Trouble in Paradise..the Canaries rentals clampdown

[fifi]

A place in the sun magazine is featuring a three page article about the "illegal lettings" in the Canary Islands in their August issue. Click on the page to magnify.

http://content.yudu.com/Library/A1xnst/APlaceintheSunAugust/resources/41.htm[/url][/url]

Page 2 &3 http://content.yudu.com/Library/A1xnst/APlaceintheSunAugust/resources/43.htm

[lander]

Hi Fifi, thanks for putting this up, it makes an interesting read, but strange that these articles so far don't make any mention of Fuerteventura.  I was out there in June and companies (don't want to mention names) were still advertising holiday accommodation on residential complexes, when I asked in a number of places about this clampdown people just seem to be completely confused by it all so are carrying on as normal! 

[fifi]

Hi lander, the courts are tied up with first and second appeals from the Tenerife and Gran Canarian fines and some have even been thrown out of court because they have not been able to deal with them within a six month period.

Because of this it will probably take a long time before we hear of anything on such a large scale in Fuerteventura. Janet Anscombe the campaign leader did say that there were fines being processed for Fuerteventura in one of her previous articles.
I met a lady in Corralejo a few weeks back who was telling me about  an owner one of the Infinity villas (I think that is the name of them from memory) being fined €18,000.  It was believed that someone locally denounced the owner.

I  have heard about  Rental /Estate agencies which  have been inspected on the Island.

[Deso]

Fi, if you edit the link and change the 43 at the end to 41 it will take you to the first page of the article 

[fifi]

Great Deso. Going to do that now.

[fifi]

No that doesnt work either Deso.

[Deso]

This should work then.

http://content.yudu.com/Library/A1xnst/APlaceintheSunAugust/resources/41.htm[/url][/url]


   

[fifi]

I bow to your superior knowledge oh great one.

Here goes again.


Perfecto.

[Deso]

I didn't get to be a leg end for nothing you know. It took a lot of posts about complete drivel.   

[fifi]

Good karma sent your way. Did you feel it? I pressed your praise button.

[Deso]

OOOOH!! I got a plus 1 , I'm all relaxed and at peace with the world now.   

[fifi]

So it really works. I knew it.

[HH]

I can't read that but found it here

http://www.aplaceinthesun.com/news/feature/tabid/131/EntryId/1955/Trouble-in-paradise-the-Canaries-rentals-clampdown.aspx

[KWC]

Interesting to say the least.

So the agents and owners are being fined, what about the actual holiday makers who are renting, will there come a time when they will get hammered as well.

I hope not obviously, as we are renting a villa in September and wouldn't like to get embroiled in this stuff.

[fifi]

I can't read that but found it here

http://www.aplaceinthesun.com/news/feature/tabid/131/EntryId/1955/Trouble-in-paradise-the-Canaries-rentals-clampdown.aspx

I wonder why you cant read it HH. It opens for me. Thanks for the other link. I have put the original link back on.

[fifi]

Interesting to say the least.

So the agents and owners are being fined, what about the actual holiday makers who are renting, will there come a time when they will get hammered as well.

I hope not obviously, as we are renting a villa in September and wouldn't like to get embroiled in this stuff.

Holidaymakers were being threatened in Tenerife with Police action and eviction and  harassed with documents saying  that they were breaking a consumer protection law by attempting to stay in illegal property. I doubt you will have any trouble at all unless a nasty neighbour wants to do a denuncia. Fuerteventura and Lanzarote were the last on the list for the inspections and so it will take a while before they catch up.

[KWC]

Interesting to say the least.

So the agents and owners are being fined, what about the actual holiday makers who are renting, will there come a time when they will get hammered as well.

I hope not obviously, as we are renting a villa in September and wouldn't like to get embroiled in this stuff.

Holidaymakers were being threatened in Tenerife with Police action and eviction and  harassed with documents saying  that they were breaking a consumer protection law by attempting to stay in illegal property. I doubt you will have any trouble at all unless a nasty neighbour wants to do a denuncia. Fuerteventura and Lanzarote were the last on the list for the inspections and so it will take a while before they catch up.

Thanks for that fifi.
Its acrazy situation isn't it! so they are effectively driving in more nails into the local businesses, due to this heavy handed rules etc.  They will force more and more visitors into the AI hotels, with an even bigger drop in the SC customers willing to spend in the local establishments.

Can't they work that out?

[fifi]

I can understand why there should be a law like that enforced to be honest Kenny. It safeguards the consumer by ensuring certain standards and also creates revenue for the Government through taxes etc.  It is no different really to the laws in other countries for letting out property but the fines at between €18000 and €300,000 are higher than some countries.

The problem is that the law had been around for donkeys years and was never enforced. People were duped into buying properties with "great rental potential " by Estate Agents. Without this rental from Holiday lets a lot of people can not afford to keep up the mortgage payments now because of the recession.

The Government issued press releases about the new team of Tourist inspectors and the enforcement of the old law which were not taken by the press and therefore the majority of people did not know that it was being enforced. Because of a Moratorium on licenses villa owners are unable to make themselves legal by getting one and people who had bought on complexes which had changed their status from Touristic to residential could not legally let out through a sole agent if there was one .

