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This is the crux of the problem. The definition of "commercial" has never been tested in the courts. As it currently stands, however, it is understood to mean that private residential dwellings may not be let out except to friends and family. Now we debate what "friends and family" are, and that is something that hasn't been tested in the courts either!
Any "advert", paid or free, which introduces a third party unknown to the owner, is not allowed unless the property it is advertising has, or is part of a property that has, a touristic licence. And now we debate whether a website is an advert or not.
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Re: Canary Islands Tourism Regulations Act
Quote:
Originally Posted by Janet
Dunno!
This is the crux of the problem. The definition of "commercial" has never been tested in the courts. As it currently stands, however, it is understood to mean that private residential dwellings may not be let out except to friends and family. Now we debate what "friends and family" are, and that is something that hasn't been tested in the courts either!
Any "advert", paid or free, which introduces a third party unknown to the owner, is not allowed unless the property it is advertising has, or is part of a property that has, a touristic licence. And now we debate whether a website is an advert or not.
Absolute minefield.
Janet we have been here before havnt we this could run and run what i do is not not strictly legal too you are suppossed to only rent through the exploiter the one with the touristict licence or are you? David
Janet we have been here before havnt we this could run and run what i do is not not strictly legal too you are suppossed to only rent through the exploiter the one with the touristict licence or are you? David
Yes, been here many times before! And I suspect we'll be here many times again!
Your situation is the other side of the coin because your complex is a genuinely and legally licenced touristic complex. As such, the law allows one management agency on site, and bookings go through them.
Again, though, there is a "friends and family opt out", and you are allowed to take bookings yourself and inform the agency that you have got tenants privately ... provided that they have not been acquired through "commercial" adverts.
Provided your "guests" are "friends or family", and the currently accepted definition of that is "someone who did not come from a commercial advert", you are fine!
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Re: Canary Islands Tourism Regulations Act
Quote:
Originally Posted by Janet
Provided your "guests" are "friends or family", and the currently accepted definition of that is "someone who did not come from a commercial advert", you are fine!
Does this explain why there are so few so-called rural hotels, because they have to apply for a touristic licence, given that they were not built under one ?
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Probably. They're often renovated old buildings, like our farmhouse and cottage, so the touristic licence will almost certainly have been applied for when the renovation or prescripción urbanistica was applied for. But it's a recognized procedure, though, to apply for a touristic licence. The problem is often the requirements to install smoke alarms, redo kitchens, etc, rather than getting the licence itself.
The general rule is very simple, and pretty draconian. Unless a property has a touristic licence, it cannot advertise for paying guests. Friends or family can be guests, and can pay, but they have to be people that have not been introduced to the owner by means of an advert.
Who would take action against someone in breach of these regulations, whose interpretation appears to be unclear and open to abuse in any case? Do you know if any "Authority" has taken action against someone in a residentail complex who has been "commercially" letting? My understanding is that there is no such case?
If you look at the rental property sites like Owners Direct and Holiday Lettings for example you will see many adverts from owners on "residential" complexes in Tenerife.
Perhaps the "Authorities" turn a blind eye as they would be reducing the number of visitors to Tenerife if they took action. The irony of course also is that the "Authorities" levy your annual tax under Form 210 Impuesto sobre la Renta de no Residentes partly on the grounds that you do receive a rental income even if you live in a residential complex. Or at least that is what my adviser told me. An element of hypocrisy here