Canary Islands

[CSE]

Gunnar and family---

Hola y bienvenidos a LMH
Hallo en welkom op LMH

[lorca]

Gunnar and family---

Hola y bienvenidos a LMH
Hallo en welkom op LMH

yes bienvenidos!

..and the very best of luck to all of you with properties in the Canaries - not a nice situation to be in. I hope the authorities see sense soon

[djfwells]

This can't bode well for Tourism on the Islands, can it ? - Let's keep our fingers crossed ! - http://tinyurl.com/64nb3qu

[Elle1971]

Hello Foxy - another Lanzarote person here. I'm down in Playa Blanca.

Elle xx

[Marks]

This might be of interest:

http://issuu.com/canarianweekly/docs/cw_web_issue_728

[Ben McNevis]

Thanks, Marks. Very scary! Is it true or just propaganda?

I wondered if it might be Lupa|n-holiday-rentals.com as they are not just a listing site but an agent on the ground in the south of Tenerife. Their website is still offering holiday lets in the Canaries, so I guess it can't be them.

The story looks plausible based on what I already know. In previous years, there has been baseless propaganda: almost every year since 2001 there's been a story in the papers saying that the number of tourism inspectors is being increased from 3 to 15 (usually). However, in previous years, there were no follow-up stories about fines.

If the story is true, I can't understand why agents nearby are carrying on with business as usual. You'd think they would be aware of what has been happening locally.

Things don't seem to add up.

[Ben McNevis]

Sorry for this, but it gets worse and worse...

I've been keeping myself in the loop by looking at Janet Anscombe's blog on the subject. The latest is that 7000 (seven thousand) owners have been fined or are in the process of being fined. The fines are severe (several thousand euros).

The information is reliable as the source is the Boletin Oficial Canarias.

The publication is daily and on some days there have been as many as 10 fines declared. The fines are listed in the Boletin in cases where they cannot be served on individuals, so this reflects the number of fines issued to foreign (non-resident) owners.

An example is: http://www.gobcan.es/boc/2011/222/009.html
which is taken from the 10th November edition: http://www.gobcan.es/boc/2011/222/

Incidentally, if you are in danger of being fined, you should set up a Google alert with a search based on your NIE (or NIF) which consists of an 'X' or 'Y' followed by 7 or 8 digits then another letter, which you will find on any tax documents. Then if you appear in the BOC, you will at least know about it.

Sorry again for the bad news for those who are carrying out an activity, perfectly legal and positively encouraged in most parts of the EU but, heavily penalised in the Canaries. If anyone has any cunning plans, I'd like to know.

[Ben McNevis]

An update:

There are 2 organisations tackling the situation. One is a political lobbying group called ALOTCA which is aiming to get enough signatures on a petition to force a debate in the Canarian parliament. You can join here:

http://www.janetanscombe.com/news/form- ... lotca.html

The other is aimed at helping and advising those at risk of being fined. I'm not 100% certain of whether it's bona fide yet as most of its website is not on public view and there's a 100 euros joining fee. It is called C.O.L.A. I will be investigating joining them because progress on the political front is likely to take years and many owners need a strategy yesterday.

The figure of 7000 fines is still being banded around. Looking at B.O.C., the rate of issue of fines seems to be declining but only "seems" because those mentioned in BOC are only the foreigners without a Spanish address for service of legal documents. It may be that the authorities are currently targetting areas where there is a higher proportion of Spanish owners.

My last count of listing site ads for canarian properties stands at just over 19,000. That's quite a lot of owners still blissfully unaware that they are sitting ducks for an 18,000 euro fine.

Advice from all quarters seems to be: stop advertising. Many can't afford to do that but they should stop the ads that are visible on internet by the inspectors in Las Palmas.

[lorca]

¡ Que tonterías - buena suerte a todos!

[Ben McNevis]

I suggest caution in dealing with COLA.

