Island of La Palma, Canary Islands, Spain

La Mancha Spa Hotel   investment project


     Questions and Answers (C)  

     Spa Hotel Project

Have grants been researched for this project?

To encourage foreign investment, this project will benefit from a subsidy/grant from the Canary Island’s Government through the “Feder Fund” provided by the European Regional Development Fund to encourage the building of Hotels under the “regional competitiveness” objective in the Autonomous Community of the Canary Islands.

This subsidy/grant will be between 10-15% of all construction costs of the entire development and will be paid on completion.

Further consideration must be given to negotiating with the Government of La Palma who have available funds to encourage investment to the island. This can be arranged on any investors behalf when visiting the island and full support from the Partners of this project can be expected, local rumour suggests that grants of between 10-20 million Euros are available (see tax incentives)

What is the value of the project site?

The  valuation of this project site (224.725 Square Metres/55.53 Acres is 85 million Euro, this figure will be open to negotiation with a prospective purchaser and is inclusive of all Planning Permissions and Engineering Drawings etc.

What is the build time for the project?

This construction is projected  and costed to complete in 36 months  A quicker build time say 24 months would add 20% extra to the building costs.

What is the cost of the build?

The estimated building cost of this project is 130,540. Million Euros calculated over a 36 month build period.

This project is eligible for a 10 - 15% rebate on building costs when completed and certain conditions are met through the EEC’s Feder Fund (See above & tax incentives)

Further incentives are available through the Canaria Island’s Government

End Users

Interest has been shown in this project by three Global Hotel Operators/Groups who wish to have a management contract to operate this site and these will be passed on to any purchaser.

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