Spanish coastal law opens up investment opportunities

The changes to the Ley de Costas will allow refurbishments to homes near the sea for the first time since 1988, when the bill was introduced.

“This troublesome piece of legislation expropriated private property without compensation, whilst spectacularly failing to achieve its stated objective of protecting the Coast for the public good,” explains Mark Stucklin of Spanish Property Insight.

“Owners of expropriated homes that were legally built before the Ley de Costas were given a 30-year concession of use (a type of lease), many of which were due to expire in 2018.”

The Popular Party Government extended the leases to 75 years and have now made it legal to buy and sell concessions - previously, they could only be inherited. As a result, concessions are now more valuable, having a knock-on effect for Spanish property prices.

Indeed, the changes have sparked a “frenzy of transactions”, according to Spanish Property Insight, with buyers and owners attracted by the chance to the upgrade their homes in prime seafront positions. Some regions, though, including Andalucia, Asturias, the Canary Islands, Catalonia and the Basque Country, are planning to challenge the rules because it infringes upon their town planning powers.