New holiday lets laws

[Joseph]

It has been suggested the new laws and restrictions to letting out your apartment  for holidays will devastate the housing market and close many businesses including airlines etc.The economy will suffer and unemployment will escalate.
What do you think?
Of course Spain will reverse this stupid law when they see builders stop building ,house prices fall and the economy suffers a serious blow but the damage will have been done, as with the UK they do not like admitting mistakes and it takes forever to reverse laws.
As the only people who can make money from this in the short term is all inclusive hotels so I can only assume they have bought this law.
Of course when towns like Caleta close down the people will not want to go to these hotels.

[woe10]

It IS the hotels that have forced this law.

Barcelo is a Worldwide Global Corporation. The first to open a Western Hotel in China.

They have the money, money talks. They walk over Governments from here to the Caribbean and beyond.

[Some Bloke]

Or maybe not....?

http://www.janetanscombe.com/news/canaries-heads-national-league-tables-for-tourist-spending-in-spain.html

[SheilaW]

This excerpt from that link tells a story:
"Luxury tourists stay in large hotels where there are spas, or golf, and a choice of multiple restaurants, with extra “excursions” and activities like diving, yachting, or star watching led by qualified specialists and professionals â€" all of which are paid for separately to the hotel accommodation."

Maybe those luxury tourists are paying separately, but they're still designed to be cocooned in their hotels - the management will do everything they can to ensure that. They won't want them spending their money on "local" things. Meanwhile, I'm seeing exactly the opposite needs being voiced by holidaymakers asking for information in English, and even more so in French. In France, in particular, there's a large minority (or maybe even a majority?) of holiday-makers who can't stand big hotels, full stop. They hate the idea of being a commodity to a big business and simply refuse to stay in them. Mention the dreaded AI and they get the vapours . They want self-catering apartments or villas; they want B&B; they want to stay in someone's home; and if they can't have them they might be enticed to stay in a small, family-run hotel, but NEVER a big, impersonal one. And if they have the money they want THEIR OWN pool, hot tub etc. Some are happy to be in inland villages but many people are drawn to the islands by the beaches and the sea, and they want bars and restaurants too. Those luxury hotels (which we don't have many of here) really appeal to people splashing out on a once-in-a-lifetime trip, it's true. But each tourist only has one life, duh! Does the tourist industry really think that business people forced to spend half their lives in swish faceless hotels really want to holiday in them, too? Not likely!

Shouldn't the future of eco-tourism or sustainable tourism (or whatever we're supposed to call it) that Fuerteventura is keen on be about living the way locals live, rather than building enormous concrete hotels? Funnily enough, that's exactly what a lot of people want!

I don't think the Canaries government owes a living to all the businesses in Corralejo and elsewhere, certainly not the expat businesses. And they can't be expected to weep for foreigners who can't pay their mortgages. But they do owe it to their own people to help the tourism industry to thrive in every way. That means catering to (almost) all sectors of the market: from AI guests to totally independent travellers.

How hard do you have to shake them to get them to see that?

[Ivemovedon]

I think there is only one truly luxury 5 star hotel in the whole of Fuerteventura. And that is the one at the far end of Corralejo by the dunes. Even this is let down by its location set opposite a derelict building site and what were empty retail outlets. Was going to take the wife there once for a few days but have to say it turned me off. Stayed in a lot of the other big ones both north and south and although very nice i wouldn't call any of them luxury 5 star by any means. Fuerteventura is not the place i'd recommend to anyone if they wanted that type of holiday. Now if they were after mid level accomodation, a nice pleasant resort, nice beaches, naturism and out of the way villages to get a taste of the local culture then i'd be saying thats the place to go.

I wouldn't now though what with the rental nonsense. There are places just as good elsewhere without the hassle.

[Some Bloke]

But from what I understand, no one is saying that holiday letting is outlawed, merely that it is now to be controlled and subject to licences and approved minimum standards in touristic areas (where for example one could let through the sole agent which would most likely turn out to be the management company of the complex)? Keeping obviously residential areas/developments residential strikes me as a good thing?

It seems to me that many of those complaining do so purely from self-interest. That is, they want to be able to continue to let illegally and trouser money far away from the Canarian economy, while providing the bare minimum in terms of standards of accommodation. Rightly or wrongly, it would appear that the Canarian administration has decided that it no longer wants the lower end of the market and this is a step in a different direction.

We can debate the possible unintended consequences all we like, but it's their country and them's the rules they've decided on. I think people should respect that.     

[erik_tonny]

We can debate the possible unintended consequences all we like, but it's their country and them's the rules they've decided on. I think people should respect that.     

BRAVO !

[Grampiangranny]

Having looked at the official 2014 Fuerteventura Touristic Area map, it appears that El Cotillo is not included as a 'touristic area', apart from an area of the malpas to the South of the village.

Does that mean El Cotillo properties can legally be let short term?  Asking on behalf of several friends who have rented in the village for many years now.

