A translation of the preliminary draft law has been published by the Ministerio de Agricultura, Alimentacion y Medio Ambiente and the body stated the new legislation will remove the uncertainty that currently prevails relating to coastal properties.
Viviane Reding, the EU's justice commissioner and vice-president of the European Commission, welcomed the announcement and backed the Spanish government for its efforts to protect its coastline.
She went on to praise the steps being taken to look after the environment "in a way that improves legal certainty and due process for citizens who own property on the Spanish coast or who are thinking of doing so".
Ms Reding added clarifying the law surrounding ownership of real estate on Spain's coastline will also boost the economy by helping businesses grow and encouraging foreign investment.
Certain "historical neighbourhoods", such as Pedregalejo and El Palo (Malaga), will no longer be classed as part of the protected area to help improve the legal situation in these areas, according to the statement by the Spanish authorities.