As most of you are aware, the subject of holiday rentals in the Canary Islands has been a hot (and sore) topic these past few years due to the fact that it was not properly regulated and in spite of this, the Canarian Government issued elevated fines to those who chose to let their properties out on a short-term basis. Back in May, a decree was hurriedly approved under Decreto 113/2015, 22nd May, and this has created a mix of emotions; relief because progress has been made in regulating this industry and anger because of some of the extremely confusing prohibitions included in this decree.
In any case, some headway has been made and some can now venture forward and try to obtain the necessary permits to derive an income legally from holiday rentals.
Basically, the law now states that a new rental category has been defined under the term “Vivienda Vacacional” or Holiday Property and of course with that come a number of requirements, regulations and obligations on the owner’s part. The main point of contention here is that the law strictly prohibits properties built on land classified as touristic to be included in this module as well as properties that form part of a Community of Owners whose statutes do not allow holiday rentals to take place there. Obviously, the thought that immediately pops to mind is, “where else would you do holiday lets if not in touristic areas” and you would be correct but it seems that hoteliers still carry a lot of weight in this matter and it would appear that they are not willing to let private owners take away from what they deem to be their industry.
In any case, let’s take a look at what the law says:
1. Permits must be obtained prior to letting the property out and the owner/company/representative must submit a sworn declaration regarding the nature of their new economic activity along with a series of other documents. The Administration must respond within 15 days and all approved properties must display a “Vivienda Vacacional” sign on the exterior of the building
2. Any marketing and publicity must reflect the true condition of the property as well as the amenities and services provided as well as the assigned registry number
3. There must be a sign in each property with a customer service line that must be available from 8am to 8pm minimum. Holiday makers must be advised beforehand of all conditions, requirements and how they can access the property upon arrival
4. The property must contain basic equipment as detailed within the decree
5. There are also legal requirements whereupon the property owner must forward reports to the Police regarding guests that stay at there
6. There must be a written agreement between the property and the guests prior to their arrival. This agreement must state conditions, time-tables, maximum number of occupants permitted and prices. If the reservation takes place via online methods, a copy of the reservation request must be preserved
7. Non-fulfillment of any of the articles included in the decree could give place to penalties of around 1.500 euros as per articles 77 and 79 of Canarian Tourism Laws (Ley de Ordenación del Turismo de Canarias)
Organizations such as ASCAV are still rallying, trying to overturn the article that states that properties situated on land classified as touristic cannot opt to a holiday let permit and it is my hope their efforts prove worthwhile in the end as it opens the doors to a powerful source of income that can only benefit the Islands’ tourist industry by offering a range of properties outside the All-Inclusive module that only lines the pockets of tour operators and hotels but does nothing for local economy and business owners.
Canary Admin Services provides services to obtain the necessary permits that would allow you to let your property legally without fear of any backlash from the Canarian Government since you would declare any income derived from the activity and pay the corresponding taxes. Contact me for further details on the procedure and I will be happy to pave the way for you.