Spanish Courts Rule Against Expats

British Expats in Spain have had their appeal dismissed by Spanish Courts after trying to bring a case against a Spanish Government minister.

London (Pryce Warner International) May 25th, 2011 – Several Expats brought their case to the Superior Court of Justice after the Andalucian minister for public works and planning, Josefina Cruz, made a public statement that British Expats claimed was defamatory.

Earlier in the year Cruz made the following comment regarding the illegal housing controversy affecting Expats in Almanzora Valley, Almeria: “This is an intrusion of people…who are not of this country, who have settled here illegally and have shown a lack of respect for the culture of the territory, for the culture of the landscape and the culture of planning… and are now demanding that we solve a problem that they are responsible for creating.”

These comments were then elaborated upon in a comment made in the British Expat newspaper Costa Almeria News: “My Comments mean exactly what they say: foreigners who have built illegal houses in Andalucia have shown no respect for us. I find it incredible that one seeks to defend people who have committed illegal acts.”

Several Expats claimed that this constituted defamation on the grounds that she had disparaged a group of people for being British, which would have been illegal under Spanish law.

However, the Superior court decided to uphold the decision of the supreme court that Cruz had not disparaged a group for being British, but that she had only criticised people that had knowingly bought illegal houses.

A recent study carried about by the Spanish government identified 12,697 "irregular" constructions in the Almanzora Valley, the majority belonging to British expats who had bought their homes in good faith.

Those that brought the case against Cruz have accepted the decision but maintain that her comments unfairly criticise many Expats who bought the now illegal homes with no ill intentions and under a convoluted Spanish system.

Those that lost the case intend to show their disatisfaction in the upcoming local Spanish elections, the winner of which will have to deal with the problem of what to do with the thousands of illegal homes and disgruntled Expats.

The decision came at a time when Spanish ministers are conducting a property roadshow around Europe, including a stop in the UK. The roadshow is aiming to show the strength of the Spanish property market despite a dramatic crash in the wake of the global financial crisis. While the market is showing some signs of recovery, there remain over 700 000 unsold or empty properties along the Spanish coast.

Any Expats considering buying property in Spain should always seek professional advice before doing so. The recent illegal housing controversy and the global financial crisis have left the Spanish property market in a state that makes it exceptionally difficult to navigate. Despite this many British people considering moving abroad will consider Spain, particularly as some analysts are suggesting now is a good time to invest. Anyone considering doing so should seek professional assistance before committing to any purchases, and should always exercise extreme caution when buying off-plan housing.

David Harra, a Senior Market & Financial Ananlyst with Pryce Warner International, a financial services company for expats worldwide, commented: “While the comments made by Ms Cruz cannot be said to constitute defamation in the legal sense, they do however hurt the reputation of British property buyers in Spain. The majority of people caught up in the scandal were oblivious to the illegality when buying and it is unfair to tar an entire group as having knowingly committed a crime. The housing problem highlights the need for greater transparency in Spanish property law and also the need for Expats to consult local estate agents and international property managers prior to agreeing any purchase.”

Pryce Warner International Group provide International Asset & Investment Management, Independent Financial Advice & QROPS Overseas Pensions.

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By: Aneil Fatania
Financial Editor
Pryce Warner International Group
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