Tony Jefferies/telegraph.co.uk

Or should that be Andalusian nightmare? Recent legislation similar to the notorious Valencia 'land grab' law is causing serious problems in southern Spain. Tony Jefferies meets some British victims

When Fergus and Sarah Quinn decided to move to Spain they wanted everything to be right. A false start in France a few years ago had alerted them to the many pitfalls of buying property abroad, and since then, their two children had been born.

So it was important to leave nothing to chance. They researched suitable areas very carefully and, having left their London jobs, took time to identify the right location and property.

Even so, things haven't run smoothly - largely because of the recently introduced Andalusia Land Law. Brought in to control urban growth and the increase in countryside properties, the ley del suelo has spread confusion throughout southern Spain. It has also dashed the hopes of countless Britons and other foreigners intent on retiring to the sun and tending their own little patch of land.

The aim of the new law is to prevent building on rural land unless it is for agriculture or tourism. It doesn't matter whether you own five acres or 5,000 - you can't build a new house. The only exception is that you can redevelop the site of an old property, but you're restricted to the existing dimensions. And to add to the confusion, there seem to be different interpretations of the law in different provinces.

"We spent eight months driving around western Andalusia looking for the right area and the right property," says Fergus, 39. "We settled on Cortijo El Olivar, a finca - farm - with a small house, an outbuilding and about 10 acres of land near Arcos de la Frontera."

The Quinns completed their purchase in December 2002, with the intention of building elsewhere on the land. They had visited the planning authority in Arcos de la Frontera and were told they could go ahead with their new home.

The only restriction, apparently, was that the property had to conform to traditional farmhouse design. "That was what we wanted anyway," says Fergus.

The land law was introduced in September 2003, by which time the Quinns had engaged an architect, surveyor and builder and produced studies to prove that they would obtain at least some of their income from the land.

"We had trouble after our house in France was damaged by storms, so we made sure we did everything correctly," says Fergus. "We took out Spanish residency and even joined an agricultural cooperative to ensure the subsidy on olive trees.

"Our plans were submitted to the town hall in January 2004, and were approved two months later. They were then sent to the provincial government in Cadiz.

"At that point we understood that the town hall in Arcos needed junta [regional government] approval to grant the application. But when I went to the planning office in Cadiz in July, I was told the junta only sends an advisory report back to the town hall.

"I was also told that the junta wanted evidence of sufficient income from the land for the past four years before granting permission for a new building on the basis that we were farmers. No one had mentioned this, and of course it was ludicrous to expect us to have the data. Also, they didn't specify what a sufficient income would be.

"Incredibly, he still insisted that he would be making only a recommendation and then suggested we apply for a barn to the town hall and actually build a house. The junta wouldn't be involved because the town hall deals with farm buildings.

"Considering we have followed every legal rule, spent tens of thousands of euros on our house and gone out of our way to conform when so many others don't, it's incredibly frustrating. All this law is doing is encouraging illegal projects."

In line with local practice, the Quinns' builder began work on their house last June while the application was still being processed. Landscaping apart, the house is ready to live in. But they and children James and Sorcha, now aged four and three respectively, can't leave their rented flat in Arcos because there is no permit for electricity at El Olivar. And that has to come from the town hall after the plans for the property have been approved.

"We don't regret doing it this way," says Sarah. "We wanted everything to be legal, but there's now a doubt over our house. The town hall is actually backing us. They know we want to live at El Olivar and work the land. But in theory, we could still be fined a huge sum and lose our house."

Illegal building had been tolerated in Andalusia. The town halls levied a fine of 5 per cent of building costs for a completed property and issued a permit. Under the new law, fines go up to 400 per cent of building costs, and properties can be demolished.

This echoes the notorious Valencia Land Law, which has left many foreign owners of reclassified land heavily out of pocket. Fortunately, in the two years since the ley del suelo was introduced, not one Andalusian house has been pulled down.

Estate agent Tom Beker of Mary Beker Country Properties says interpretation of the new law differs from province to province.

"In Malaga you need to commission feasibility studies and agricultural projections or you can buy a property with a ruin and planning permission.

"In Cadiz province they are just not passing anything in the countryside unless it's for rural tourism. This is where Spanish celebrities spend their holidays and they want it protected. No one will admit it, but it's a very political issue.

"It is still possible to find country properties, but you can't just fly in for the weekend and buy that ideal place in the sun. You need money but you also need to plan properly," he says.

Carmen Marced, head of Cadiz's land regulation department, denies there is any deliberate difference in enforcement between the provinces. "It's a new law and different provinces might apply different meanings," she says.

A definitive ruling is pending from the regional government in Seville, she adds. But the law was introduced in 2003 and thousands of Britons have been left in limbo.

The Quinns have resubmitted their application as a farm building, with the full knowledge of the local council. They have also been told it should be possible to apply for change of use to a house in the future.

But none of that puts Fergus's mind at rest. "I'm an EU citizen, living in an EU country and I'm being told I can't have a house that conforms to planning regulations on my property," he says. "It's a ridiculous situation, prejudiced against newcomers. I'm convinced this is contrary to EU law and, if we can't get a satisfactory outcome, we'll have to think about taking the issue to Brussels.

Valencia Land Law

Introduced in 1994, this law, known as the LRAU, has been labelled the "land grab law". It relates to three land classifications: land already urbanised, land suitable for urbanisation and rural land. Land in Spain is reclassified when more people build in an area or a developer wants to build on semi-developed or rural land. The Valencian law was introduced to prevent individual property owners from holding up development. Because the value of their property increases when an area is reclassified, owners are obliged to pay for benefits such as mains water and sewerage installation whether they want them or not.

But the law is open to abuse by developers and only 15 days' notice for objection is given once an area is designated for reclassifying. As many owners in the Valencia region live abroad, this is considered unreasonable - a view supported by the European Union in a recent ruling. A new version of the law is passing through the Valencian parliament and will penalise developers who fail to keep to the terms of their contracts.

Andalusia Land Law

This law, in force since 2003, is aimed at ensuring urban developments are contained within set rules and rural developments are limited to protect the countryside. Fines have been increased from between 1 and 5 per cent of construction costs to 12 per cent of market value. Even suppliers such as water and electricity companies can be fined for working on sites that don't meet the requirements of the law.

In rural areas, no building is permitted on land unless for agricultural or residential tourism. New houses can be constructed on the site of existing ruins as long as there is a roof, and only a dwelling house for the farmer is permitted. The law does not cover agricultural buildings. Legal challenges have been brought against the law by Torremolinos council and others on the Costa del Sol have indicated they will follow suit.

In Marbella, the council has refused to revoke building permits handed out by the previous administration because they don't fit with the new law. The council says it would be liable for huge costs from lawsuits if it did so.

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