[Danny]

Can anyone give me some advice re the new law in the Balearics regarding having to have a rental licence to rent to tourist. It seems the law changed in July and no further applications are to be processed and apartments will never be issued and so illegal. Apparently high fines will be put into place. Is this true? Can the fines be enforced? How does this law effect allowing friends and family to use for the cost price? WOuld this be considered letting?

I wonder how this might effect the property market especially as so many bought and rent to fund a mortgage. Will apartments decrease in value while villas with licences increase? Hard to know but the implications on so many is huge. So many rely on tourism for their income.

I have heard on another forum that there is a phone line so people can report their neighbour – lovely! This is disastrous if true. Anyone know anymore on this subject. My friends have often used my place giving me money to cover the cleaner and laundry -is that renting?

[Calamajor]

All commercial holiday rentals of apartments without a licence are illegal since August 1, 2017. Owners can be fined up to 40,000 euros.
Sites such as Homeaway, Airbnb, etc which advertise apartments without licence can be fined up to 400,000 euros.

E-mail to report suspected illegal renting (not anonymously):

bustiainspeccioturisme@dgoturis.caib.es

No new licences will be issued in the next 12+ months.

In the future new licences may be issued:
– if apartments are 10+ years (maybe 5+ years, both figures circulate)
– if communities don’t ban apartments from being rented (simple majority). You can’t get a licence without the permission from the community.
– if the apartment is in an area that isn’t banned from holiday rentals

Rentals 6+ months aren’t included in this ban.
Obviously it was illegal to rent out without a licence before Aug. 1, 2017, but authorities had difficulties enforcing that law. That’s why it changed.

Family using the apartment isn’t commercial holiday rental.

Information mainly from Majorcadailybulletin.com

[Author]

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