Property owners face sanctions over illegal holiday lets

Up until the end of October this year the government received 176 “denuncias” regarding alleged transgressions of this type. Of the 59 cases none has yet resulted in a fine, as the tourism minister, Biel Barceló, has explained in response to a question from the Partido Popular parliamentary deputy, Alvaro Gijón.

Breaking the figures down, there were 55 denuncias during the six months to June when Jaime Martínez of the PP was still tourism minister and a resultant 22 proceedings. From July, this figure shot up - to 121 denuncias and 37 proceedings.

Under the islands’ tourism legislation, the commercialisation of properties is permitted so long as they are not in so-called “plurifamiliar” buildings, i.e. apartment blocks. These apartments can be rented but only under the national urban leases act (often referred to as the tenancy act), but commercialisation via expressly tourist websites is not allowed. The legal uncertainty caused by all this has produced complaints from the hotel sector. It considers the practice to be unfair competition. But it has also caused uncertainty for property owners who wish to rent out accommodation and are fully prepared to pay any tax that is due.   

The government is at present considering changes that would be introduced under a reformed tourism law. There is expected to be, therefore, some form of regulation which establishes criteria to permit commercialisation and also any restrictions.