Due to tourism legislation, renting out in the Balearic Islands (Ibiza, Mallorca, Menorca, Formentera) is not always possible. Indeed, this legislation imposes strict rules on homeowners. Therefore, this article will explain more about the rental legislation in the Balearic Islands.
Caution: No new rental licences are possible in the Balearic Islands until 2026.
When is a tourist rental a actividad turística de estancias turísticas en viviendas?
You fall under tourism legislation as soon as you (1) rent out the entire property for (2) periods shorter than one month.
So you are not allowed to rent out rooms.
So unlike some other autonomous regions, you cannot use the common rental regime for periods shorter than one month.
For rental periods longer than one month, you can use the common rental regime. However, this is on condition that you do not use any marketing channels (canales de oferta turística), including rental companies and websites (e.g. bookings.com). Even if you make the property available to friends or family free of charge, you do not need a licence.
Read more about common rentals.
So, in practice, you are renting out a tourist property from when you enter into rental agreements shorter than one month. In that case, you will need to submit a rental licence request.
Categories of tourist accommodation
There are three categories that qualify as tourist property. First, you have the single-family houses or villas. The rental licences issued for single-family houses are valid indefinitely and allow you to rent out any day of the year.
The second category relates to the multi-family houses. Rental licences for this category are valid for five years, but renewable. Also, these properties are rentable throughout the year.
Finally, the third category consists of homes that function as family home or permanent residence. These are properties where the owner is domiciled there. The rental licence is also valid for 5 years and renewable, but one can only rent out this property for a maximum of 60 days per year.
Technical requirements
Main requirement for the property is having the certificate of conformity (Cédula de habitabilidad).
Other conditions are:
- there should be at least one bathroom for every four seats;
- the property must have been in use as residential property for at least five years;
- free of construction violations;
- individual meters for water, gas and electricity;
- epc attestation.
In addition, there are specific conditions per category of property and island.
Tourist areas
In a number of situations, your property will not qualify for a rental licence. For example, you will not be entitled to a letting licence if the property is located in a protected nature reserve or restricted zone (Planes de Intervención en Ámbitos Turísticos/Planes Territoriales Insulares). These zones can also set a maximum number of days of rentability.
Buy a rental licence?
A rental licence is based on the number of people that can stay in your property as stated in the property's certificate of conformity; the accommodation capacity. Based on the accommodation capacity, you can plazas/plaças buy from the responsible body of the island. In Mallorca, for example, this is the Consorcio Bolsa de Alojamientos Turísticos. The cost goes from around 300 euros to 4,200 euros per plaza, depending on the category and island.
You are required to buy as many plazas as the accommodation capacity allows. For example, if you have a property with capacity for 8 people, you will need 8 plazas.
The number of plazas available is fixed. In Ibiza, for example, this is 20,500. When there are no more plazas available, you cannot rent out tourist accommodation.
Renting out in the Balearic Islands: how do I apply for the rental licence?
The first step is to check whether the property meets all technical requirements. After that, you can check with the municipality whether the property is located in a suitable zone to rent out. You will then receive a Certificado municipal acreditativo. Next, you need to purchase the required number of plazas. Finally, you use the (electronic) form to request declaración responsable de inicio de la actividad turística your registration number, together with the declaration that your property meets all the requirements of tourism legislation (Modelo del plan de modernización y calidad either form Anexo 6).
From submission of these documents, you can start the rental activity.
You should clearly post the registration number at the property and mention it on all marketing channels used. Guests must be registered with the local police station. You also need insurance for bodily and property damage of guests for at least €300,000.
If you rent without a rental licence, you risk fines of €20,000 to €40,000.
You can rent out up to three properties.
Decision
If you are considering investing in the Balearic Islands, it is important to have the urban planning of the property checked. That way, before you purchase, you will know whether or not you will be able to rent it out.
