Guide to obtain a new renting license for villas and apartments in Mallorca

What is the DRIAT?

This declaration statement is a form you need to fill in to apply for a license. In full, it is the Declaració Responsable d’Inici d’Activitat Turística. The process of submitting this applies from the moment the zoning of the Consell de Mallorca and Ajuntament de Palma comes into force.

Definitions

a. Housing in a single-family building. In other words villas and townhouses that don’t share a space.

b. Housing in a multi-family building where there is shared access or facilities. In other words apartments with communities or houses that occupy some kind of shared ground.

These definitions help determine if the property can be commercialized, whether they are subject to the Horizontal Property law, and if it is subject to a five-year renewal.

Horizontal Property

As far as apartments (or properties that have some kind of communal element) are concerned, an agreement at a Community Owners’ meeting must be obtained. This means the majority of property owners within the building accept tourist rentals and this agreement must be registered at the Land Registry.

Main Residence or Year-Round Rental

You must go to the respective town hall to obtain a certificate confirming that the property in question is located in an applicable zone. This certificate will also specify what kind of tourism rental can be carried out: two months if this is your main residence, or year-round if not. Please note that you have 60 consecutive days but not both July and August. You could still choose June-July or August-September.

If the property is your main residence, you must also present the Certificado de Empadronamiento. The rental periods must be whole months and you must indicate which months you intend to rent. Any changes in the rental months must be communicated in the month of January.

Requirements

The home must meet these requirements:

  • Minimum age of five years at the time of application, during which its use has been private residential.
  • Cédula de habitabilidad (certificate of occupancy or the equivalent from the local council).
  • Energy certificate with an F qualification for buildings built prior to December 31, 2007 or D for subsequent buildings.
  • Individual water meter registered with the water supply company (unless it is not connected to mains water supply).
  • The home is not, and has not been, subjected to any kind of official protection (council housing).
  • At least one bathroom for every four places of occupancy.
  • The property must meet the minimum score of 70 in the list of requirements on Annex 6, a checklist document which you can get from your Spanish legal adviser.
  • An owner can have a maximum of three properties registered for tourism rentals.

Procedure, Stage 1, Consorci Borsa d’Allotjaments Turístics (CBAT)

Head to the CBAT (calle de Montenegro, 5, Palma) to purchase the tourist places (the total number of places, or beds, is already set on the certificate of occupancy or cédula de habitabilidad)

The beds have different prices depending on whether it is:

  • A house in a single-family building (ETV) costs €3,500 per place of occupancy.
  • A home in a multi-family building or subject to the horizontal property law (ETVPL) costs €875 per place.
  • A house in a single-family or multi-family building, which is listed as a Principal Residence and therefore rented for 2 months per year (ETV60) costs €291.67 per place.

Procedure, Stage 2, Form Submission and Accompanying Documents

You must submit your DRIAT form to the Direcció General de Turisme together with the following documentation:

Single-Family Building ETV

a. Formal document of the owner (copy of ID, NIE..).

b. Payment of the administrative fee (expected to be around €300)

c. Power of attorney (if applicable).

d. The completed checklist (Annex 6 of Decree 20/2015, of April 17)  with a minimum of 70 points.

e. Certificate from Local Council stating the applicable zone and the type of rental (indefinite or 2 months for principal residence).

f. Proof of purchase of tourist places at the CBAT.

g. Only in the exceptional cases of Single-Family homes being subject to horizontal property law (those that share plot or property elements with others), the statutes that state the Community Owners’ acceptance of tourist rentals (see point b below).

Multi-Family Building or Subdivided Property ETVPL

a. All previous documents as in Single-Family Building.

b. Título constitutivo or statutes from Community Owners’ Meeting that correspond to the horizontal property law and expressly permit tourist rental

Single- and Multi-Family Buildings for 2 Months per year

a. All previous documents as in Single-Family Building.

b. Títol constitutiu or statutes from Community Owners’ Meeting that correspond to the horizontal property law and expressly permit tourist rental

c. Certificate of registration (certificat d’empadronament) from the council indicating that the owner lives in the property.

