Bob and Jane* thought they had found their idyllic retirement in the sun. They had bought Spanish land, gathered all of the permits they needed and began to build. Six months later their house was bulldozed by the local government. Welcome to the Landgrab Law.

When the so-called Landgrab Law was introduced in the 1990s, it's purpose was essentially well-meaning: To prevent rural landholders from unnecessarily blocking development. The main points of the law were to acknowledge that as populations grow, land needs to be rezoned from 'rural' to 'commercial.' Also, to mandate that rural property owners share the financial cost of the building the new infrastructure (water mains, electricity etc).

This may sound like an odd situation. A law that says not only do rural property owners no longer have the right to protest against rezoning their land, they must also help pay for its development. To understand this, it is important to understand the deep aversion of the Spanish culture to change. With rural property-owners holding power over the government (without the protections of Crown Land mandatory reacquisition), a country badly in need of increased services can find itself held to ransom by a small handful of people who are simply opposed on principle.

Unfortunately, in the Valencian region, the law was badly drafted and the almost inevitable mismanagement by an archaic and clumsy Spanish bureaucracy, coupled with bullying developers, led to stories like Bob and Jane's – and the problems began.

Expat Focus first touched on the fallout from the Landgrab Law back in 2005. At this point, the loopholes in the Valencian Landgrab Law were wide and the expat fear of soon being counted among the ranks of 'displaced persons' was high.

The EU Council even got involved, forcing Spain to answer for the law and decreeing that it be changed. For those who oppose the laws, this is proof enough that the law should never have been introduced in the first place.

These opponents are missing the point. The demand that Spain alter the law is just that: A demand for alteration, not repeal. The basic purpose of the law (to enshrine Spain's right to extend the reach of badly needed infrastructure) was protected.

While Spain still possesses fewer economic tools in her arsenal than her neighbours, who could begrudge her ensuring that development is as smooth and timely as cash-flow allows?

Bob and Jane certainly begrudge it, as do the other foreign owners with similar stories - but do the numbers add up? Although there are anecdotal reports of disgruntled property owners, the actual occurrence of real problems is low.

Conversely, a negative (and ill-informed) perception of the law has become ingrained in expat folklore.

Myth: All Spanish home-owners should worry
Fact: The problematic draft of the law exists only in the Valencian region and only a small fraction of home-owners have been affected.

Myth: Any home can be taken
Fact: If a home is in an urbanised area (and most of them are, that's the point of urbanisation), they are unaffected.

Myth: This is a racist law
Fact: Most of the people affected by the Landgrab law are Spanish. Many of them are fighting for holdings that their family have owned for generations. The tiny minority of land-owners who are fighting this law have much more at stake than being able to keep their holiday home.

It is undeniable – and understandable - that potential investors are intimidated by the prospect of more facing even more difficulties when buying property in Spain. Even the smoothest transaction is long, confusing, expensive and illogical. The almost deliberately obstructive Spanish red tape is no laughing matter, and contradictory information is par for the course. Jumping most of the property-buying hurdles depends strongly on who you know, luck, and occasionally simply going back to the same office on a different day to speak with a different person.

This is both the frustration and the charm of Spain.

It is also undeniable that there have been victims like Bob and Jane. Owners like these are not inventing stories to entertain their friends back home. However, these tragic situations are not due to malice on behalf of the Spanish authorities; they are due to a fundamentally flawed Spanish administrative system that is long due for a complete overhaul.

For Bob and Jane though, the motivations behind their home being confiscated are irrelevant. The fact remains that they are without property or compensation.

The focus should not be on repealing a basically sound law. Acknowledging stories like Bob and Jane's - and ensuring that they are taken care of in a meaningful way - will have a far more positive, and immediate effect on Spanish property owners than knee-jerk legislative responses.

*Names changed

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