First sanctions on holiday rentals

Last April, the Balearic Islands Tourism Agency Board initiated the Inspection Plan for the accommodation offer focusing its efforts on controlling advertising and illegal commercial offer of holiday rentals in private housing.

With this, the offers published on the Internet are specifically controlled by verifying data that points to an activity outside of the tourism regulations. In addition, the Balearic Islands Government announced joint actions with other public administration offices, such as the national and regional Tax Agencies.

As a result, the first holiday rental inspection campaign in the Balearic Islands produced sanctioning actions to eight real estate companies with fines for commercially offering illegal holiday rentals.

The current tourism law prohibits the sale of touristic stays in dwellings located in residential buildings and at the same time it modifies the rental regulation considering the possibility of offering touristic stays in residential buildings, if a series of requirements are met and whenever it is done in the authorised areas.

And the fact is that the Balearic Islands are beating all records of visits recorded to date. Hospitality companies and holiday rentals search engines reflect a 90% occupancy until October. The same happens with licensed holiday rentals, where the average price for overnight stays doesn’t go lower than 800 euros.


To deal with the above, in July a new law will change the holiday rentals to tourists in the islands and it will contemplate the following stages:

  • The properties that are already registered with the Tourism Agency may continue to be rented as before, complying with the same rules and maintaining the same sanctioning regime.
  • The apartments located in residential buildings will still not be able to be rented to tourists or commercially offered through touristic channels.
  • The apartments located in residential buildings whose owners want to rent legally should wait for the zoning and also meet the requirements set by the new law.
  • Villas or semi-detached villas can be rented to tourists, if meeting minimum requirements and if obtaining an authorisation from the Tourist Agency in advance. With the new law, the owner must present a document from his city council that proves that his property is located in an area authorised for holiday This process is the same that must be done for apartments located in residential buildings.

Faced with this type of situation, we recommend that you always search for the help of legal experts on holiday rental and completely legal local companies so that you can make use of your villa or holiday rental apartment with total peace of mind and confidence.


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