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Buy a home if you are not from the European Union

Posted by Michel B. on 27/01/2021

Military authorization or certificate from the City Council

Buy a home if you are not from the European Union

Military authorization or to buy in Ibiza certificate from the City Council

Brexit is beginning to have consequences for the three thousand British residents in the Pitiusas and for those who want to settle here: if they want to buy a home on rustic land they will have to request a permit from the Ministry of Defense.

It is one of the derivatives of leaving the European Union: the citizens of the United Kingdom cease to belong to the EU and, therefore, the pure and simple legislation is applied to them. And not just anyone: in this case it is Royal Decree 689/1978, of February 10, which approved the Regulation of areas and facilities of interest to National Defense, which developed Law 8/1975, of February 12. March, of areas and facilities of interest to the National Defense. It dates back almost half a century and bears the signature of a certain Francisco Franco.

Real estate agencies and notaries in the Pitiusas have already begun to deal with this bureaucratic obstacle when a Briton wants to acquire a property. If before Brexit you were treated like a Spaniard and you were spared from requesting that permit, now you have to go through that procedure, which depending on the “traffic jam” in Defense can delay the signature from three to six months.

If before a quick sale took place in a month, now it can last almost half a year in the worst case, depending on the traffic jam at the Ministry of Defense.
This regulation is only for rustic land (both land and homes), not for urban land, so that so far, and three weeks after Brexit, “it has only affected specific cases” in the Pitiusas.

Urban before 1978

A permit for urban land is not required if it was already so before the 1978 regulation came into force or if, afterwards, it had the approval of Defense. And to prove it, a certificate from the corresponding City Council is required, which can take months, up to half a year.
The paperwork is such that there is a Mallorcan lawyer specialized in substantially shortening the waiting time for this authorization and that it is offered to real estate agencies in Pitius.
But reducing the processing to a month instead of four or half a year does not come cheap: their services cost 4,000 euros, “Flat rate”.

Royal Decree 689/1978, of February 10, indicates in Chapter 3 that “island territories” such as the Pitiusas and islets are “areas of restricted access to property by foreigners.” In the case of southern Pitiusa, there is an added condition: the maximum percentage of properties and other real estate rights in favor of foreigners will be «on islands with an area equal to or greater than Formentera (82.8 square kilometers), 15% ».

The military authorization must be processed in these cases both for “the acquisition, whatever its title, by foreign natural or legal persons, of property”, and for “the constitution, transmission and modification of mortgages, censuses, easements and other real rights over farms, in favor of foreigners “, and for” the construction of works or buildings of any kind.

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