Renting License Requirements

A current trending and a much-debated topic of conversation right now is the regulations surrounding renting licenses in the Balearic Islands. Take note that before now, owners who wished to rent their property to tourists had to have a permit to do so. Apartments did not, however, comply with the guidelines to get a license and therefore were rented unregistered. Villas could apply and obtain a licence, called an ETV, at the local tourism authorities.

Right now, however, there has been a freeze on granting licenses until 1st August 2018, at the latest. Once this moratorium has been lifted, both apartments and villas alike will be able to apply for a permit, providing they comply with the strict stipulations listed below:

– Must be in an approved zone
Just recently 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 presented the provisional zoning project for holiday rentals. You can see more about that in our previous blog post by clicking here.

– Cédula de habitabilidad / Certificate of Occupancy
Spanish law requires this document to control H&S conditions in any dwelling. This also dictates the maximum occupancy of the property.

– Age of building
The building needs to be at least five years old.

– Certificado Energético / Energy Certificate
With a scale from A to G. The law requires at least D for buildings finished after 2008 and F for older ones.

– Water meter
Every house or apartment must have an independent water meter as opposed to shared communal meter.

– Building community authorisation
The majority of neighbours in a community must authorise vacation rentals. This is a sticky point, as these associations change, the stance of the neighbours can change over time. If this authorisation was withdrawn, it would void the renting license, and the owner would have to stop marketing the holiday apartment immediately.

– Insurance
A comprehensive holiday rental insurance with third-party liability coverage of at least 300,000€.

– Data collection
All guests need to be dully logged with the Spanish National Police.

– License limit
There is a limit of 3-holiday properties per owner and sorely individuals as opposed to businesses or corporations.

– Length of the license
5 years after which the permit needs to be renewed. There are rumours that this limit will only apply to apartments whereas townhouses and holiday villas will not need to renew their licenses.

– Beds / places
The beds or places of occupancy must be purchased from an island-wide stock shared with the hotels. At the moment there are around 42,000 beds available in this stock. There has been a lot of speculation regarding the price, however, this has not been announced yet.

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.

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