Other Points

  • The tourist rental license will allow rentals for days or weeks for a maximum period of one month. In the cases of homes marketed under the Principal Residence Mode (ETV60) the owner’s coexistence with the clients is allowed. You cannot formalize contracts for rooms or match users who have entered into different contracts. Unless this is the Principal Residence (ETV60) and the owner is in the house when guests stay.
  • Tourist services must be offered. This means regular cleaning, bedding and towels, a supply of general household items, upkeep of the house, service during working hours.
  • All regulatory requirements related to business activity, including labour legislation if you have hired staff, and taxes have to be met.
  • You must send details of staying guests to the Guardia Civil or Policía Nacional.
  • Guests need to abide by the rules of the community and owners/representatives are responsible in clearly setting these out and obtaining the guests’ signed acknowledgement.
  • The license number of the property must be permanently published in all rental marketing. It must also be provided to the client at the beginning of the stay.
  • You must have an insurance policy in place that covers third-party liability for holiday rentals.
  • The houses located in the areas of fire risk prevention (check this with the local council) have to take the measures referred to in point 19 of Article 50 of Law 8/2012
  • Tourist Rentals in apartment blocks or homes subject to horizontal property laws, or in Principal Residence homes, is for a maximum of five years. The license can be renewed at the same cost.
  • If a building community decides to stop allowing holiday rentals, registered apartments will have to cease their activity within a year.

 

The information provided in this article is not intended to be legal advice but merely conveys general information related to tax and legal issues. If you are a property owner concerned about any of the information in this blog post, it is advisable that you speak with your Spanish tax advisor or accountant.

When to apply for a renting license and how much it will cost

For the past year, we’ve been writing about the current situation regarding renting licenses for holiday villas and apartments on our blog. Specifically, we’ve discussed the legal requirements, the zoning project. Today we are back with an update that helps shed some light on some of the points that need more clarification: when and how much will licenses cost.

Provisional date

The Mallorca Council has prepared a new zoning proposal after the feedback received from the different municipalities of the island, and now the Environmental Commission of the Balearics has a month to finalise their report. This report is expected to be approved in the parliament session on the 27th July, but then a period of 45 days will be open to receive feedback and meet up with several associations pushing the final application date to the end of September. In the case of the capital, Palma, it looks like it might take a few weeks more until the 1st August, as their zoning proposal was introduced at a later date.

Cost

The determined prices for each sector which include €875 per place of occupancy for apartments, €3.500 for townhouses and villas and €291,67 for those who choose to rent their home for up to 60 days. Find out more about the pricing here.

Top Activities for Kids Holidaying in Mallorca

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Image Credit: Mallorca Kiteboarding & SUP

Stand Up Paddleboarding

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-requisit 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.
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Image Credit: Coves de Campanet

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.

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Image Credit: Western Water Park

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.
PETER diving system
Image Credit: Action Sport 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 amoungst 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
Image Credit: Mallorca Kiteboarding & SUP

Kiteboarding, kitesurfing… whatever you call it, it’s a hit!

Kitesurfing isn’t just a hobby, it’s a way of life. It’s also a great 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 classes includes all equipment and accident & liability insurance. Josep gave it a go, you can read his experience here.

bike tour
Image Credit: 2GoCycling Pollensa

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 really test your stamina.
coasteering
Image Credit: Monaventura

Coasteering

Jump right in to 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.

Trail Running

We’re Mallorca-bound for Advanced Week 2015. All trails have been Tòfol-tested!Stay tuned & follow every step from the 29th March until the 4th April. #AdvancedWeek2015

Posted by Salomon Running on Friday, 13 March 2015

The flavour of this month is, not only panades, but it’s Trail Running. Seeing growing popularity over the past few years, Mallorca has been an increasingly popular destination to go running in.

In this video you can see Salomon runner Tòfol Castanyer during the #AdvancedWeek2015 running through the beautiful Serra Tramuntana.

