Best Project Finance Lawyers in Maspalomas

1. About Project Finance Law in Maspalomas, Spain

Project finance is a financing method where lenders focus on the cash flow and assets of a project rather than the balance sheet of the sponsor. In Maspalomas, a tourism hub on Gran Canaria, project finance is commonly used for large hotel expansions, resort developments, golf courses, and renewable energy projects that supply power to the grid under long-term agreements. An SPV or project company typically raises debt and equity, with lenders seeking limited recourse to the sponsor and security over project assets.

Spain uses a mix of national corporate law, contract law, energy regulation, and public procurement rules to govern project finance. The approach emphasizes robust due diligence, clearly defined EPC and O&M contracts, power purchase agreements or off-take arrangements, and well-structured security packages. Local planning and environmental approvals in Maspalomas can shape project timelines as much as the financing terms.

For residents of Maspalomas, the practical reality is that successful project finance depends on a credible market forecast, regulatory compliance, and aligned incentives between sponsors, lenders, and public authorities. A qualified legal counsel in Maspalomas can help tailor the structure to Canary Islands planning rules, local permit regimes, and cross-border lending considerations common in tourism-heavy projects.

2. Why You May Need a Lawyer

These are concrete, Maspalomas-specific scenarios where project finance legal advice is essential.

• You are expanding a hotel or creating a new resort and plan a project finance structure with an SPV and long-term debt. A lawyer can draft and supervise the project contracts, security packages, and intercreditor arrangements to protect lenders and sponsors.
• You are negotiating a power purchase agreement (PPA) or a renewable energy project in Gran Canaria. A solicitor can review tariff terms, curtailment risk, grid connection, and regulatory compliance implications for the Canary Islands market.
• You need to secure permits and environmental approvals for beachfront development. A legal advisor can coordinate with Maspalomas municipality authorities and the Canary Islands regional agencies to avoid delays and ensure enforceable conditions.
• You face a dispute related to EPC contracts or construction delays. An attorney can guide you through interim relief, mediation, or arbitration, and help structure rescue financing if needed.
• You are considering a public-private partnership (PPP) for local infrastructure or water services. A lawyer can navigate procurement rules, contract formation under Ley 9/2017, and risk allocation between public and private partners.
• You need to refinance an existing project loan or structure project-level tax planning. A solicitor can assess regulatory restrictions, cross-border refinancing options, and SPV governance to maintain lender confidence.

3. Local Laws Overview

The following laws govern key aspects of project finance in Maspalomas, with their official names and dates. They shape corporate structures, energy projects, and public procurement practices.

Real Decreto Legislativo 1/2010, de 2 de julio, por el que se aprueba el texto refundido de la Ley de Sociedades de Capital - This consolidated text governs corporate governance, shareholding, and the creation of Spanish sociétés mercantiles and SPVs used in project finance. It provides the framework for limited recourse financing structures and sponsor protections.

Source: BOE - Real Decreto Legislativo 1/2010

Project finance structures in Spain rely on SPVs that fall under the Ley de Sociedades de Capital to ensure clear governance and asset protection for lenders.

Ley 24/2013, de 26 de diciembre, del Sector Eléctrico - Governs the electricity sector, including generation licensing, grid access, tariffs, and regulatory framework for power projects. This law remains central for renewable energy financings in Maspalomas and the Canary Islands.

Source: BOE - Ley del Sector Eléctrico

Amendments to the sector rules have affected PPAs and project eligibility in Spain’s electricity market, with impact on project finance modelling.

Ley 9/2017, de 8 de noviembre, de Contratos del Sector Público - Sets the framework for how public sector contracts are awarded, including public-private partnerships and concessions that may involve project finance. It is relevant where Maspalomas or the Canary Islands public sector engages private partners for infrastructure or services.

Source: BOE - Contratos del Sector Público

Understanding procurement rules is essential to structure bids and debt arrangements in PPP or concession projects.

