Making Sense of the Tourist License Changes
Last month, Illeslex in conjunction with Pollentia Rentals ran an event in English to explain the implications and rules around the new tourist license. So much has been said and so little of it in English, that this breakdown of everything we need to know should come in extra handy.
The new law is an amendment to the 8/2012 Act of Tourism in the Balearics. It relates to the commercialization of tourist stays in residential homes. The plan is to cap the number of licenses at 623,624 beds across Mallorca and Ibiza (including hotels).
In a Nutshell:
- Licenses issued after 1 August 2018 will need to be renewed every 5 years for multi-family homes – this will be via direct debit and reasonably straight forward)
- Buildings that are less than 5 years old are not eligible for tourist licenses under the new law
- License numbers need to be provided on any adverts (websites, portals etc) and in the property’s information pack
- You can be fined between 4,000 and 40,000€ for advertising or renting a property that does not have a rental license, this includes renting it to friends or family.
- One property owner can only get a maximum of three tourist licenses
- Passport copies for every guest staying in properties must be shared with the General Directorate of Police (details are to be released re. how this is done)
- Tourist services must be offered to clients
- Guests can only stay for a maximum of 1 month
- Extra beds for children under 12 years old are not allowed.
1 August 2017 – the deadline for applying for a tourist license under the previous system
Early 2018 – when local Balearic councils should announce the zones in which you can be eligible for a tourist license. AND the number of licenses that will be issued in that area (known as PIAT)
1 August 2018 – the next date you can apply for a tourist license for your property.
NEW rules for community blocks and multi-family homes...
If the community statutes prohibit holiday rentals then individual owners cannot apply for a license.
If the majority share of owners authorize tourist rentals, then all owners in the block can in theory apply for a tourist license. This agreement must be registered in the land registry.
The community agreement can be changed at any time and this automatically entails the obligation to cease the housing tourist marketing.
Properties must have individual water, gas and electricity meters (i.e. communal meters are not permitted).
Written details of the community’s rules and the tourist registration housing number must be given to guests.
A 24-hour contact number for the owner’s community must
be provided for assistance.
NEW rules for owners renting their primary residence...
A primary residence can be rented for a maximum of 60 days under the new law.
The license fee will be lower for primary residence rentals.
If you already have a tourist license or applied before 1 August 2017
If you already have a license or applied before the 1 August 2017 deadline then you have retained all rights and can continue to operate as normal.
The new rules do not apply retroactively.
If the property is your primary residence the new 60-day rule does NOT apply.
You won’t be able to get a license if…
Your property is on protected rural land
Your property is state-subsidized or price-controlled (social housing)
Houses with serious or very serious infringements (i.e. fines pending)
You have more than 3 rental properties (maximum three tourist licenses per owner)
License applications – what you will need
- Current Certificate of habitability
- Comply with the specified rules of sustainability and accessibility for dwellings
- An energy performance certificate
- Civil Responsibility insurance
- Proof of ownership, ID documents and proof of tax payment as part of the application process
- Complete a DRIAT questionnaire (as with previous license applications) and meet enough of the criteria
Applications will probably be processed on a first come, first served basis. For help with your license application www.pollentiarentals.com and they can point you in the right direction. For legal issues relating to licenses contact www.illeslex.com.