Buying a Property in Mallorca

Buying process in Spain 
Once you have found the property you love, it is time for the paperwork. The property is selected and the terms agreed on. The property must then be secured. This can be done through private contracts between the two parties. It is customary that 10% of the purchase price is paid at this time. On completion a deed of conveyance ‘Escritura Pública’ must be signed by both parties under notary’s supervision in Spain.

Legal Advice in Spain 
It is advisable to appoint a local lawyer, who speaks the purchaser’s language who will carry out a title search, and advise the purchaser on all aspects of the investment.

NIE Numbers
All non-Spanish citizens require a personal identification and tax number to buy a property, referred to here in Spain as an NIE number. This can take some time (estimated between 3 and 6 weeks) so we recommend you apply early. Please note this does not affect your status in your home country. You can either apply for an NIE yourself at the Department of Extranjeros (Foreigners Department) ensuring you take your passport, or through your chosen legal advisor. Non EU applicants should contact their embassy for details of application.

Taxation in Spain
As a simple rule, when buying a property in Spain if you allow approximately 10%-12% on top of the asking price you will normally end up with some change in your pocket.  This will include Property Transfer Tax or VAT*, Notary and Land Registry fees, solicitor fees as well as any possible mortgage costs.

Property transfer tax & Stamp duty
On re-sales there is a property transfer tax set at on the following sliding scale:

Purchase price up to 400.000 € is 8%
Purchase price from 400.001€ to 600.000 € is 9%
Purchase price from 600.001€ and more is 10%

*Vat & Stamp duty
For first sale of newly built properties VAT is 10% and 1.2% Stamp duty.
For commercial property and first sale of a building plot, or a plot sold from a company Vat is 21% plus 1.2% Stamp duty

Registration 
The registration of the property is done by entering the deed of conveyance “Escritura Publica” at the land register office.

Completion
Completion can take place on whatever date you and the seller agree upon, from as little as one week (as long as you get the mortgage company to agree) up to one year if desired, from the date of signing the Option Contract. This date will be detailed in the Option Contract.

If the purchase is financed by a mortgage, the bank representatives will be present in order to authorise the new mortgage and pay the seller. If you are not able to attend on the specified date you are able to grant your solicitor/lawyer power of attorney so he or she can complete on your behalf.

Completion will take place between the relevant parties in front of the Notary who will witness the signing and transfer of the title deed or Escritura de Compraventa. The Notary acts for neither party specifically, but is a government official responsible for the execution of public documents; He/she will confirm the identity of both parties, and will check the Land Registry to verify legal ownership and that there are no out-standing debts or orders against the property.

The balance of the purchase price will be paid to the seller at this time, and any remaining purchase tax and fees will also be paid if going through a mortgage provider (if paying in full these taxes need only be paid within the month). The Escritura will then be registered by the lawyer in the corresponding Property Register. Once the Deed is signed you will be given the keys to your new property and a copy of the title deed, until the formal deed comes to you from the land registry (or via your Mortgage provider if they have acted on your behalf).

Congratulations! – it’s yours…home sweet home. Sit back and raise a glass of bubbly or two in celebration!

If you are interested in buying property in Mallorca and would like to speak to one of our sales team then we are happy to give any assistance you may require. Contact us

Palma de Mallorca comes up trumps

If you’ve been keeping an eye on the Sunday Times list of “best places to live” then you’ll have spotted Mallorca’s capital city Palma right at the number one spot. The city is filled with history and is a marvel to walk around the narrow streets taking in the beautiful architecture and shop in the boutiques. The city was voted top for it’s great restaurants, living standards and is just a short drive from the airport where there are regular flights to the UK. Mallorca is doing it’s best to shake off the party animal reputation is has due to the popularity of stag and hen parties going to Magaluf. The island has much more to offer from sports, art and culture, whatever your bag you’re sure to find it in Mallorca.

