Judgment — ECLI:EU:C:2000:401
Date: 2000-07-13
Language of the case: Italian
Court formation: Sixth Chamber
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Anti-discrimination;Non-discrimination on grounds of nationality
Concepts: Free movement of capital and freedom of payments
Procedure: Reference for a preliminary ruling
Origin: Italy

Summary of the Judgment 
1. Free movement of capital — Treaty provisions — Scope — Purchase of immovable 
property — Included 
(EC Treaty, Art. 73b (now Art. 56 EC)) 
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SUMMARY — CASE C-423/98 
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 — Justifica­
tion — Conditions 
(EC Treaty, Art 73b (now Art. 56 EC)) 
1. Whatever the reasons for it, the pur­
chase of immovable property in a 
Member State by a non-resident con­
stitutes 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 Arti­
cle 56 EC) precludes national legisla­
tion 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 obliga­
tion 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 com­
petent national court that, in a parti­
cular area, non-discriminatory treat­
ment of the nationals of all the Mem­
ber States would expose the military 
interests of the Member State con­
cerned to real, specific and serious risks 
which could not be countered by less 
restrictive procedures. 
(see para. 24 and operative part) 
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