Mogán City Council has taken a decisive step toward stimulating private investment in social housing. Lopesan plans to begin a rapid development pace this May on the subsidized housing development on Carmita Hernández Street, in the heart of Loma de Pino Seco. The project includes a four-story building that will house 59 apartments, with their respective parking spaces and storage rooms.
This practical example of public-private collaboration, with tax incentives and a social commitment, becomes a replicable model for other municipalities, like Mogán, that suffer the consequences of real estate and tourism pressures on access to primary housing. In addition to the project, the Mogán City Council is promoting the construction of another 259 social housing units on four municipally owned plots, reinforcing the institutional commitment to access to housing.
Mogán has approved the declaration of special municipal interest or utility for the construction of a 59-unit VPO building that the developer Lopesan will build in Loma de Pino Seco, in Arguineguín, which entails a 97,5% discount on the Tax on Construction, Installations, and Works (ICIO). This significant tax incentive, based on the ordinance regulating the ICIO, is broken down into a 95% discount for special interest—at the request of the developer and with prior approval by the Plenary—and an additional 50% for the project intended for protected housing.
The ICIO (Spanish Property Tax) in Mogán is taxed at 3,5% of the total construction budget. In this case, the developer would have faced a payment of €157.500, but thanks to the approved discounts, they will only pay €3.975,50, a saving of more than 97%. The City Council justifies this measure based on the housing emergency recognized in the Canary Islands by Decree-Law 1/2024, of February 19, which declares the urgent need to increase the stock of public and affordable housing. The construction of VPO (public or private) has a direct and positive social impact on the municipality, as the City Council emphasizes.
