The awaited State System benchmark index of rental prices has now been published using data collected from 11.2 million rental agreements during the last four years. Issued by the Ministry of Transport, Mobility and Urban Agenda, it will be updated every year and will gather data on 1.7 million properties and 33,662 census sections. This…
The Ayuntamiento de Mogán has modified its 2020 tax calendar to delay several municipal tax payments, including IBI property tax, until October. Residents and non-resident property owners with direct debits set up with the Town Hall will now pay 100% of their IBI tax in October rather than 50% in May-June and 50% in October….
If you buy a Gran Canaria property and find hidden structural or other defects, here are your consumer rights. Spanish law makes different provisions depending on whether you buy a second hand property or a new build. For a second-hand property (as opposed to a new-build property) Hidden defects. If you buy a property from…
A recent change to Spanish law allows a Communidad (community of owners) to regulate holiday let activity within a building or complex. From March 6, 2019, a Communidad by a simple majority of 3/5 can ban outright holiday rentals within a community. This replaces the previous rule in the Ley de propiedad horizontal that required…
The Canary Islands Government plans two significant changes to local taxation rules that could affect Gran Canaria property owners. IGIC rises to 7% after a year at 6.5% IGIC is the Canary Islands version of VAT. It was set at 6.5% in 2019 (compared to 21% for the equivalent IVA in mainland Spain). The new…
Gran Canaria and the Canary Islands offer resident business owners and entrepreneurs generous tax benefits that are unique in Europe. The main benefit is that companies incorporated in the Canary Islands Special Zone (ZEC) only have to pay 4% corporation tax. This compares to average of 25-30% in other areas of the EU. Other advantages include an…
In December 2018 and January 2019, respectively, the Spanish Supreme Court issued judgments against the Government of the Canary Islands regarding the current regulation of holiday homes. These judgments cancel the following three rules of said regulations: 1) Prohibition of holiday rental homes in tourist areas This ban has been annulled in a very clear…
This article explains what is going on with holiday rental property law in Gran Canaria and how it affects property owners. The 2015 current rules are still in force and efforts to modify them seem to have stalled. Proposed new regulations require changes to both national and regional rules but would clear up many of…
This article explains what recent European Court of Justice and Spanish Supreme Court judgements mean to consumers who paid too much in interest to their Spanish bank or mortgage provider due to Clausulas Suelo (Floor Clauses). Court judgements have established that you can reclaim excess interest payments stemming from Floor Clauses in your mortgage payments….
The Canary Islands Government has announced a new draft of its holiday rental rules designed to replace the current law dating to 2015. The draft is only meant as a “working document” before it enters into public consultation and then into a final version to be to be approved by the Canarian Parliament. This could…