In the coming months there will be draft proposals put forward for changes. These changes will allow complexes which were previously Touristic to once again have a chance of operating legally. There will also be changes to the current sole agency part of the law. Residential complexes will not be effected by any change and will always be illegal to let out for holidays. Some land which is currently listed as being urban is being changed to Touristic and this may help people with villas in the future if they bring back licenses. There is a proposal being put forward to the European Parliament about the reintroduction of villa licenses but it is expected to take years before anything is done about it.

The majority of people would welcome being able to let their property legally and that is what the campaign is about.

[KWC]

I can appreciate that owners have to pay taxes, as we do here etc, but its the heavy handed - no notice penalties that are hard to swallow. Over here we have to declare our additional earnings and make the payments to the tax dept.  Im not aware of a supplementary licence of such, could be wrong as I don't rent out over here either

[fifi]

I agree. It is heavy handed. I think that there should have been a warning given for a first offence instead of an €18,000 fine. In the Uk you need to get permission from Local authorities for letting as far as I know if you want holiday letting status.

[HH]

I can't read that but found it here

http://www.aplaceinthesun.com/news/feature/tabid/131/EntryId/1955/Trouble-in-paradise-the-Canaries-rentals-clampdown.aspx

I wonder why you cant read it HH. It opens for me. Thanks for the other link. I have put the original link back on.

Hi Fi - Don't know why but its a good read anyway.  Thank you 

[potash]

There a lot of people who by now wish they had not even heard of fuerteventura let alone sunk a very large sums of money into the island but stupidity will come home to roost the banks will i am sure will be adding more unsaleable property's to there already huge stock pile, then you have the death duty rip off, and of course the airlines are cutting flights this winter due to short sited government idiots.It will really hurt not just the bar owners ect but the stupid policy makers that think there are no other holiday places to spend our hard earned cash.     

[potash]

The outlook is not good read all 5 slots


http://www.bbc.co.uk/news/world-europe-18338616

[kevin2003]

"Banks have 155.84bn euros of loans at risk of not being
repaid. That is 9% of all loans."

I don't accept this figure.Ireland,with an economy one tenth the size of Spain's and having experienced and almost identical property boom/bust is facing a bill of €70bn for it's bank bailout.

[fifi]

Spain does not have a reliable house price index based on actual selling prices. The Spanish housing  figures are usually based on an asking price index . Asking prices and sales prices are not the same. The real figures would be closer to Irelands drop of 50% in house prices. The banks are undervaluing their bad debts.

[fifi]

Ammendments to the  law (Translated)

The Governing Council requested the Advisory Council opinion on the draft law amending the Law 7/195 of 6 April

26/07/2012 ... 14:14 - Prime Minister's Office

The proposed amendment touches on three articles of the Law 7/1995: the 35 (standards relating to the tourist resort), the 75 (very severe offenses tourism) and 83 (tasks of the inspection tour)

The Governing Council decided to consider and seek opinion of the Advisory Council on the draft of Canary Law amending the Law 7/1995 of 6 April, on Tourism in the Canary Islands.

The proposed amendment touches on three articles of the Law 7/1995: the 35 (standards relating to the tourist resort), the 75 (very severe offenses tourism) and 83 (tasks of the inspection tour). The current wording of the first two (35 and 75) is given by the Law 14/1999 of December 30, amending the Law on Tourism 1995.

The change is intended in Article 35 is to add a third section (currently two), which was inadvertently omitted when handled amended by Law 14/2009. In this paragraph 3 shall be collected, and now collected in identical terms, exceptions to the standards of maximum permissible density on parcels intended for tourist accommodation, set out in paragraphs 1 and 2 thereof. These exceptions apply to alojativos establishments that are located in historic buildings and artistic, and architectural interest listed by the planning and are planned in urban non-residential tourism.

The amendment is intended to Article 75, is to add a new paragraph (1. Aa) after paragraph 1 thereof. This is intended to describe more clearly and precisely one of the behaviors that can be described as "very serious offense" and is consistent in construction, expansion, reform, rehabilitate or open a tourist accommodation lacking the "requisite "administrative authorization. The provision is mandatory determines when this authorization by reference to the Act to develop the Guideline 27, contained in Law 19/2003 of 14 April, which approved the General Management Guidelines and Management of Tourism in the Canary Islands (currently is pending which will come into force next year).

The amendment in Article 83, is to add a section 3 (currently two) so that tourism businesses can legally give the inspectors tourist personal data that are necessary for the exercise of its powers. Thus we claim the possibility provided in Article 11.2 of the Organic Law of Protection of Personal Data, Article 11.2, which states that whenever authorized by law, we may transfer personal data without consent stakeholders for the exercise of legitimate functions

[kevin2003]

[fifi]

 

[SurfJames]

Excellent find Fi.

Interesting that it's 'aplaceinthesun' jumping on the bandwagon.

I had a disagreement with them about 3 months ago. They had an article about properties in Fuerte and the rentals you could achieve - holiday lets.

I contacted them and told them the current situation and how they were mis-leading potential customers, and leaving themselves exposed to potential litigation. They refused to believe me at the time - but obviously now the penny has dropped - so they're talking the alternative view.

[fifi]

Hi Surfjames, well done. I received an email from Holiday lettings.co.uk a good while ago asking me if I wanted to advertise with them. I explained the situation to them and sent off all the links to the laws and they have now got an article on their website too advising people of the law. Before that they were totally unaware of the law. http://www.holidaylettings.co.uk/resources/owner-advice/buy-to-let-guide-for-your-holiday-home/tourist-apartment-licences-in-the-canaries-and-balearics,-april-2012/a-1-29-2680/