There are 100,000 apartment owners. Many are retired people reliant on income from their apartments and now in a desperate situation. It seems almost inevitable that someone will see an opportunity to say "pay us 500 euros and we'll show you how to continue letting without getting fined" in order to take advantage of these desperate people.

Well, COLA are saying almost exactly that. I'm not saying they are offering something that they can't deliver, but I've asked them for information but none was forthcoming... unless I paid my 500 Euros.

There is a new page on Janet Anscombe's site:
http://www.janetanscombe.com/illegal-le ... ssion-page
where I am trying to get a plan together alongside the rather slow progress of ALOTCA.

[Mouse]

What a horrendous situation Ben - I sympathise with those who rely on rentals for income and no doubt feel they've had the rug pulled from under them.
Spain has relied on the construction industry to fuel the economy and in th emain it has boomed because of foreign investment; why? Because they want to use them as holiday homes and see an income stream through letting.

If the law was clear from the start many of those who bought would have bought elsewhere - for sure.

There were rumbles around this type of law in the Balearics, but all seems to have gone quiet for the time being. That is until the HOteliers start kicking off again...and blaming their poor occupancy rates on the fact there're private rentals.

Mouse
x

[Ben McNevis]

There were rumbles around this type of law in the Balearics, but all seems to have gone quiet for the time being. That is until the HOteliers start kicking off again...and blaming their poor occupancy rates on the fact there're private rentals

Yes, Mouse, that's why it's crucial that we eventually win in the Canaries. Otherwise, this kind of thing is bound to spread.

We have reason on our side, not to mention the airlines, taxi drivers, car hire companies, bars, restaurants, shops and attractions. Unfortunately the authorities are not listening because currently the Canarian Government is collecting up to 100,000 Euros per day in fines.

[Ben McNevis]

An update:

The fines are coming quite thick and fast. People who have been letting a single apartment or villa are being fined 18000 euros. There is 15 days to appeal and if you appeal the fine is reduced to 13800. People with multiple apartments are getting much bigger fines. I spoke to someone who has received a fine of 66,000 Euros.

The opposition to the law and its enforcement is widespread but highly fragmented. ALOTCA is taking the legal route through the courts and will eventually take it to national and European level if neccessary but this is a painfully slow progress and is of little use to those who have already been fined and those about to receive fines.

There are various other forms of action possible and there is much discussion going on. I am in favour of getting as many owners as possible in touch with each other so that we can share views and experiences and formulate plans. In particular I want to get a few hundred people on to the task of warning the vast majority of owners who are unaware of the law and its enforcement. To this end, I've created a forum for those affected by the law. You can find it at: www.holisnaps.com/canaries

I set it up yesterday. We have fewer than 20 people so far. We need a few hundred in order to be useful. If you own a Canarian property, please join.

The numbers are staggering. The government's own estimate of the numbers of illegal accommodations on the islands is 100,000. If that number is right, it represents half of the total accommodation. A quick count of adverts on the listing sites can reveal 20,000 adverts just by looking at about 10 sites. There are others who are less visible (e.g. with their own websites).

[Ben McNevis]

Me again, 11 months later. I've been keeping an eye on the situation all this time. At the same time, I've been keeping our apartment empty.

The fines are now much less frequent: those announced in the BOC are down to less than one per week. Why the drop? There are plenty of apartments still advertised and only a very very small proportion of owners have been fined. The Canarian governments statements on illegal letting have been uncompromising - they appear to be determined to stamp it out. But the reality seems to be a lack of direction. One theory is a complex web of corruption involving politicians and the hotel lobby who fund them. It's all about appearances and saying one thing while believing another.

Looking at the numbers of Canarian holiday lets advertised, it seems that the purge isn't working. I've been monitoring a basket of 15 listing sites for just over a year. In that time the total number of adverts has gone up from 20087 to 26681. That's a 32.8% increase in advertising.

As it stands, we've got ongoing costs and no income and it's still not safe to return to letting.