NEWS

STUDY CONCERNING THE LEGALITY IN THE BALEARES OF SHORT TERM RENTALS

28Oct

Derecho Inmobiliario y cuestiones Fiscales

From our lawyers office in the Baleares (enlace) we wish to offer you all the information concerning the rules of holiday rental

 Seasonal rentals and holiday rental 

 On many occasions one tends to confuse the concepts of seasonal and holiday rentals. However,  these are two different conceptions both in their rules as well as their characteristics.

 Seasonal rental is ruled by the Law of Urban Rentals (LAU) in its articles 3.2 and 4.3 where is applied the system of "different use to the dwelling". On the other hand holiday rental is not included in the LAU and is ruled by sectorial regulations.

 

In order that a rental not be subject to the regulation of the LAU and can be classified as holiday there should co-exist a series of requirements:

a) The hand over all of the dwelling, furnished and equipped in conditions of immediate use.

b) The process should have been negotiated or handled through tourist operators who have been paid for said services.

c) The hand over must be ruled by a specific regulation within a sectorial framework. If this regulated framework does not exist, then will be applied the legal system of standard rental appearing in the LAU.

  Conditions of tourist rental in the Baleares

 The Law 8/2012 of tourism in the Balearic Islands states the conditions or requirements that should be available in order to offer tourist accommodation in a dwelling.

  • Operators who can offer said dwellings:

The article 52 of the Tourist Law states that these operators can be private people or legal entities who market a single family detached or semi-detached dwelling and offer services of tourist accommodation that rotates with the private use following the regulations in the law.

 Excluded from this are all those dwellings located in multi-family buildings or semi-detached subject to the system of common hold property.

 However, these last can be rented for weeks or months based on seasonal rental appearing in the LAU as per its Articles 5.e, 28.3, 52.2 and 109.e. According to the Law 8/2012 they cannot be marketed through the channels of tourist offer.

  • Characteristics of the dwelling, services and equipment:

The single family detached or semi-detached dwelling, located both on urban and rural land, should have a maximum of six bedrooms and twelve beds and equipped with the minimum of one bathroom for each three beds.

 Additionally, the tourist operator must complete a declaration of the start of tourist activity for this as commercial use.

 As mentioned, the dwellings with multi-family characteristics are not included in this type of rentals and if this is carried out they would be subject to the corresponding fines as considered in the Law

 The rental of rooms within the same dwelling is also forbidden in this type of holiday rentals

 The dwelling object of holiday accommodation should have the following services and equipment:

  • Regular cleaning of the dwelling,   
  • Bed linen, linen, general household equipment and replacement of same.
  • Upkeep of the installations
  • Service of attention to the public in working hours.
  • Service of telephone assistance to the tourist or user of the tourist service during 24 hours.

On the other hand, seasonal rental should not include complementary services, be advertised nor marketed and does not have to be subject to a sectorial regional law.

 It should be mentioned that if, in spite of the dwelling being advertised or marketed through the channels of tourist offer and is subject to the specific system of its sectorial regulation, the complementary services mentioned above are not offered, the contract that is drawn up will continue to be under the legality and protection of the LAU or if applicable by the Civil Code.

  • Characteristics of the means of marketing of holiday rentals:                     

The holiday rentals can be handled or marketed both by the owner or through operators or by other means of tourist marketing.

Infringements of holiday rental

 It is considered as a serious offence in the case of non fulfilment of the sectorial regulation:

- The offer or the marketing of tourist accommodation in dwellings that do not comply with the requirements or the conditions established in the Law and its rule of development.

- Allow in a dwelling of your ownership the non-fulfilment of the requirements or the conditions established in the Law and the rule of development of the offer or the marketing of tourist accommodation.

In other words, the simple publicity of the rental of a dwelling forbidden under the Law 8/2012 already implies a punishable activity by the owner and, therefore, punishable by the Administration. This fact also affects the Internet webs with basis in collaborative consume, but whose end is essentially tourist.

The serious offences lead to an econonomic fine from 4.001 to 40.000 euros. However, it is possible that the inspection detects further offences.

 Many operators prefer to not offer complementary services. This way, before a possible inspection, the contract will be considered as civil and private and, therefore, subject to the LAU. It is essential to reflect this seasonal rental in a written contract accepted by both parties.

 Whereby, one should be cautious at the moment of  renting your dwelling in the summer season, taking extra precautions both through the channel of marketing as well as the type of marketing. The definition of the circumstances will depend on your seasonal rental being considered by the public administration as tourist accomodation in a dwelling.

 The prohibition of tourist rental in dwellings in multi-family buildings continues to a subject of disagreement and discussion. But, as we have mentioned, until a possible reform the present regulation forbids its marketing.

 You will find further information about holiday rental in “The law for holiday rental in the Baleares is postponed until the end of the year and in “The Govern draws up a temporary rule to put in order tourist rental.

 If you have any questions, please contact us in one of our offices:

Palma

Portals

Sóller

Ibiza

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