Tax incentive for long-term rental

Peter is correct. There are many bars and restaurants that were packed out all this summer serving quality fresh genuinely home-made food on quality crockery with new tablecloths, authentic branded drinks in new clean attractive glasses, and in modernised locals with new bathrooms etc. Those that will not invest in their businesses this way will naturally fall by the wayside just the same as any other quality resort. This is the way forward, and although there may be a hiata in the short-term, we will all benefit in the long term. Notwithstanding, tha comments made below by steve are also correct. Frozen sub-standard microwaved rubbish food and inferior drinks on old and decrepid furniture need to disappear. We are privelidged to be be living on the Pearl of the Mediterranean.

How it affects businesses depends on the sort of people that they have for customers really. There are many tourists that eat and drink out of the hotels, and don't count the pennies, even if they're all-inclusive. For some years Mallorca has needed to go up-market, as it's far more expensive to buy property here, and far superior to the mainland costas in many ways. It's also smaller of course, and should be going for quality instead of quality. Many small businesses are run-down and not innovative in modernising and have not changed with the times at all for years. These will suffer in the process. You need to be wealthy and professional to start and run a business here, something which is alsi sadly lacking, and with their quality of foodstuff and products very poor.

Dean. It dosint help you or anyone with a small business. Helps only hotels. Hotel prices are up for next year . The few apartments that are for short term lets have also put prices up so I suppose it helps them. Ghost towns on the way. They must think inland winter income will cover the shortfall.

How does this help local bars and businesses? Will be keeping mine empty.

This article is a joke. Firstly, insurance costs have always been tax deductable. Secondly the conditions required for this kind of insurance are completely prohibitive, that's why nobody has it of course. Thirdly, it would take much more than 300 euros a year to make up the difference between tourist rentals to long term rentals, even without counting the costs incurred making the inevitable repairs to damages and decorations caused by the tenants. This article is merely a failed attempt to try to show some advantage to landlords suffering from the new, temporary we hope, tourist rental laws dreamed up by the pro-hotelero Biel Barceló, who hopefully will be unemployed soon.

I see a situation were a number of parties will seek to benefit from this "incentive". Most tenants will know their landlords have insurance for non payment of rent - result is why not get the insurance companies to pay the rent and just not pay. Equally the Insurance companies will know that there is 300 euro to assist with cost of insurance and may just up their prices. The end result is the only people who will be paying is the government and this will add no new properties to the long term rental pool. Why not spend the money on building or buying Social Housing for locals, that is a better long term solution for all involved.

It's happening. Goodbye tourists. Hello people who are not going to spend same amount of cash in local businesses. Goodbye small businesses.