What Is an “Out of Planning” Property in Spain — Can It Be Sold?

If you own or are considering buying a property in Spain,particularly in areas such as Altea, Albir or La Nucia in the Costa Blanca, you may have come across the term:  “fuera de ordenación” (out of planning)

This concept often generates uncertainty, especially among international buyers and property owners. Does it mean the property is illegal? Can it be sold? Does it affect its value?

At ALTEALEX — Real Estate Legal Lawyers, we regularly advise clients on this issue. The reality is clear:  An out of planning property is not necessarily unsellable but it must be properly understood and managed.

An “out of planning” property refers to a building that  was legally constructed at the time, but no longer complies with current urban planning regulations.

This typically occurs when:

• A new General Urban Development Plan (PGOU) is approved.
• Land use changes.
• Permitted building lines, heights or densities are modified.
• New green spaces, roads or public infrastructure
• New coastal or landscape protection regulations.
• Reorganisation of residential or rural areas.

The property remains legally recognised, but its status is limited under current regulations. It is important to emphasise that a non-compliant property is not an illegal property, but rather a property that does not comply with current regulations, and has therefore come to be in a special planning situation.

It is quite common to find properties that do not comply with planning regulations on the Costa Blanca, particularly in areas with a long history of development or those close to the coast, such as:

• Altea
• Altea la Vella
• Mascarat
• Sierra de Altea
• Albir
• La N ucia
• Calpe
• Alfaz del Pí
• Benidorm and the surrounding area

No, and this distinction is crucial.

• A Illegal property is one built without licence or in breach of regulations

• Out of planning property:  originally legal, but now non-compliant with updated rules

However, both situations may create similar concerns for buyers.

While the property still exists legally, its status can have important implications:

1. Restrictions on Renovations or Extensions

• Structural changes are limited or prohibited
• No extensions or increases in floor area may be carried out
• Only essential maintenance or conservation works are allowed

 This reduces flexibility for future improvements.

2. Potential future impact

• Some properties may be located in areas earmarked for future infrastructure or conservation.

• In specific cases, in the medium to long term, they could be subject to demolition or compulsory purchase.

3. Impact on Property Value

Buyers perceive higher risk when future development is restricted and/or legal status is nuclear. The result is lower demand  and potential price reductions.

These type of proerties are usually priced lower than similar properties in a standard planning situation and they may represent an investment opportunity on the Costa Blanca depending on the buyer’s profile or objective.

4. Mortgage Limitations

Some banks consider these properties to be higher risk, especially if legal certainty is not clearly documented. This may result in:

– Mortgage refusal

– Lower loan-to-value ratio.

– More stringent conditions.

5. Administrative and Urban Planning Limitations

Local authorities may:

• Restrict use or changes
• Require compliance in specific situations

6. Buyer Distrust

For many buyers —particularly foreigners— this classification raises immediate concerns.

This can delay or block the transaction.

Yes, you can sell it. It is perfectly possible to sell a property that does not comply with planning regulations in Altea or anywhere else on the Costa Blanca.

However, the success of the transaction depends on how the situation is managed.

A property with this status:

✔ Can be legally sold
❌ Cannot be sold in the same way as a fully compliant property

Selling this type of property requires:

• Full transparency
• Clear legal explanation
• A structured sales approach

This is where professional legal advice becomes essential.

At ALTEALEX, we approach each case individually and realistically.

1. Legal Assessment

We analyse:

• Urban planning classification
• Legal history of the property
• Applicable restrictions

Result: a clear understanding of the real situation.

2. Documentation Review and Clarification

We ensure that:

• The status is properly documented
• Buyers receive accurate information
• Legal risks are clearly explained

3. Strategic Sale Approach

If the property cannot be fully regularised:

• The sales strategy is adapted
• The target buyer profile is defined
• The transaction is structured to minimise risk

Often focusing on informed buyers or investors.

4. Possibility of Partial Regularisation

In some cases:

• Certain elements can be regularised
• Legal clarity can be improved

Enhancing marketability.

Realistic Solution: Not Everything Needs to Be “Fixed”

One of the most common misconceptions is that:  “The problem must be fully solved before selling”. This is not always true. In many cases:

✔ The property can be sold
✔ The transaction can be secured
✔ The risks can be managed

Without full regularisation.

Let’s imagine a sea-view villa in the old town of Altea built in the 1970s. Over time:

• Planning regulations change
• The property becomes non-compliant.

Result:

• It can be sold without any problem.
• It is priced more attractively than other similar properties in the area.
• Extensions are not permitted, but maintenance is.
• Premium location with sea views
• Great potential as an investment as it allows for demolition to build a block of flats

This type of property can be ideal for buyers looking for a second home in Altea at a good price with the possibility of building a block of flats in the future.

Is it a good opportunity to buy a property that is no longer compliant with planning regulations on the Costa Blanca?

It can be an excellent option if you are looking to:

• Invest in properties in Altea at a competitive price
• Buying a charming property in prime locations
• Generating rental income
• Enjoying a second home without the need for extensive extensions or renovations
• It can also be an excellent investment if new planning regulations allow for increased building volume by bringing the construction into line with current standards, for example by converting an old villa into a block of flats

This type of property is ideal if:

• You do not need to carry out extensions or structural alterations
• You are looking for rental income or holiday use
• You want to buy below market price

The issue is not the “out of planning” status itself.  The issue is how it is handled.

With the right legal strategy:

• Buyers gain confidence
• Risks are controlled
• The sale becomes viable

Conclusion: Yes, It Can Be Sold — With the Right Approach

An out of planning property in Spain is:

✔ Legally existing
✔ Potentially sellable
❌ Not straightforward

It requires clarity, transparency and professional management.

If you are considering selling a property with urban planning limitations in Spain, particularly in Altea or the Costa Blanca:

Contact ALTEALEX for a confidential consultation.

We will tell you:

• What your property status really means
• Whether it affects the sale
• The best strategy to proceed

ALTEALEX — Real Estate Legal Advisory

Clarity. Strategy. Legal Security.

Turn complexity into a successful transaction.