Hundreds of British ex-pats in Portugal to lose homes
Hundreds of British expats could lose their Portuguese holiday homes because of a 19th-century law that allows the government to seize any property built on state land.
The draconian law could force Brits to prove their property was built on private land, reports the Daily Mail.
Many retired couples and families now face months of uncertainty as they wait to see if their property will be affected.
According to the Daily Telegraph, houses close to the sea are likely to be the worst affected.
Paul Abiati, 50, who owns a £123,000 house by the sea in Madeira is less than pleased with the new law, told the newspaper: "This is a breach of international and European laws. A citizen, when they buy a private property, has a right to a certainty over it, and peace and enjoyment under fundamental human rights principles."
Many foreigners moved to Portugal after the country introduced a special, lower tax rate for foreigners two years ago to encourage them in and to boost the country's economy.
According to the Daily Mail, many expats are now fleeing southern European countries and trying to sell their holiday homes as prices tumble amid the recession.
Roger Hardy, another expat, told the Mail he would find it difficult to sell his Portuguese home until the issue is clarified.
A clause was added to the law meaning it does not apply to properties built before 1951, giving some homeowners a reprieve.
However, those with newly built villas have an anxious wait ahead of them.
A Portuguese government spokesman claimed the policy was important for the country's environment and not a 'land grab' as has been claimed.
He said: 'The law was designed to preserve coastal, river and reservoir areas from over-development. It is within EU law.'
Recent figures show nearly 90,000 people abandoned their Mediterranean dream last year and moved back to Britain.
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