Holiday Rental Zoning Project in Mallorca

The president of the Consell de Mallorca, Miquel Ensenyat, the councillor of Land and Infrastructure, Mercedes Garrido and the councillor of Economic Affairs, Cosme Bonet have presented today the provisional zoning project for holiday rentals. This proposal is currently under public exposition until the 12th of March.

Licensed holiday villas constitute a significant part of the island economy. According to the records from September 2017, Mallorca has 40,073 beds in registered holiday rental properties. Furthermore, there are 45,149 beds currently under application, and approximately 11,000 are expected to initiate the process soon.

Last year the Govern Balear approved a new renting law affecting the Balearics and a one-year moratorium until the 1st of August for the different Island Councils and the Ajuntament de Palma to determine in which areas holiday rentals will be allowed. We wrote about this law extensively in our blog post, and you can read about it here.

Until this zoning is officially approved, possibly as early as next week, only licensed properties like those available on our website PrestigeVillas.com can be advertised.

This authority is planning to initially allow holiday rentals in villas and apartments up to 60 days a year in so-called “saturated” towns, initially limited to Palmanova, Magaluf, Santa Ponça and Peguera.

Other declared saturated towns will be:

  • Alcúdia
  • Randa (Algaida)
  • Ariany
  • Banyalbufar
  • Port des Canonge (Banyalbufar)
  • Orient (Bunyola)
  • Ullaró (Campanet)
  • Deià
  • Llucalcari (Deià)
  • Sa Cala (Deià)
  • S’Empeltada (Deià)
  • Ses Coves (Deià)
  • S’Esglaieta (Esporles)
  • Estellencs
  • Es Carritxó (Felanitx)
  • Fornalutx
  • Marratxinet (Marratxí)
  • Pollença
  • Es Vilà (Pollença)
  • La Font (Pollença)
  • Santanyí
  • Llombards (Santanyí)
  • Ruberts (Sencelles)
  • Ses Salines
  • Sóller
  • Biniaraix (Sóller)
  • L’Horta (Sóller)
  • Valldemossa
  • Es Port (Valldemossa)
  • S’Arxiduc (Valldemossa)
  • Son Ferrandell (Valldemossa)

In inland protected areas no rental licenses will be allowed.

According to Ensenyat “Holiday rentals are not a problem. There are areas where holiday rentals help support the local economy of Mallorca. By this zoning project, we intend to identify where these rentals become a problem to limit them and in which places they contribute to the local economy. We intend to find social as well as ecological balance.

Councillor Garrido explained earlier today that “by this zoning project we are outlining what we want to protect. We do not want to overexploit our water resources or turn our towns into theme parks.

This proposal is also wanting to assist the residents finding affordable housing options. Finally, councillor Bonet has appointed that “holiday rentals, especially when in inland towns, have granted an opportunity to the residents to have access to share a part of the wealth coming from tourism that had never been accessible to them before. Very often we see visitors that decide to repeat and wish to know better the area.

Our team at Prestige Villas will keep a close eye on upcoming news regarding the holiday rental legislation. Keep up to date by subscribing to our newsletter: click here.

Christmas Traditions in Mallorca

24th December – Nochebuena / Nit de Nadal
Christmas Eve is one of the most celebrated evenings in the Christmas calendar across Mallorca. Traditionally many people will come together for an evening mass at the church and listen to ‘Cant de la Sibil·la’ (The Song of the Sibyl) declared a Masterpiece of the Oral and Intangible Heritage of Humanity by UNESCO on 2010. This Gregorian chant is a Christmas classic, and it is quite an honour to be chosen to sing it. After the evening mass is over, that’s when the really good bit starts. People like to head home with the family, or to a bar, and indulge in a mug of hot chocolate so thick you need a glass of water to chase it down. This is accompanied by some kind of sweet delights such as ensaïmades as pictured above, or possibly even bunyols or churros.

25th December – Navidad / Nadal
Christmas day has, in more recent times, been the families day of choice to share gifts, although this is a fairly new tradition. Some families prefer to wait until the Three Kings to make sure the children stay well behaved over the holiday period. Gift giving aside, Christmas is a day to be together with the family and enjoy a big hearty lunch which can last pretty much all day. Again there are a few classic dishes which crop up in each household. For example sopa de Nadal – a broth with huge pieces of shall pasta stuffed with mince. The main course is usually a suckling pig in most houses. For dessert, there’s always a plethora of turrons of all kinds as well as another cheeky ensaïmada, coca de patata, wafers or the like. Although there are lights and a festive feel around town, the island doesn’t go mad for Christmas trees, that’s not a tradition here, although you will see that some people have adopted it. Around town, you may see quite a few Santas on ladders hanging from peoples balconies. What most people will be interested in is seeing the nativity display set up in the town council building, Cort, in Palma. The model city of Palma is transformed into a Christmas nativity scene with all the authentic Mallorcan traditions dotted around. Gentleman playing cards around a table, girls folk dancing, chickens and farm animals, orange orchards and of course in the middle are the well-known nativity characters.

