Spanish land grab law
The issue of the Spanish land grab law revolves around three classifications of land – land already urbanised, land suitable for urbanisation and rural land. As in any developing country, Spanish rural land is sometimes re-classified by the local authorities as suitable for urbanisation (development).
What about Alicante and Valencia?
Unfortunately, in the Valencia area of Spain the land grab law was badly drafted. In Alicante it was allowing a small number of developers and local authorities to exploit the situation, principally in coastal areas where land is in shorter supply and values are at their highest. It led to land expropriation of innocent private owners and compulsory payments for roads, streetlights and so on.
How can I avoid land expropriation? What are the risks of buying a property in the Valencian Community?
The consequences of this notorious Spanish land grab law can be easily avoided. Restrict yourself to buying in an area that is already classified as urbana and that is already fully developed. Because the Spanish land grab law only take place in areas that are in the process of being changed from rústico into urbana.
If the property of your choice is built in an area that at the time of construction already was being classified as urbana, then you don´t have these risks.