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10 Jan 2017

Why the new law will affect your rentals

Tags: holiday villas, information, tourism,

Holiday rental: zoning proposal in Mallorca

The Consell de Mallorca presented last Friday 19th of January the zoning proposal for holiday rentals. It is very important to bear in mind that it is a mere proposal, subject to a period of public exposure and its contents can change after the claims, objections and meetings that will take place. The final zoning is expected to be adopted during the month of June.

Residential villas that are marketed with touristic license contribute a significant part to the island economy. According to the records from September 2017, Mallorca has about 40.000 beds in registered holiday rental properties. Furthermore, there are about 45.000 beds currently under application, and approximately 11.000 are expected to initiate the process soon, once the zonification will be definitive.

Until this zoning is officially approved, we must remember that the only properties that can advertise holiday stays are the ones that obtained a license or have requested one before the 1st of August 2017. 

Excluding Palma, that being the Capital will decide its own zoning, Mallorca has been divided into 7 areas

 

 

Zone 1: coastal tourist saturated areas (red)

Palmanova, Magaluf, Santa Ponça, Paguera, Bellavista, Cala Blava, Son Veri Nou and el Arenal de Llucmajor. 

Residential single-family housings and apartments located in these areas, may be marketed as holiday stays for 60 days a year; it should be remembered that the owner wanting to exercise such activity must have his habitual residence in such housing or in case of apartments, must obtain also the authorization by the owners’ community.

 

Zone 2: the rest of interior areas (orange)

The content is defined by exclusion from the previous zone that includes for instance PUerto de Sóller, Sant Elm, Costa d´en Blanes, Portals Nous, Illetas, Cala Vinyes, Puerto de Andratx, Camp de Mar, EL Toro, Costa de la Calma, Portals Vells, Sa Torre, Bahía Grande, El Dorado, Bahía Azul, Cala Pi, Vallgornera, S' Estanyol, Ses Covetes, La Rápita, Colonia de Sant Jordi, Cala Santanyí, Cala Llombards, Cala Figuera, Cala Mondragó, Portopetro, Cala d´Or, Cala Ferrera, Cala Marçal, Portocolom Portocolom, Cala Murada, Es Domingos, Calas de Mallorca, S´Estany d'Es mas, Cala Mendia, Cala Anguila, S´Illot, Porto Cristo, Sa Coma, Cala Millor, Cala Bona, Port Vell, Costa dels Pins, Canyamel, Font de Sa Cala, Cala Ratjada, Cala Mesquida, Betlem, Colonia de Sant Pere, Son Serra de Marina, Can Picafort, Playa de Muro, Puerto de Alcudia, Puerto de Pollensa, Bonaire, Es Barcarés, Formentor, Cala Sant Vicenç…

Residential single-family housings and apartments located in these areas, may be only be marketed as holiday stays for 60 days a year; it should be remembered that the owner wanting to exercise such activity must have his habitual residence in such housing or in case of apartments, must obtain the authorization by the owners’ community. On the one hand, residential single-family housings and apartments may be marketed as holiday stays year-round, being required in case of the apartment the authorization of the owners.

 

Zone 3: interior areas with increased tourist pressure (purple)

ALCUDIA, RANDA, ARIANY, BANYALBUFAR, PORT DES CANONGE, ORIENT, ULLARÓ, DEIÁ, LLUCALCARI, SA CALA, S´EMPELTADA, SES COVES, S´ESGLEIETA, ESTELLENCS, ES CARRITXÓ, FORNALUTX, MARRATXINET, POLLENÇA, ES VILÁ, LA FONT, SANTANYÍ, LLOMBARDS, RUBERTS, SES SALINES, SOLLER, BINIARAIX, L´HORTA, VALLDEMOSA, ES PORT, S´ARXIDUC and SON FERRANDELL.

Residential single-family housings and apartments located in these areas may only be marketed as holiday stays for 60 days a year; it should be remembered that the owner wanting to exercise such activity must have his habitual residence in such housing or in case of apartments, must obtain the authorization by the owners’ community.

 

Zone 4: the  rest of interior areas (blue)

The content is defined by exclusion from the previous zone;  it includes among others Llucmajor, S' Arracó, Andratx, CAPDELLÁ, CALVIÁ, GALILEA, SON SERRALTA,  PUIGPUNYENT, Esporles, Bunyola, PALMANYOLA, SA COMA, SANTA MARÍA, SA CABANA, PONT D´INCA, PLA DE NA TESA, Portol, Consell, Binissalem, Biniamar, Lloseta, Mancor, Selva, Inca, CAIMARI, SA POBLA, ALARÓ, MARRATXÍ, Lluc, BÚGER, SENCELLES, SANTA EUGENIA, COSTITX, LLORET, Pina, Algaida, Montuiri, Manacor, SANT LLORENÇ, SON SERVERA, ARTÀ, Capdepera, SANTA MARGALIDA, Petra, VILAFRANCA, SANT JOAN, MURO… 

Residential single-family housings and apartments located in these areas, may be marketed as holiday stays for 60 days a year; it should be remembered that the owner wanting to exercise such activity must have his habitual residence in such housing or in case of apartments, must obtain the authorization by the owners’ community.  Also, tourist stays may be marketed throughout the year for both the single-family residences and apartments, being in this second case, always required the authorization of the owners.