 

If that wasn’t reason enough, here are six reasons summarised by El Pais: Six reasons Palma is the best place to live (Spanish)

 

Easter time means panades in Mallorca

Spain in Easter time is steeped with tradition and religious festivities. What some people perhaps don’t know is that it’s also a time to make panades, an unmistakable Easter staple on the Mallorcan dining table. The origin of the humble panada is a bit blurry, some claiming it’s Jewish, others Muslim and of course it could also be Christian, what’s for certain is that nowadays it is tied in with the Christian festivities of Easter and the recipe includes lard and pork. Generally a large batch of panades is made and eaten during the Easter weekend and some frozen for later in the year, if they don’t get devoured first.
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The filling of peas, lamb and sobrassada
This simple meat pie takes advantage of the spring lambs, authentic Mallorcan sobrassada that was made during this winters matances and fresh garden peas. The making of panades is an event in itself with the ladies in the family getting together during the Easter weekend to roll out the pastry and fill the pies. Each town has their own style of hand raising the sides of the panada and curling the rim, with a keen eye one could tell in which town each pie was carefully created.
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Plenty of panades to make a full mornings work
The glory isn’t completely taken by the panada, it’s also a time to make crespeis and rubiols (my absolute favourite). Personally I think it’s a crying shame that the delicious rubiols are only made at Easter time as this is a sweet pastry I’d happily eat year round. The crespeis can be likened to a shortbread biscuit but softer and made with lard rather than butter. A rubiol is a half moon shaped parcel filled with either strawberry jam, pumpkin jam (angel hair) or chocolate spread. The strawberry jam ones are my favourites. Both are then sprinkled with a dusting of icing sugar.
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Rubiols
The best part about all this is getting together with the family to indulge in a pie or two. If you’d like to try to make them yourself, here’s a basic recipe.
Difficulty: medium
Time: 40 minutes in the oven plus prep
Yields: 11 panades
250g of lard
150ml oil
300ml water
1kg of flour
400g lamb, diced
sobrassada (enough to have a little in each pie but not too much)
peas (as many as you like)
In a bowl, mix together the lard, oil, water and flour and add a dash of salt. Mix together until it forms a soft dough.
In a separate bowl, mix together the diced lamb, sobrassada and peas.
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Take about a golf ball size of dough in your hand and roll it into a ball. Gently push it flat and start to work the sides up to form a casing for the filling.
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Add enough filling to reach the top of the sides. Take slightly less dough to make the lid. Roll it flat and cut with a knife to make it round. Top the panada and press together the sides and lid of the pie together.
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If you want to make two types, panades with peas and some without, pop a pea on top of the ones that have peas inside to tell the difference. Remember that when making pastry cold hands are always best.
Put the panades on a baking tray covered in aluminium foil so the base doesn’t burn. Put in a pre-heated oven for 40 minutes at 200ºC.
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Leave the panades until they’ve cooled and then enjoy!
If you don’t have time to make them yourself then fear not, they are available in all bakeries and supermarkets across the island.
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Kiteboarding School Chronicles – Part I

Mallorca is a great place to live all year around. Some people may not be so fond of the winter time as the temperature drops and many towns like ours, Port de Pollença, seem to go into hibernation. It is definitely really quiet but I like to think of it as a well deserved rest after a busy summer. Last year and for the first time ever I decided to give snowboarding a chance and I thoroughly enjoyed it, so much so that I regret not getting to go more often. It was after my last holiday to Andorra, earlier this year that I started getting jealous of the people who live in the mainland and have the ability to hop in their cars and a few hours later arrive to a ski resort. Although we had a short chance to practice snowsports in Mallorca this is definitely not the best base for weekend snowboarding getaways.

While driving back home from the airport after that holiday, along the road between Alcudia and Port de Pollença, I was greeted with a swarm of kites in the air, it wasn’t something new, we are used to seeing them in the bay all the time, but it struck me as a revelation: here’s this action sport that looks just as fun as snowboarding literally on my doorstep. Nothing seems to stop the people enjoying Kiteboarding, it was mid January, it doesn’t get much colder than this but they still seemed to have a blast in spite of the weather. I automatically remembered of Mallorca Kiteboarding & SUP, a young company that introduced themselves to our team last year offering their kiteboarding courses and paddle boarding excursions.