[Ivemovedon]

But from what I understand, no one is saying that holiday letting is outlawed, merely that it is now to be controlled and subject to licences and approved minimum standards in touristic areas (where for example one could let through the sole agent which would most likely turn out to be the management company of the complex)? Keeping obviously residential areas/developments residential strikes me as a good thing?

It seems to me that many of those complaining do so purely from self-interest. That is, they want to be able to continue to let illegally and trouser money far away from the Canarian economy, while providing the bare minimum in terms of standards of accommodation. Rightly or wrongly, it would appear that the Canarian administration has decided that it no longer wants the lower end of the market and this is a step in a different direction.

We can debate the possible unintended consequences all we like, but it's their country and them's the rules they've decided on. I think people should respect that.     

Not sure how thats going to pan out then as i was led to believe that no licenses are to be issued henceforth.  (unsure if its true). And as at the moment i would think they are in very short supply to all but the luckiest (or the biggest).

[fifi]

Details of how to let a property in a non Tourist area are on these links. http://www.janetanscombe.com/news/agencia-tributaria-canaria-statement-on-tax-situation-for-private-rentals-under-new-vivienda-vacacional-decree.html/comment-page-1#comment-432744

http://www.janetanscombe.com/news/letting-a-property-in-the-canaries.html

[Ivemovedon]

thanks fifi

[oystercatcher]

It's not just the Canaries; it's happening all over Spain.  Here's Mallorca:http://www.onthepulse.es/new-laws/neighbours-have-final-say-property-rental-tourists-mallorca#
And the points raised on this forum echo our own.http://www.laymyhat.com/forum/viewtopic.php?p=285961&sid=40feae11f566c70933619f08000ba8b9

[ashworth]

Just been informed by legal advisor who is heavily involved in the Canarian Letting new laws. The Government of Fuerteventura have said they are not prepared to put the clause in to not allow apartments and villas in tourist areas to be Licensed for weekly holiday rentals because of the damage it would do to businesses on the Island. All these properties can now obtain a licence as long as they meet the standard criteria the cost is about 500 Euro for the licence and all the legal work and all rental income will be subject to 20% tax paid to Fierteventura tax office and you will need to register as a commercial business. More to follow

[KWC]

Just been informed by legal advisor who is heavily involved in the Canarian Letting new laws. The Government of Fuerteventura have said they are not prepared to put the clause in to not allow apartments and villas in tourist areas to be Licensed for weekly holiday rentals because of the damage it would do to businesses on the Island. All these properties can now obtain a licence as long as they meet the standard criteria the cost is about 500 Euro for the licence and all the legal work and all rental income will be subject to 20% tax paid to Fierteventura tax office and you will need to register as a commercial business. More to follow

That's fair to me. Sure the cost will be passed on but mortised over 52 weeks or however letting period would not run up to hundreds per week!

[Ivemovedon]

Oops. If true that's going to upset someone

[thomo]

Be very careful it could be another scam
read the post by Janet dated the 8th July
http://www.janetanscombe.com/14353-2/comment-page-1#comment-435583

[thomo]

Just had this back from Janet

Hi Thomo,
             the key word here is "government" of Fuerteventura. It doesn't have a Government, it has a Cabildo, but the law concerned is a Canarian Government law. They can't just say they're not going to "put the clause in". What does that even mean? Put it in what? This is Canarian law! It's already "in it", and it's beyond the power of a Cabildo to do anything about it!


Don't do anything without qualified legal advice from an abogado, is my best advice! Certainly if it involves handing over money to "experts" who'll help you get a licence that simply cannot exist!

All best

Janet

[ashworth]

I can not see the people who have power to make decisions in Fuerteventura would allow a law that will cripple its Economy. It is madness. Do you have figures of how many people come to this Island each week staying in Independent villas and apartments who then go out into the towns and spend there money in Bars ,Shops and Restaurants. Get rid of them and you are in big truoble.

[woe10]

The "Government" does as the big All Inclusive Hotel Chains tells them to.

[thomo]

Just been informed by legal advisor who is heavily involved in the Canarian Letting new laws. The Government of Fuerteventura have said they are not prepared to put the clause in to not allow apartments and villas in tourist areas to be Licensed for weekly holiday rentals because of the damage it would do to businesses on the Island. All these properties can now obtain a licence as long as they meet the standard criteria the cost is about 500 Euro for the licence and all the legal work and all rental income will be subject to 20% tax paid to Fierteventura tax office and you will need to register as a commercial business. More to follow

Got to be a scam,  over 2500 people advertising holiday lets on the island,  say half want to get a licence, at 500 euro a throw,  â,¬625k for something that don't exist,     

[Archer]

The tourist authority have already stated they want tourist numbers to REDUCE and quality/spend per tourist to increase. Hence the push for accommodation upgrades and more 4/5* establishments.

[Ivemovedon]

Oh well. Ces't la vie. What will happen will happen. Well at least thats how the Greeks looked at it as brown stuff hit the fan.