Keywords
Summary

Keywords

1. Free movement of capital - Treaty provisions - Scope - Purchase of immovable property - Included

(EC Treaty, Art. 73b (now Art. 56 EC))

2. Free movement of capital - Restrictions on the acquisition of immovable property - Requirement of prior authorisation for the purchase of real estate situated in areas of military importance - Exemption only for nationals - Not permissible - Justification - Conditions

(EC Treaty, Art 73b (now Art. 56 EC))

Summary

1. Whatever the reasons for it, the purchase of immovable property in a Member State by a non-resident constitutes an investment in real estate which falls within the category of capital movements between Member States. Freedom for such movements is guaranteed by Article 73b of the Treaty (now Article 56 EC).

( see para. 14 )

2. Article 73b of the Treaty (now Article 56 EC) precludes national legislation of a Member State which, on grounds relating to the requirements of defence of the national territory, exempts the nationals of that Member State, and only them, from the obligation to apply for an administrative authorisation for any purchase of real estate situated within an area of the national territory designated as being of military importance.

The position would be different only if it could be demonstrated to the competent national court that, in a particular area, non-discriminatory treatment of the nationals of all the Member States would expose the military interests of the Member State concerned to real, specific and serious risks which could not be countered by less restrictive procedures.

( see para. 24 and operative part )