 

Zone 5: protected rural land (green)

This land consists of natural areas of essential interest and high level of protection (AANP), natural areas of special interest (ANEI), rural areas of scenic interest (ARIP), the areas of risk prevention (APR) and the protected territorial areas (APT)

In these areas NO TOURIST STAYS can be marketed under the protection of Balearic Tourism Law 

 

Zone 6: common rustic land (yellow)

This zone is defined by exclusion from the previous zone.

Residential single-family housings and apartments located in these areas, may only be marketed as holiday stays for 60 days a year; it should be remembered that the owner wanting to exercise such activity must have his habitual residence in such housing or in case of apartments, must obtain the authorization by the owners’ community. Also, tourist stays may be marketed throughout the year ONLY IN SINGLE-FAMILY RESIDENCES and therefore it is forbidden to do so in apartments if they are built on such land.

 

Zone 7: excluded areas (grey)

Industrial estates and an area of airport easement next to the airport of Sont Sant Joan.

One last clarification regarding zones 1, 2, 3, 4 and 6: as there is a missing regulatory development of the Law, it is not known whether the abovementioned 60 days is a continuous period or can be extended during the year.

 

SUMMARY GRAPHIC:

Proposed draft law for the modification of Law 8/2012, of 19 July, on tourism in the Balearic Islands

The Balearic Government has recently made public the draft of the preliminary law amending Law 8/2012, of July 19, on tourism in the Balearic Islands, regarding the commercialization of tourist stays for public exhibition and sent a copy of the same to the main associations of the sector.
While the Hotel Business Federation of Mallorca  (FEHM) has considered insufficient the documentation received to issue its assessment, from the association of tourist apartments (Aptur Baleares) have already qualified the regulation as very improved.

It is a text in the preparatory phase that is open to debate, which implies that, until it is ratified as a law, it may be modified. Even so, it offers an overview of the guidelines that the Government of the Balearic Islands intends to implement in this regard.

It’s unquestionable that the regulation of the offer of holiday rental in any of its forms and variants is totally necessary. It is an activity that has grown in an extraordinary way in a few years stimulated by the great demand produced of this form of tourism. The tourist rental attracts a type of visitor who usually has a purchasing power above average and more predisposed to integration in the reality that has chosen Mallorca to rest. This is also important not to neglect it and also give legal protection.

The main objectives to be achieved with the new regulation are basically three:

 1) Avoid the tourist saturation, establishing a real roof of tourist beds.

 2) Regulate tourist rental in multi-family buildings and improve current regulations.

3) Ensuring access to housing, trying to solve the problem of reducing the supply of rental apartments for residents as well as rising rents.

What's new in the new proposal of law:

-          The exceptions are deleted in the exchange of places that had so far, everyone who wants to open a tourist establishment or commercialize tourist stays in a home must purchase the places in the corresponding insular bag, provided there are available.

-          In the case of multi-family housing, tourist places will be acquired for a term of 5 years renewable, provided the residential area in question is considered suitable for the marketing of tourist stays.

-          New commercialization of tourist stays in houses located on rustic land will be prohibited.

-          The web pages that commercialize tourist stays can only announce those houses that are registered legally.

-          Constructions, both single-family and multi-family, must have a minimum age of 10 years.

What does the main entities involved say about it?

The Hotel Business Federation of Mallorca: The FEHM president emphasizes the importance of the regulation of holiday rental proposed by the Government, while it has asked the Ministry of Tourism to conclude and provide the entities involved with the study of regulatory impact.

Association of Apartments and Houses for Holiday Rental of the Balearic Islands, Aptur: From this association consider a serious mistake that the Govern Balear bets to maintain the ceiling of squares that currently exists in the draft +of the Law of Tourism relative to the commercialization of the tourist houses. They consider that this measure does not give an answer to the reality of the tourist market, by leaving out of the legality about 50% of the current offer of holiday rental.
Among the positive aspects also presented by the draft Law, Aptur Baleares emphasizes Article 19, which will oblige the tenants to inform in writing about the basic rules of coexistence, and the proper use of services in the case of multi-family properties.
In the same way, the association supports the need to incorporate the tourist registration number of the dwelling in any publicity that takes place of this one. They also support the requirement that any home can be used for holiday purposes until I have done ten years, as it may be thus possible to combat property speculation.

In this last week, Palma City Council, together with the University of the Balearic Islands (UIB), are carrying out different studies in order to determine the areas where tourist rental will be allowed in multi-family homes and in which they won’t be.
It’s intended to have the first conclusions of these studies in the middle of next January, when it is anticipated to carry out a first working table in order to analyze different aspects of the autonomic regulation that leaves in the hands of the City Council zoning of the city to effects of holiday rental.

Given the data presented, it remains to wait for modifications and ratings of the law to meet objectives and final regulations.

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