The new regulations

Gran Canaria is one of the best property markets in the World for living and investing. It features huge opportunities due to the recent financial crisis.

However, regulations in the tourist area are extremely difficult, as you will notice below, and it constantly changes. Before buying property, you must receive a very specialised legal advice so you can be 100% sure you will be able to enjoy or manage your property the way you always wanted.

Canarian Goverment
Order 113/2015

On May 28th 2015, this order regulating our holiday property market was passed. It excludes not less than 90% of those homes located in tourist or rural areas, whose owners would not be allowed from now on to rent the properties to whoever they want. The only possible use would be to rent them by mean of an authorized hotel business, in charge of operating the complex as a whole.

Gran Canaria’s island council (Cabildo de Gran Canaria)
Territorial Special Plan for tourist areas (PTEOTI)

It demarcates every single tourist area in the island, and defines the territorial strategy for each of them.

Town Halls
General Urban Plans (PGO)

They establish whether a specific building or plot of land must be devoted to residential or tourist use. This limits the legal uses of the property.

Reactions

The above regulations are the most restrictive ones of their kind in Spain. They have been very controversial since they were first announced. In fact, the pressure against order 113/2015 could lead to a suspension in the future depending on political changes. However it's legally valid at this moment and the Canarian Goverment has the right to enforce it at any time. In the meantime, General Urban Plan of Maspalomas is facing thousands of allegations. This is a list of the groups rejecting these regulations:

  • The Canarian Parliament, which has recommended the suspension of the order, though this is not legally binding.
  • ASCAV, the Canarian association for holiday rentals, as the main representative of the affected owners and main advocate for the suspension of the order. WeTrust’s legal team is part of the founding member group of ASCAV, and an active party in the top-level negotiations with the Canarian Goverment.
  • CNMC, the national commission for competitive markets, wishes to review the order 113/2015 just in case it illegaly favours hotel businesses.
  • Current and potential residents in the tourist area.
  • Owners wishing to independently rent their properties.
  • Owners facing an incompetent hospitality management at their complexes.
  • B&B owners willing to rent just some rooms of their properties (i.e. using Airbnb.com).

So, should I invest or wait?

Current situation is full of investment opportunities that cannot be found elsewhere. WeTrust advises you to grab them… but only with the professional help of a legal team knowing your necessities as an investor, and able to defend your interests in an independent way from agents and owners.

That is the only way to make informed decisions before investing, including the type of possible uses for your new property, and the expected, realistic return out of it. WeTrust knows how to accomplish this, and will be glad to help.