Posted on 19 April 2017
Rather than leaving your holiday home in the sun empty and gathering dust while you’re back in Britain, renting it out is an obvious way of generating a handy additional income. But you’ll need to make sure you abide by the local rental laws before you can welcome your first guests.
Property owners in the Balearic Islands face new laws on renting out their properties to tourists. The new law is intended to address the problem whereby local workers cannot afford the rent being charged to tourists, forcing them to live further and further away from their places of work.
Provided a home owner complies with all the elements required in the new law, then he or she can rent out to tourists. Here is a guide to the proposals:
- Apartment owners will need to get the permission of the owner’s Community before they will receive a tourist rental licence.
- Short-term holiday rentals will be confined to certain designated tourist areas.
- No licences will be given to properties which are less than 10 years old.
- Each of the four islands will have a fixed number of properties available to rent. Once that number is reached, there will be no new licences granted. However, licences could be bought or sold.
- All licences will need to be renew every five years.
- The current maximum penalty threshold will be increased to €40,000.
- Properties located on protected rural land will no longer receive licences.
What will this mean for property owners?
You will be able to rent out your property providing you do not offer any kind of tourist service, such as cleaning or babysitting, and you comply with each of the proposed requirements – with licences being granted under these conditions. It does mean that a large number of holiday lets could become illegal, but this is nothing new in the Balearics or indeed on the Spanish mainland.
What will this mean for property buyers?
The local regional government has decided that affordable housing must now be of utmost importance, since many locals who work in the tourist industry – the lifeblood of the islands – cannot afford to live there. Good news for British buyers too, with an influx of affordable property coming onto the market and the option for long-term rental while you choose your permanent home.
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