31st December – Nochevieja / Cap d’any
There are a few traditions around this time in terms of good luck charms and superstitions but one of the main ones is the twelve grapes. During each chime of the bell it’s a race to eat all twelve grapes, once chime at a time. Each grape represents luck and good fortune during the coming year. It may not seem like much of a challenge but the grapes here are huge and still have the seeds in, so by the sixth one it’s pretty difficult to keep going. This is where you can spot the experienced and locals amongst your group.

5th January – Cabalgata de Reyes / Els Reis d’Orient
If you haven’t shared gifts already on Christmas day then excitement at this point is tantamount, and children across the island are brimming with excitement for the arrival of the three Kings (wise men). Towns all over the island will host a parade whereby the three kings will throw out sweeties and some parents may have dropped off gifts to be handed out to their children by the Kings. It’s a very vibrant and bright parade, but it doesn’t beat the smile on the faces of the little ones as they excitedly arrive home to see what the Kings have delivered to them. It’s tonight that most families share gifts, although some do hold off until lunch tomorrow.

6th January – Epifanía del Señor’ / Dia de Reis
This is generally celebrated with a family lunch although the menu can vary in each household. One thing for sure though, there’ll be a roscón de reyes. A ring-shaped pastry decorated with colourful candied fruit and topped with a cardboard crown. Hidden inside are a bean and a King figurine. The lucky one to get the King gets to put on the crown for the day and the unlucky one to receive a bean must buy next years roscón.

Lluna de la Font, new luxury villa to rent in Pollensa

Just outside of Pollença town is la Font, a small residential area built on the hillside offering the properties that sit there an elevated view of the countryside and landscape of North Mallorca.

Among those houses is Lluna de la Font, a new property that we are featuring for the 2018 season. Located right at the end of a cul de sac, the way the villa was designed means that neighbours do not overlook it and you can enjoy the utmost privacy and tranquillity.

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Complementing the high-quality construction is traditional Mallorcan architectural features such as stone walls and beams throughout the interiors. The interior of the house is elegant with a modern feel to it, full of natural light, warmth and beautiful open plan spaces.

The outside has a classic rough stone façade and plenty of terraced areas to sit and relax.That said, the real beauty of this villa lies in the views and many spacious outdoor areas surrounding the house. The main terrace is a suntrap, and with a long 14m saltwater pool it’s easy to cool off in the hot summer sun.

The property is excellent for larger groups and is fully functioning with a very well equipped, tried and tested kitchen. If you’re more of an outdoor chef, there’s a gas BBQ and a BBQ built into the rocks.

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The villa has four bright bedrooms and is perfect for 8 guests. Changeovers are on a Friday at this property, and there are plenty of weeks available throughout the season. It’s a great property at any time of year.

To see more photos or to enquire, take a look at our website by clicking here.

Collaboration with Stand Up To Cancer

We’re excited to be working with Cancer Research UK this year in their charity auction run by Stand Up To Cancer.

This year is the ninth ‘Sound & Vision’ event, which is an intimate immersive event held at Abbey Road Studios with this year’s theme being early 80s. Celebrating the birthplace of New Romantic scene and the explosion of club culture. Gary Kemp is the Event Patron and Boy George is the confirmed headline performer.

Sound & Vision was launched by the late Sir George Martin in the year 2006. Since it’s inception, it has raised over £1m for Cancer Research UK.

As part of Cancer Research UK’s Stand Up To Cancer campaign, Sound & Vision will be recreating the two Soho clubs that were the birthplace of the New Romantic scene – the Blitz and the Wag. Where Spandau Ballet, Boy George and Duran Duran were all regulars and the strict door policy meant only the creme to la creme of the 80’s club scene were granted entry.

Stand Up to Cancer will be running an auction during the event. One of the lots is a 7-night stay at one of our properties in North Mallorca. The highest bidder will have the opportunity to stay in one of a choice of four properties that sleep between 8 and 10 guests.

Other luxury prizes are on offer will be a selection of incredible rock and roll art and photography, luxury prizes and money can’t buy experiences.

New law for holiday rental apartments in Mallorca

In recent years, villas and townhouses have had it easy to obtain renting licenses whereas apartments, on the other hand, have not been allowed to apply for a renting license for the last two decades.

