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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:

- Council certificate indicating the property sits on a holiday rental 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 a 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 If this authorisation was withdrawn, it would void the renting license, and the owner would have to stop marketing the holiday apartment immediately.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.

- Property equipment

The equipment of the property needs to meet at least the minimum requirement as established on annexe 6 from decreet 20/2015.

- 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.

- Number of bathrooms

The property needs to have at least a bathroom for every 4 places of occupancy.

- Residents who wish to rent their home up to 60 days a year

There is a new type of license that allows residents to rent their homes for up to 60 days a year. If you want to apply for this type of license, you will need to include in the application a certificate of residency issued by your council. The period of 60 days must be consecutive and set in advance. This type of license would also allow you to share a part of your home i.e: rent a room to visitors.

- 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. The final pricing per place of occupancy for villas, apartments and 60-day home residence lets will be 3500€, 875€ and 291,67€ respectively per place of occupancy.

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.

UPDATE 2019: We've been writing extensively about the current situation regarding renting licenses for holiday villas and apartments on this blog. Specifically, we've discussed the legal requirementsthe zoning project, the cost of application and published a guide about how to apply for a renting license.

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