The Law for the Balearic Holiday Rentals is delayed until the end of the year


Derecho Inmobiliario y cuestiones Fiscales

From our lawyers office in Mallorca and Ibiza we give you the latest news concerning the Project Law which will regulate the rentals of Holiday homes.

As informed under our section “Legal and planning update alter the change of government in the Balearic Islands”, published on the 6th July 2015, one of the new measures taken by the new Government concerning legislature will affect the Tourist Holiday Accommodation.

The proposal, made through a modification of the Balearic General Tourist Law, of the Holiday Rental Law in the Balearic Islands was planned for its approval this month of September 2016. However, it will not be processed through the Parliment until the next session (a period between September and December). Therefore, the vice president and conseller of Innovation, Investigation and Tourism of the Govern, Biel Barcelo, has informed that probably the law will not be effective until next year 2017 “due to the complexity of the matter”.

At present, Holiday rental in the Balearic Islands is legally in a grey area. The present Tourist Law does not include any regulation or Decree that regulates the Tourist Holiday Accommodation, but does regulate the rental of holiday accommodation in single family detached and semi-detached homes in its article 52. However, it excludes individual dwellings to be found in multi-family buildings or semi-detached under the system of commonhold property; that it, apartments.

You can consult our bloc at the entry “Bufete Frau can help you to register your tourist accommodation” where we provide you with the types of dwellings allowed for the tourist activity.

Additionally, in spite of the Tourist Law forbidding the rental of properties through tourist channels, the thousands of announcements flooding the platforms in this sector continue to enjoy impunity.

At the same time, the Law of Urban Rentals (LAU) also incluyes another alternative as this state law allows private people to carry out short rentals with offering tourist services, thereby avoiding any illegality. This way, a private person does not have to register in the Govern registry and avoids, at the same time, the payment of the eco-tax.

The holiday rental law wishes to establish a more strict control

The new Holiday rental law will regulate the upper limit of tourist beds including all the hotel and outside hotel offer. With these measures it is hoped to establish a stricter control and a better legal security concerning private Holiday rentals; an activity that, according to the Govern, has triplicated in the last two years.

This increase in the number of rentals and the lack of regulation has intensified the opposition of the Hotelier Association who see in the illegal Holiday rental a distortion of the competente and they urge the regulation of this situation including aspects such as the private owners being obliged, as well as the hoteliers, to inform the corresponding authorities about the change of guests.

On the other hand, the Association of Tourist Apartments (Aptur) regret that the activity of Holiday rental is not a priority for the Govern.

In Bufete Frau lawyers we are always pending any news in order to offer our clients all the update on legal, fiscal and planning matters.


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