A way round this used to be the “Ley de Arrendamientos Urbanos”, sometimes referred to the tenancy act in English as this law does not set a minimum length of a let. Many owners and agencies were legitimately using this law for apartment rentals. As long as those properties were not advertised as being “holiday apartments” and no additional services were being provided i.e. cleaning, assistance phone, etc., and a lease contract was signed, they were within the law.

Recently, the Balearic Parliament has approved a new holiday rentals’ legislation. In addition to regulating the commercialisation of tourist accommodation, a real ceiling has been placed on the number of beds available in the islands. A balanced solution has been sought between the coexistence of residents and tourists and addressing housing needs.

According to the Government, this new ceiling of beds is meant to tackle the unlimited growth of tourist accommodation capacity of the Balearics. Whereas owners of holiday rentals such as villas or townhouses which are already licensed will be unaffected by the new bill, there is now a one-year moratorium on new permits for new holiday rental properties. The local councils and the town hall in Palma will use this period to determine which zones will be allowed to register new holiday rentals’ beds.

There will also be a new restriction to limit the number of properties that one owner can market: no more than three. Additionally, any property that applies for a new license will have to be at least five years old.

The legislation creates new ways for prosecuting illegal supply by establishing a clear definition of the channels through which holiday accommodation is offered, and requires that a tourism license number is displayed on any advertisements. There’s even an email address so you can denounce your neighbours.

Furthermore, any property to be let for under thirty days will be deemed to be a holiday rental and therefore subject to all the relevant provisions in the legislation. This is the Government’s way of closing the tenancy act loophole on short-term rentals that are in fact for holiday purposes.

Any listing without license number will be deemed to be illegal, leaving websites and landlords liable to hefty fines – ranging from 20,000 to 40,000 euros for owners and up to 400,000 euros for agencies and portals. The Ministry of Tourism has set up an email for residents to denounce other owners who rent their apartments.

The legislation makes provision for the holiday rental of a “habitual dwelling” for a maximum of sixty days a year. This applies to both apartments and houses. These dwellings would still be subject to the zoning.

Our team at Prestige Villas will keep a close eye on upcoming news regarding the holiday rental legislation. Keep up to date by subscribing to our newsletter: click here. If you have any questions about the new law, feel free to contact us, we are here to help.

Goodbye Roaming Charges!

You may have heard the news already that roaming charges within the EU will be abolished, as of today – yippee!

Although some networks are already offering roaming free contracts, that’s not the case for everyone nor the case across all countries so this European law will be welcome news for many.

The new law means that EU phones will be able to call, text and browse within the EU without incurring the hefty charges and it will just be as if you are in your home country.

This law has been a long time in the making, as the EU have been negotiating with the mobile phone networks for ten years to get this agreement. One warning from the mobile phone networks was that this would only push prices higher to take out your phone contract in the first place, regardless of if you intend on going abroad.

Although a statement was released saying:
“The EU has managed to find the right balance between the end of roaming charges and the need to keep domestic mobile packages competitive and attractive,”

“Operators have had two years to prepare for the end of roaming charges, and we are confident that they will seize the opportunities the new rules bring to the benefit of their customers.”

One word of warning though, if you exceed your contract limit then you will be charged, just like you would at home. So if you’ve not got all you can eat data, then watch how much you use up while abroad as anything beyond your contract could be pricey.

This spells the end of needing to go place to place to find a wifi hotspot. Roam free and roam far!

La Coma – family villa for rent in Pollença, North Mallorca

If you’ve been on our rentals website, I’m sure La Coma would have been one of the listings that stood out. Just a short distance into Pollença old town, the villa is so well located that if you fancy you could easily walk into town for dinner in the evening, or even hire bikes and ride into town whenever you like. Split across two floors; the villa can conveniently accommodate two families travelling together or a large family. 

As you walk in, you’ll find a large covered terrace with views right across the Colonya Valley. Whenever we’ve met with our guests staying here, they always comment on how wonderful it is to see the sky lit up with a blanket of stars and just how many you’re able to observe from this property.

If it’s entertainment for the children you’re thinking about when holidaying in Mallorca, then be rest assured that the children will be plenty entertained here. If it’s outdoor activities they like then there’s ping pong, a large field to play football in or of course the swimming pool. During the hotter hours of the day and for a bit of downtime then there’s always the chance to catch up on the latest things on the Apple TV or DVD collection.

Get to know it, see our virtual tour here:

Virtual Tour La Coma
Have a digital walk through and get to know the place. Click here to go on a virtual tour.

