2024-02-13 00:21:33
17 years after we joined the EU, the moratorium fell
A long-standing ban on EU citizens buying agricultural land in Bulgaria fell as a result of an inquiry by the Burgas District Court to the EU Court of Justice in Luxembourg.
The question was asked by the chairman of the court, Evgeni Uzunov, who is a judge in a case brought by an Austrian. (the magistrate’s comments see below). The foreigner is looking for the rights to 3 sea properties near the “Sarafovo” district. And he is leading a case against the son of his Bulgarian friend, with whom they used to buy land in our country.
The Austrian and the Bulgarian met in Moscow in the early 1990s and became good friends.
In 2004 decide to buy agricultural land in us
The foreigner paid a total of 60,000 euros in 3 installments for 3 plots in the Kösheto area. The Austrian knew that foreigners could not acquire Bulgarian land, and therefore agreed that only the Bulgarian figure in the notarial acts. The arrangement was that, after the restriction on EU citizens is lifted, they would be transferred to him.
Thus, in 2004 and 2005, fields were bought meters from the sea. In 2006, the Bulgarian prepared 3 affidavits for each of the properties, in which he declared that his Austrian friend owned ideal parts of the three properties.
Later, however, the settler died and his son inherited the properties.
In the meantime, the Austrian citizen filed claims, demanding that it be established that he is the owner of ideal parts of the plots in question, and that the transactions be recognized as simulative.
Faced with this case, the Burgas District Court asks itself the question of the compatibility of Art. 3 “c” of the Law on the Ownership and Use of Agricultural Land (ZSPZZZ) with EU law. And according to the article in question 3 “c” “property rights to agricultural lands can be acquired by Bulgarian or foreign natural persons who have resided or been established in Bulgaria for more than 5 years”. This rule appeared in 2014 when, instead of removing restrictions on the acquisition of agricultural land by EU citizens, a new residency requirement was introduced. It was proposed by BSP deputies.
In 2014, President Rosen Plevneliev vetoed it, noting that in practice the provision
creates unacceptable limitation
of Bulgarian citizens, introducing a requirement for them to be settled. And for EU citizens, additional restrictive conditions should be introduced.
A criminal procedure against Bulgaria follows, but more than 7 years later, Art. 3 “c” is a valid law. Or at least until the answer of the court in Luxembourg, which was received in Burgas at the beginning of this year.
The Bulgarian court asks whether Luxembourg represents a restriction contrary to the Treaty on the Functioning of the EU, the legal framework in Bulgaria, which sets as a condition for the acquisition of land residence for at least a 5-year period. And is that it
discrimination relative to the free movement of capital and people
The answer is that “The Treaty on the Functioning of the EU does not allow a legal arrangement of a member state, by virtue of which the acquisition of agricultural land on its territory is conditioned by the requirement that the acquirer (the assignee) has resided for more than 5 years in this Member State”. Thus, 17 years after Bulgaria became a member of the EU, the court in Luxembourg canceled the last restriction for EU citizens to acquire agricultural land in our country.
The court in Luxembourg also commented on possible measures with which Bulgaria could limit the acquisition of agricultural land for speculative purposes. And it cites examples – imposing higher taxes on transactions for the resale of agricultural land soon after it is acquired, requiring a significant minimum term for agricultural land leases.
In the specific case, it will have to be established whether the Austrian citizen was misled and whether there was actually a purchase-sale between the individuals. The next meeting is scheduled for February 28. Both sides have requests for evidence.
The son of the deceased partner claims that his father was considered the sole owner of the plots, that this was known to the institutions and the public, and that there were no conflicts or any lawsuits.
Judge Evgeni Uzunov: Why can’t the French have a plot here, but we can in France?
My motive for asking this question, on the one hand, was to exhaust all possibilities before the European institutions and because a criminal procedure was underway against Bulgaria. This means that we do not apply their conditions to change our law. But this is not the case – we have a mechanism to react”, Judge Evgeni Uzunov commented on the case before “24 Chasa”. However, he admits that he did not expect such a response.
“I thought that our sovereignty as a country should be respected. This prohibition is not unconditional, it concerned sedentariness – i.e. if you have permanent intentions to live and invest, it does not prevent you after 5 years to register as a farmer, to develop an activity.
There is logic in this ban precisely because of the change in the status of agricultural land. It is one thing to buy land in order to cultivate it and participate in the agricultural production market, it is another to buy it for investment purposes to change the purpose. Which is already a distortion of the goals of the law.
We do it supposedly to have equal rights, but we start abusing it, and this is how we end up with concrete complexes in our resorts. Often these absurd complexes, which are not even suitable for operation and are sold off as rough construction, are some kind of money draining schemes.
We, as a state, should rather make it very difficult to convert agricultural land into a plot for construction – this is the solution”, the magistrate is convinced.
On the other hand, he believes that one of the positive effects of the opinion of the EU court is to stop the criminal procedure against the state. And to prove that our institutions work and are independent.
“We as a court are reacting, the parliament will have to comply at some point and change this text”, says Uzunov. He does not perceive it as a breakthrough, but rather as a useful move for the state.
“We can now directly rely on the answer of the court in Luxembourg when motivating our acts. We will see how we will implement it, but this decision will not change the situation in the whole country very much.
The court in Luxembourg argued that the term laid down in the law was discriminatory. Yes, I agree with that. We are in Europe, since we can buy a plot of land in France, it would follow that the French can also buy land in our country. Besides, it’s good that we already have such a practice, because we don’t need to be penalized for something that was already so easily circumvented before. Even before, foreigners could register a company in our country with a capital of one lev each and buy the land in the name of the company. Thus, this condition of 5 years of being settled was not actually fulfilled.
The huge concrete complexes were made exactly according to this mechanism. Agricultural lands were bought, status was changed and concrete mastodons emerged”, summarizes Uzunov.
But how will the decision of the court in Luxemburg affect the case in the Burgas District Court, which is yet to be concluded with a judicial act?
“The decision of the European Court says that even if there are restrictions in the law and the foreigner cannot acquire agricultural land, this is no longer the case. Henceforth it shall be understood that this person (the Austrian citizen plaintiff – b.a.) he was right. An opportunity is given to declare the real transaction as valid. And it should already be the new property title of the person who claims”, explains judge Uzunov. (24 cups)