Military Permit for Property Purchase on Rustic Land in the Balearic Islands for British Citizens
Since January 1st, 2021, following Brexit, British citizens are considered non-EU nationals. This means that if they wish to buy property on rural (rustic) land in the Balearic Islands, they must first obtain a military permit.
This regulation applies to all non-EU residents, as rural areas in Spain — especially in the Balearic Islands — are considered strategic zones for national security reasons.
At Frau Legal, we have over 20 years of experience in managing these procedures efficiently. Our legal team can handle every step of the process, ensuring a smooth purchase without unnecessary delays.
Possible Wealth Tax Exemption for Non-Residents
A recent ruling by the Supreme Court of Justice of the Balearic Islands has opened the door for non-residents who own property in Spain through shares in foreign companies to claim an exemption from Wealth Tax.
This decision allows affected individuals to recover the amounts paid over the past four years, plus interest for late payment.
At Bufete Frau, we assist clients in filing rectification requests and claiming tax refunds, ensuring that every procedure is properly documented and successfully processed.
Banks Must Cover Mortgage Appraisal Costs
The Spanish Supreme Court has confirmed that banks must assume several costs associated with mortgage arrangements, including:
- Property registration fees
- Agency fees
- Appraisal costs
- 50% of notary fees
However, the borrower remains responsible for the other 50% of notary fees and the Stamp Duty (Impuesto sobre Actos Jurídicos Documentados).
Consumers who have paid these costs unnecessarily are entitled to request a refund. At Bufete Frau, our lawyers can guide you through the claim process and help you recover what is rightfully yours.
Rent-to-Buy Contracts: A Flexible Option
A rent-to-buy contract (“arrendamiento con opción de compra”) is an ideal solution for those undecided between renting and purchasing a property.
Under this agreement, the tenant rents the property for a specific period and later has the right to purchase it.
If the tenant decides to buy, part or all of the rental payments already made can be deducted from the final price.
However, if the tenant chooses not to purchase, the rent paid will not be refunded.
This type of agreement combines two contracts — rental and option to purchase — offering both flexibility and security.
For more information on any of these legal topics or to receive personalised advice, visit the Bufete Frau blog or contact us directly.
