Best Project Finance Lawyers in Las Palmas de Gran Canaria

About Project Finance Law in Las Palmas de Gran Canaria, Spain

Project finance is a method of funding large infrastructure and industrial projects through a financial structure where lenders look primarily to the revenues generated by the project for repayment, rather than the general assets or creditworthiness of project sponsors. In Las Palmas de Gran Canaria, an important economic hub in the Canary Islands, project finance is commonly used for initiatives involving renewable energy, ports, transportation, tourism infrastructure, and public-private partnerships. The legal landscape reflects both Spanish national law and certain autonomous regulations that support investment and innovative financing structures.

Why You May Need a Lawyer

Engaging a lawyer who specializes in project finance in Las Palmas de Gran Canaria offers significant advantages and is often essential for several reasons:

• Drafting, reviewing, or negotiating complex financing agreements
• Complying with local, national, and EU regulations governing financing structures
• Structuring public-private partnerships and collaborating with government agencies
• Establishing security interests and collateral arrangements
• Navigating environmental permitting and regulatory approvals
• Dispute resolution in case of contract breaches or financing defaults
• Ensuring investment protection for foreign investors
• Managing risks related to currency fluctuations, taxes, and repatriation of funds

Local Laws Overview

Las Palmas de Gran Canaria follows Spanish national legislation, supplemented by certain regional statutes. Key legal aspects impacting project finance include:

• Commercial Code and Civil Code: These codes outline the contractual frameworks for finance agreements, joint ventures, and guarantees.
• Public Procurement Law: Governs public works, concessions, and outsourcing, which are foundational for structuring public-private projects.
• Renewable Energy Regulations: Favorable Canary Islands frameworks incentivize renewable energy projects, frequently funded through project finance.
• Tax Benefits and Incentives: The Canary Islands Special Zone (ZEC) and other fiscal regimes offer tax incentives for qualifying projects.
• Security over Assets: Spanish law sets out procedures for creating and enforcing pledges, mortgages, and other security interests commonly used in project finance.
• Environmental and Planning Permits: Regional requirements must be satisfied for most major infrastructure projects.
• Foreign Investment Laws: Approvals may be required for non-EU investors, but Spain generally maintains a welcoming attitude toward foreign capital.

Frequently Asked Questions

What types of projects are commonly financed with project finance in Las Palmas de Gran Canaria?

Projects in renewables (wind, solar), ports, hotels, transport infrastructure, and water treatment often use project finance structures in Las Palmas de Gran Canaria.

Is foreign investment allowed in project finance projects in this region?

Yes, foreign investment is welcome and common, though some projects may require prior administrative approval, especially in sensitive sectors.

What is a typical project finance structure?

A typical structure involves a special purpose vehicle (SPV) that raises funds secured mainly by the revenues generated by the project, rather than broader company assets.

Which risks must be carefully managed in project finance?

Legal due diligence, regulatory compliance, currency and interest rate risks, construction risks, and operational risks are all crucial in local project finance.

What local incentives are available for projects in Las Palmas de Gran Canaria?

Investors can benefit from incentives like the Canary Islands Special Zone (ZEC), reduced corporate tax rates, and specific grant schemes for renewables.

How are environmental issues addressed in local project finance transactions?

Rigorous environmental studies and permits are required by law. Lawyers ensure all necessary assessments and approvals are obtained before construction begins.

What is the role of public-private partnerships (PPPs) in project finance?

PPPs are frequently used to deliver public infrastructure where private entities collaborate with authorities on financing, construction, and operation.

Do you need a local partner to carry out a project finance transaction?

While not always legally required, having a local partner brings valuable knowledge of regional regulations, business practices, and stakeholder relationships.

How long does a project finance transaction typically take in this region?

Timelines vary widely, but from initial due diligence to financial close, processes can take from several months to over a year, depending on project complexity and regulatory requirements.

What happens if there is a dispute during the life of the project?

Dispute resolution usually follows the mechanisms set in the contract, which may include negotiation, mediation, Spanish courts, or international arbitration.

Additional Resources

The following resources can provide helpful guidance and further information for individuals seeking project finance legal support:

• Government of the Canary Islands - Departments of Industry, Energy, and Public Works
• Commercial Registry of Las Palmas
• Canary Islands Special Zone (ZEC) Authority
• Spanish Chamber of Commerce - Las Palmas Delegation
• Las Palmas Official College of Lawyers
• Local business and economic development agencies supporting infrastructure and innovation projects

Next Steps

If you are considering engaging in a project finance transaction in Las Palmas de Gran Canaria, the following steps are recommended:

• Outline your project objectives and determine the scale of funding required
• Gather all relevant business, financial, and ownership documentation
• Consult with a lawyer experienced in project finance to evaluate legal requirements and structure
• Undertake risk and feasibility studies, including legal due diligence
• Engage with potential financial institutions and local authorities early in the process
• Ensure all environmental and permitting obligations are understood and planned for
• Retain continuous legal support throughout contract negotiation and execution to preserve your interests and ensure compliance

Taking early legal advice lays the foundation for a successful and compliant project, minimizing risks and facilitating a smooth financing process.