 

The villa is rented in the peak season months from June – September. If you are looking for a property to sleep ten guests, then we highly recommend giving this one a look.

It’s not just us that raves about it, check out a review from some guests last year:

“Thank you, Prestige Villas, for our relaxing week at La Coma. We knew from the moment we arrived the holiday would be everything you promised. We were greeted with a thoughtful welcome pack and great information booklet that explained all the necessary things about the house, plus useful information about the local area with restaurant recommendations as well as other places to visit in Mallorca. The villa was clean and comfortable. It had obviously been recently decorated and we really liked the relaxed, personal style of the villa. There was all the necessary equipment in the kitchen and it was of the best quality you could have expected from this type of rental property. The exterior of the villa was lovely. There is a lot of outdoor space, with an excellent pool and plenty of shaded areas on the terraces. The villa is in a quiet area and the views are great, excellent for star gazing at night! We had BBQ´s for dinner on most of the nights and decided to use the brick BBQ. Although it was tucked away from the views of the mountains, it was very good. There was also a smaller portable BBQ that could have been moved into a position to enjoy the views. An unexpected bonus for us was to find there was lots of toys for children a kitchen, tent, table and chairs, jigsaws, DVD´s etc. which our three year old loved! The villa was easy to find and very close to Pollenca. Although it would be possible to walk to town, I would not recommend it as the roads are quite narrow. It also only took us about 5 minutes to drive to two decent size supermarkets and 10 minutes to drive to the beach. We loved our holiday here and could not have asked for anything more. I would certainly recommend this villa to families and larger groups. There is lots of space, plenty of parking, and the separate annex by the pool is very private.”

Duplex Maria – apartment for sale in Puerto Pollensa

Duplex apartment located in the residential area of Boquer, just 150 metres from the Pinewalk and the beach of Puerto Pollensa. It is a very quiet and comfortable community either for living during all year round or to spend the holidays, with a fabulous community pool.

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The property is facing east; it is very bright and sunny during the middle hours of the day. It is built on two levels: ground floor and first floor and is distributed as follows: on the ground floor, there is the kitchen, a toilet, laundry room and living room/dining area, with access to the terrace and private little garden.

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On the top floor, there are the bedrooms and two bathrooms (one is en-suite).

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Equipped with aluminium exterior finishings, ceramic tiles, pine woodwork and wardrobes, hot/cold air conditioning.

Build area: 95sqm

Bedrooms: 2 double, 1 single

Bathrooms: 2 full, 1 guest WC

Community swimming pool, AC, built-in wardrobes

Price: 278.000 €

 

See more on our website and enquire.

Family Activities in Mallorca

Stand Up Paddle-boarding

This is something the whole family can enjoy and doesn’t take a long time to learn. The flat seas are beautiful to paddle about on and take a tour of the Mallorcan coastline. There is no pre-requisite learning necessary, but a good balance and coordination can help a lot during the first 10 minutes before getting into the swing of things. There are plenty of schools out there, but the best has got to be Mallorca Kiteboarding & SUP who offer fun and exciting excursions that all the family can enjoy. They offer lessons to both complete beginners and advanced, learning the key skills to become a paddle surfer.

Image credit: cuevasdeldrach.com

Caves

Coves de Campanet – At the bottom of the Sant Miquel hill in the Tramuntana Mountain Range are the Coves de Campanet caves. A much more modest attraction than the Coves de Drach, they’re still well worth a visit. There is a guided tour of the caves which lasts 40 minutes and takes you along pathways through the caves where you can see small ponds and impressive stalagmites and stalactites. The different chambers inside the caves are known as Sala Romántica, Sala de Llac and Castell Encantat.

Coves del Drach – Discover the Eastern coast of Mallorca and head to the most famous caves located in Puerto Cristo. Extending for almost 2,500m and including internal heights of 25m above the cave floor. The caves are said to have formed from seawater pushing through the rocks to form a vast opening that is thought to have happened in the Miocene period (between 23 and 5 million years ago). There are four caves, all of which connect to each other, Black Cave, White Cave, Cave of Luis Salvador and Cave of the French. Hidden within the caves is Lake Martel, considered to be one of the largest subterranean lakes in the World, (170m long and 30m wide) on which there are daily performances of classical music featuring pieces by Caballero, Chopin and Offenbach.

Water parks

There’s no better way to cool down in the hot sun than having fun in the water. There are several water parks in Mallorca and Western Water Park is one of the best, over in Magaluf. With dive shows and entertainment throughout the day, the rides here are great with a variety of different slides to suit all the family.

