Spanish land grab law is a law that came into force in the Valencia region in 1994.

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).

A land grab law was introduced in Spain to prevent individual owners of rural property in areas that have been re-classified standing in the way of developments that would benefit the community as a whole, by improving services or creating affordable local housing. Because the value of their property would increase significantly, the Spanish land grab law obliges these rural owners to contribute with cash and/or part of their land towards bringing in benefits such as mains water, sewerage, new roads etc., even though they may not want such facilities.

Unfortunately, in one area of Spain the land grab law was badly drafted, 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.

As in the UK, notices of intent must be published, but just 15 working days are allowed to present an alternative urbanisation plan or an objection. Since many landowners are absentee and foreign, this can cause a breakdown in the process and this is where there can be problems with the Spanish land grab law.LRAU Valencia, the Valencian version of the law, only applies to the Valencian Community, i.e. the provinces of Alicante, Valencia and Castellon. The rest of Spain has different versions of the law.

In Valencia, the land grab law does not affect anyone with property in an area already urbanised or designated as such. This represents virtually all apartments, townhouses and other linked properties, plus a large majority of villas.

The Spanish designation urbanised/urbanisation does not necessarily mean a complex with a pool etc. Most streets of detached villas are in such zones. Purchases in such zones remain unaffected, although buyers of such property in Valencia should still be aware of the LRAU Valencia and take independent legal advice regarding their property purchase.

The large majority of owners of property in Spain have never experienced any significant problems in their many years of owning property there. These cases are not an anti-British campaign by the Spanish, and Spaniards and other nationalities as well as British have been affected by the LRAU Valencia.

Land grab in Spain is not as daunting a problem as it has sometimes been made out to be and the use of independent legal advice continues to be the best way of protecting yourself when buying a property in Spain, no matter what the property or location. Beyond that, although the same principals relating to advice apply wherever in Spain you wish to buy, land grab in Spain is only a problem for those considering buying property in the area of the Valencian Community and outside of an existing urbanisation. Beyond this area and for property in already urbanised land, it is sufficient to take good legal advice and thus easily avoid the problems of land grab in Spain.