Hundreds of British expats in Portugal may lose their homes due to 19th-century 'land grab' law where government can seize land if built on state property

Law means state can take any home it thinks was built on public land

Portuguese government say environmental policy designed to protect coast

But expats, who face months of uncertainty, accuse them of land grab

British expats in Portugal fear they could lose their holiday villas under a draconian new law which could force them to prove their property was built on private land.



A 'water resources law' in the country spread concerns the government could take back any land which was originally owned by the state.



Hundreds of retired couples and families with second homes in the country now face an anxious wait to see if their property will be affected.



Hundreds of Brits have holiday homes and villas in Medeira (pictured) and other areas of Portugal

The Times reported the new legislation will affect houses close to the sea - meaning thousands of holiday homes built around the country's beaches could be affected.



Jersey-born Paul Abiati, 50, who owns a £123,000 seafront house in Madeira, has hit out at the new law, which the Portuguese parliament is now considering amending following a huge outcry.



He 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.'



Another expat, Roger Hardy, said he will struggle to sell his property in the Algarve until the issue is made clearer.



Expats in Portugal are facing months of uncertainty over new environmental laws which could affect their holiday homes

Portugal's parliament has recently put forward an amendment, relaxing the laws and potentially saving British homeowners from having to prove the history of their property.

But no date has been set for finalising the changes, meaning those living in the country face potentially months of uncertainty.



A spokesman for the Portuguese government told the Times 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.'



Portugal introduced a special, lower tax rate for foreigners two years ago to encourage them in to boost the economy.



But many expats are now fleeing southern European countries and selling off their homes as property prices tumble and the region struggles with recession.