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This was my instructor and co-founder of Mallorca Kiteboarding & SUP

Before unpacking my bags I looked for the contact details of Pedro Álvarez (aka Perico), co-founder of Mallorca Kiteboarding & SUP who also happens to be a very talented guitarist, and I asked him to sign me up to their waiting list.

After a few weeks of not so ideal conditions for a learner I got a call from Perico and scheduled my first lesson, I freed-up a bunch of hours from the calendar and the morning after I met up with him to get started.

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Hopefully they’ll be a photo of me like this in a few weeks time. For now, here’s another photo of Perico, the pro

One of the obvious requirements for kiteboarding is the wind and in the Pollença bay in particular we aren’t short of it. The other side of the coin is that if the water is cold on a winter’s day, the constant breeze does not help you warm up! In all honesty, I have never been much of a beach person and it is very unlikely that I’d get into the sea anytime before July but I was excited, so excited that I went into the water in March without much hesitation (with a wetsuit, obviously).
Before I dipped my first to into the water, we spent about an hour going through all the equipment and all the security protocol. In this sport you are dealing with two great forces of nature: wind and sea, so all the great explanations I received from Perico were actually very helpful. From an early stage I felt confident that I was controlling the kite rather than the kite controlling me – kind off, it was only my first day, I still have a lot left to learn!
The very important thing to understand is the wind windows. Understanding this is critical for managing the power of the kite and the direction of traveling. After this we covered the all important hand signals to communicate with other kiters to maintain order and safety and also to learn the rules and etiquette when kiting.
Getting closer and closer to actually going out onto the water, I was also encouraged to set up the whole rig, starting with inflating the kite, inspecting and untangling the lines and attaching everything to my harness properly.
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Learning my lines, almost ready for the water.
 
Once it was all ready it was time to get into the water, which didn’t actually feel that cold with my two wetsuits on. We actually had a lovely sunny day and it felt great temperature wise. I can’t wait to try this in the summer with less neoprene on!
It is not advised to learn to fly a full size kitesurfing kite on a beach – as this is the most dangerous place to do so. You need to head out into the water at a safe location to learn.
In the water I was taught how to pilot the kite, launch and landing, relaunching it in the water as well as powering and depowering the kite which enables the kite lines to let go of pressure,  decreasing the speed of your kite.
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Up, up and away!
Feeling the force of the wind pulling you can be a bit daunting at first but once you start to understand how the control bar works and how sensitive it is, you start enjoying the experience. It was fun to see the 14m2 kite being steered from one side of the wind window to the other.
It might not be as simple as other action sports and it might take a bit longer to get you on a board but with all the good tips and support I received from Mallorca Kiteboarding & SUP, they made it is as easy as it can possibly get. Knowing whats next; body dragging, waterstarting, steering/reaching the board, etc… it makes me really look forward to my next lesson.
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Stay tuned for part II!
Josep Sebastián
Director of Prestige Villas

Let’s try kiteboarding!

It’s not all doom and gloom in the Prestige Villas office, although it never is, but today is a particular highlight – Josep is off to try out kiteboarding with the guys from Mallorca Kitebaording & SUP. Here’s his first glimpse of the waves that await him. More updates and photos to follow!

More reasons to visit Barcelona

One of Spain’s biggest tourist locations, Barcelona, was graced with magnificent views on Monday morning. The ‘back bone of Mallorca’ the UNESCO World Heritage sight Serra Tramuntana. This image was taken by the Observatory Fabra Alfons Puertas and such a view can only be seen in certain weather conditions. With good visibility, no clouds and low light in Barcelona were exactly what made this view possible. The stretch of Mediterranean sea that separates Barcelona and Mallorca is 206 kilometres.