Image credit: Actionsport Mallorca

PETER diving system

The ideal bridge between snorkelling and scuba diving. PETER Diving is suitable for all the family and takes you to ideal diving conditions for beginners. It’s a great way to see underwater ecosystems without the rigmarole of scuba. It’s a definite hit amongst youngsters with the age requirement being only 8 years old. The divers at Actionsport Mallorca in Port de Pollença are all qualified, and you’ll be sure to have a fun day out.

Kiteboarding

Kitesurfing isn’t just a hobby, it’s a way of life. It’s also an excellent way to get the teens entertained in a course to learn one of the hottest sports on offer in Mallorca. With a constant warm wind blowing between 10 – 15 knots and shallow water, North Mallorca is the place to learn. The instructors at Mallorca Kiteboarding & SUP are all qualified by the Spanish Sailing Federation, IKO, WDWS and Spanish Surf Federation so if you take a class with them; you’ll be in good hands. The price of courses includes all equipment and accident & liability insurance. Josep gave it a go; you can read his experience here.

Image credit: 2GoCycling

Bike Tours

One of the best ways to sample the island is by bike. The island has been growing in popularity with cyclists coming from all over Europe. You can either rent a bike and go it alone or join a fantastic bike tour which you can combine with kayaking or local markets and also there is a tour on mountain bikes to test your stamina.

Coasteering

Jump right into the blue Med on a Coasteering adventure in North Mallorca. Cliff jumping is obviously an activity you want to do with a guide who knows the safest places to go and the best spots. It’s an activity suitable for all abilities just so long as you have an adventurous side about you. Other actives that can be thrown into the mix include abseiling, zip lining, snorkelling and swimming. Practice Coasteering in Mallorca is the best way of combining sea and mountains, as we’ll follow the seaside shoreline as we discover the most hidden corners of the island.

Kayaking

Whether you’re in a single or a double kayak, it’s great fun to paddle about the water in the North. An open sea kayak is a less intimidating way to enjoy the water than something like a canoe. If you’ve got the desire to try something with a guide, then there is a super instructor here in Puerto Pollensa with vast knowledge of the best kayaking spots for all levels.

Hiking

There are plenty of great hiking route around Mallorca but one easy route is the Puig de Maria outside of Pollença. It’s a short 40-minute walk along a path with lovely views at the top. It’s worth going early or late, but not during the heat of the day.

Tax Guide for Non-Resident Property Owners in Spain 2016

Management of Non-resident Taxes

 

Income Tax

As non resident in Spain and owner of a property you are liable to the non residents income tax. This tax is paid once a year. You pay it before the end of the current year for the previous one (in 2016 you will pay for financial year 2015). The amount due is calculated on the cadastral value of your property. This amount is the result of applying a 19.5% on the 1.1% of the assessed value.

Cadastral Value x 19.5% x 1.1%

Please note that if you rent your property you also have to declare this income but instead of declaring this income once a year you will have to declare it quarterly. The amount to declare is the entire amount received from the tenant, without deducting any costs*.

*Nevertheless, as we are dealing with taxpayers resident in another European Union member state, the expenses described in the Law on Personal Income Tax (IRPF) can be deducted when calculating the taxable base, as long as proof is provided that these expenses are directly related to income earned in Spain and have a direct economic connection that is inseparable from the activity carried out in Spain.

  • Income accrued in 2014: 24.75%
  • Income accrued in 2015: 19.5%

 

Wealth Tax

Wealth Tax has been re-established temporarily for tax years 2011, 2012, 2013, 2014 and 2015, accruing on 31 December of each of these years. Wealth tax is an annual tax, payable on the total value of your taxable assets as at 31st December. If you are resident in Spain you are liable to the tax on your worldwide assets; if non-resident, then only on your Spanish assets.

Tax base: The current tax-free allowance for non-residents is 700,000 €

Obligation to declare: All taxpayers with a positive tax liability are obliged to file a tax return.

 

Local Taxes for Property Owners

Local yearly Property Tax: The Impuesto sobre Bienes Inmuebles (known as IBI) is fixed by the local authorities ayuntamiento), depending on both the value of the land and of the property itself. This tax is paid yearly (before the end of November), and you can go to the local tax office and pay it directly when you receive the yearly notice in your postbox, or you can arrange an automatically debit from a Spanish bank account (the best option if you do not live permanently in Spain).

Local yearly rates: House-owners in Spain are also required to pay yearly rates, which is a contribution to street lighting, maintenance of facilities and rubbish collection. The yearly amount again depends on the area and is paid to the local council.

 

This text was written by the offices of Alfonso Benavides Y Asoc. S.L.

 

Find out More:

If you would like further information regarding this information, contact Alfonso Benavides Y Asoc. S.L. by email.