Not unexpectedly, Madrid is taking a look at the Balearic holiday rentals' legislation. The ministry for economic affairs had in fact advised the Balearic government in May that certain provisions in the law could be unconstitutional. It has three months to decide whether or not to lodge an appeal on the grounds that the legislation invades national law and contradicts European directives.
The ministry specifically referred to potential conflict with law on the operation of the internal market. The Balearic legislation was proposing provisions that would considerably hinder the marketing of certain types of accommodation. The effect, the ministry warned, would be the penalising of these classes of accommodation and the consequent impact in terms of competition and the overall tourism supply.
There was some modification as a result. Madrid had drawn attention to restrictive criteria, such as the supply of utilities to properties. Nevertheless, the law states, inter alia, that in properties for tourist commercialisation there have to be individual water meters registered with local water companies.
The ministry also has issues with the concept of zoning for tourist accommodation places and with licences only being valid for five years. The Balearic government was told to communicate these issues to the European Commission, something which hasn't been done.
If there is an appeal to the Constitutional Court, the legislation will be suspended for five months. At the end of that period, the court will have to decide whether to permanently suspend aspects of the legislation or not.
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Well if the vote is anything to go by it looks like the island has just lost half its tourist next year, such a shame it has only just started to pick up in some areas and all we will have is all inclusive hotels looks it's going to be a place of empty and derelict bars and restaraunts again !
Thank you for your reply.Obviously to remain nameless, solicitors need facts and previous judgements to give infallible advice, none of which exist at the moment.Nontheless my opinion is that he is being ultracautious with the advise he has given you so far.If the family you state are the ones who will be coming here, I very much doubt, indeed I would put money on it, that you will be bothered in the slighest.Don't forget tourist rentals are those that are advertised in agencies or webs and are for LESS than 30 days. You will own the property and with their passports, your wife and children can easliy identify themselves, I think both you and your solicitor will be amazed how those with agile minds will legally get around this new law in 2018.
Richard -in answer to your question family being my son and his fiancée, my daughter and her friend , my parents my wife’s parents.... point is it doesn’t matter - they will be viewed as ‘tourists’ I might add the lawyer is one of the most respected property lawyers in Mallorca - but will remain nameless.My guess is this is exactly the reaction the government is looking for, as honestly I can’t see anyone outside of locals, residents or retirees now buying apartments. Shame there will be no visitors to fill the restaurants and bars!It’s also interesting to watch on the estate agent websites at all of the new listings appearing in the last few days , however my guess is there will be no buyers! I’m out.
Accordong to today's newspapers, Barcelona's town hall have taken over 6.000 property owners to court for not adhering to the new short term rental regulations that have recently been applied in that city.
JDW22, what do you (and your solicitor) define as family ? Also I would politely suggest that your solicitor should have advised you with more consideration and perhaps more thoughtfullness. Like medical advice, get a second opinion.
After 10 straight years of holidays in Mallorca add me to the count of many that are now saying this is a step too far. I was half way through the purchase of an apartment for myself and my family to use. Only to be told today by my lawyer that nothing is clear and there's no guarantee that we won't be 'denounced' and fined even in the case of family who will be viewed as 'touristic' and impossible to prove otherwise. Too much sorry! That's already several thousand Euro a year and a nice hefty sum of property purchase tax that Spain will now not see. I foresee a property price crash in the Balearics!
Then why, may I ask, are places like London, Paris, Berlin, Amsterdam and Barcelona, to name the more important ones, applying the same rules and regulations ?
@Barceló. You may need to order a new cheque book for when the compensation claims start pouring in .....
So is there a law in force or not ? The whole rental law thing was ludicrous to start how can anyone stop you renting your home if you declare the income and pay the the tax on the profit. Most apartments are a holiday home that rent in the weeks the owners are not here so would never long term rent, so why would contribute to a housing shortage just another excuse to wreck the tourist industry and the local bars and restaurants that rely on exactly the rental tourists because the all inclusive tourist spend very little if anything !
I am really starting to wonder if our government seeks any legal advice before they implement laws. If the legislation invades national law and contradicts European directives, why would it become law? Surely you dot your i's and cross your t's before you implement a law. So much back-tracking and one wonders why?