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Klaus Konle v Austria,case 302/97, 1 June 1999

Facts: In the province of Tirol, local authorities requested proof from those who wanted to buy local property that they would not use the property as a secondary residence. The rule applied with equal effect to Austrians and foreigners, but closer examination showed that foreigners were more frequently rejected.

Holding:  Article 56 EC (ex Article 73b) and Article 70 of the Act concerning the conditions of accession of the Republic of Austria preclude a scheme such as that introduced by the Tiroler Grundverkehrsgesetz 1996

Reasoning: National legislation on the acquisition of land must comply with the provisions on the Treaty on freedom of establishment for nationals of Member States and the free movement of capital. The right to acquire, use or dispose of immovable property on the territory of another Member State is the corollary of freedom of establishment (Case 305/87 Commission v. Greece [1989] ECR 1461, paragraph 22).

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