa Calida, visit the Novocasa website.