Cash strapped Spanish governments are seeking new and inventive ways to crack down on property lettings in residential areas, and, issuing huge fines for non compliance.
The crux of the matter is that owners are not permitted to let on a short-term holiday basis within a residential complex. The owner of the property and agent are deemed equally in the wrong. Some owners have already been fined the minimum of 30,000 euros.
Letting Agent Fined For Illegal lets
Some lettings agents have been fined a staggering €200,000 for letting properties which were let out on residential complexes. They local government officials are also checking on individual owners. We reported here recently that many parts of the Euro zone will be seeking all kinds of new fines from property owners to help them with their debt burden.
It is hard to see how this could not fail to affect the tourist industry in the Canaries and other Spanish resorts, an industry which is already suffering losses. Is this a way for the government to recoup some of those losses? Tenerife was the first in line to employ more inspectors who then visited residential complexes with warnings of minimum €30,000 fines for law breakers. However, the trend is now spreading to mainland Spain with Barcelona joining in so far.
Which Law Applies?
The law that this circulates around was the controversial 1995 Letting Law which made made many residential apartment complexes illegal for holiday lets. Inspectors have been checking web sites too for those who may be letting out privately.
In theory, a private owner can apply for a ‘touristic License’ to be able to let their property, however, in practice, there has been a ban on these for all property except high end new builds, which leaves owners stuck between two conflicting laws. One which is civil and the other a tourism law, making it difficult for owners to comply or argue their case. Many owners are unaware that any such law exists, and in true Spanish fashion, laws don’t apply in all areas, adding to the confusion. Legal cases continue, with those hit arguing that the scale of the fine is out of proportion to the crime committed.
* Extracts from source – Canarian Weekly