Holiday rentals in the Balearic Islands

The Decree 20/2015 of 17 April is the first tourism Regulation of the Balearic Islands and develops the Tourism Law 8/2012 of 19 July.

In terms of holiday rentals, which we will cover in this article, the mentioned Law included a very scarce regulation, which required an impending development.

The Decree increases the typology of residential buildings, always single-family homes, which can be commercialize as tourist or holiday homes. These are the following:

1.- Detached house. One house only in the plot.

2.- Row houses. One house only in the plot.

3.- Semi-detached house. Both properties in a same plot and under the regulations of the horizontal co-ownership regime. In this case, the co-ownership statutes mustn’t forbid the holiday rentals.

An analogous situation exists when two or more houses of traditional typology exist in one plot. This requires additional documents such as a certificate of habitability and a total cadastral plan.

In any case it is necessary to have a liability insurance in place, of at least 300,000 € and a maximum deductible of € 600 for the house.

The condition of not more than 6 bedrooms and one bathroom per each 3 people is maintained.

In order to ensure greater legal certainty, the Ministry of Tourism “Consellería de Turisme” will publish a list of the tourist distribution channels on its website. Although it is not a closed list if it includes a sales channel, it is a tourist distribution channel. In order to commercialize a holiday house on the mentioned route (webpages), you will need to have a tourism license.

The tourist rental is not the only way of carrying out short-term rentals, which are accepted by law. In fact, the Law 4/2013, on measures aiming to easing and market promotion of housing for rent, redefines the seasonal rental which wasn’t supported by the LAU (“Ley de Arrendamientos Urbanos” Urban Rental Law). So if a house or apartment is rented seasonally, and neither tourist services are offered yet published on a tourist (webpage) sales channel or commercialized as a holiday home, then this short term rental is covered by the LAU and applicable regulations.

Shouldn’t you currently be interested in renting out your property as holiday house , we can’t know how or when the applicable regulations are going to change. Therefore, we recommend to apply for licenses, as this license would represent an added value for the property at a later sale.

If you want us to check a specific case or help you to get the tourism license, you may feel free to contact us: nicole@mollmertens.com