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CJEU Joined Cases C-52/16 and C-113/16 / Judgment

'SEGRO' Kft. v Vas Megyei Kormányhivatal Sárvári Járási Földhivatala and Günther Horváth v Vas Megyei Kormányhivatal

Policy area:
Free movement and equality
Deciding Body type:
Court of Justice of the European Union
Deciding Body:
Court (Grand Chamber)
Decision date:

Key facts of the case:

References for a preliminary ruling — Article 63 TFEU — Free movement of capital — Rights of usufruct over agricultural land — National legislation permitting such rights to be acquired in the future only by close family members of the owner of the land and cancelling, without providing for compensation, the rights previously acquired by legal persons or by natural persons who cannot demonstrate a close family tie with the owner of the land.

Outcome of the case:

On those grounds, the Court (Grand Chamber) hereby rules:

Article 63 TFEU must be interpreted as precluding national legislation, such as that at issue in the main proceedings, under which rights of usufruct which have previously been created over agricultural land and the holders of which do not have the status of close relation of the owner of that land are extinguished by operation of law and are, consequently, deleted from the property registers.