Notes for Maspalomas: Local planning and environmental regulations, as well as municipal licensing processes in San Bartolomé de Tirajana, interact with these national laws. Always verify the latest regulatory updates with the local Ayuntamiento and the Canary Islands government portals.

4. Frequently Asked Questions

What is project finance in Spain and how does it apply here?

Project finance uses a special purpose vehicle to finance a project based on its cash flow rather than the sponsor's balance sheet. In Maspalomas, this approach is common for hospitality, energy, and infrastructure projects.

Do I need a Spanish lawyer for project finance in Maspalomas?

Yes. A local solicitor with experience in SPVs, financing agreements, and Canary Islands regulatory matters will help navigate permits, contracts, and lender requirements.

How long does a typical project finance deal take in Maspalomas?

From initial due diligence to closing, expect 6 to 18 months depending on permits, procurement, and lender syndication. Complex energy or PPP structures can take longer.

What is the difference between a loan agreement and a project finance agreement?

A project finance loan is secured by project assets and cash flows, not the sponsor's general assets. A standard loan may rely more on sponsor credit.

How much due diligence is required for a hotel expansion in Maspalomas?

Expect extensive due diligence on land titles, planning permissions, environmental impact, construction contracts, and revenue projections for the project.

Do I need to register the SPV in Spain?

Usually yes. The SPV is formed as a Spanish sociedad mercantil, and it may be subject to corporate reporting and tax requirements.

What is a PPA and why is it important for Maspalomas projects?

A PPA is a long-term purchase agreement for electricity or power. It supports revenue certainty essential to project finance for energy projects.

Should I consider tax incentives in the Canary Islands?

Yes. The Canary Islands have special economic and fiscal regimes that may affect project costs and incentives. Consult local counsel for current options.

Can public procurement affect my project finance plan?

Yes. If your project involves a public partner, procurement rules under Ley 9/2017 will shape bidding, contract terms, and risk allocation.

What happens if a project misses milestones or costs overrun?

Lenders typically require covenants and step-in rights. You may need a restructuring plan, additional equity, or, in some cases, a refinancing solution.

Is a cross-border loan possible for Maspalomas projects?

Yes. Spanish SPVs often attract international lenders. Cross-border loans require careful currency risk planning and regulatory compliance.

5. Additional Resources

These resources provide official information and guidance relevant to project finance in Spain and the Canary Islands.

• BOE - Official State Gazette: The primary source for all Spanish laws cited above, including Real Decreto Legislativo 1/2010 and Ley 24/2013. Visit BOE
• Gobierno de Canarias: Official portal for Canary Islands regional regulations, planning, and economic incentives. Visit Canarias GOV
• European Investment Bank (EIB): Provides guidance on project finance standards, due diligence, and financing principles applicable across Europe, including Spain. Visit EIB

6. Next Steps

1. Identify project scope and lead sponsors. Clarify whether you will form an SPV and what assets will be pledged as collateral. Timeframe: 1-2 weeks.
2. Retain a Maspalomas-based solicitor with project finance experience. Schedule an initial consultation to assess structure, permits, and due diligence requirements. Timeframe: 2-4 weeks.
3. Engage a local notary and tax advisor to address land titles, permits, and tax structuring under Spanish law. Timeframe: 2-4 weeks.
4. Conduct due diligence on land, permits, grid access, and environmental compliance. Prepare a due diligence report and risk matrix. Timeframe: 4-8 weeks.
5. Draft and negotiate core contracts: SPV formation documents, EPC/O&M contracts, PPA or off-take agreement, and intercreditor agreements. Timeframe: 6-12 weeks.
6. Coordinate with lenders to structure debt and equity, including security packages and covenants. Timeframe: 4-10 weeks depending on syndication.
7. Finalize governance, reporting, and default resolutions for ongoing project management. Timeframe: 2-6 weeks after closing.

Disclaimer: Regulatory texts change. Always verify current requirements with local authorities and your chosen legal counsel in Maspalomas.