Renting your Ibiza villa out in 2018?
Ibiza is well-known for being extremely relaxed with almost any rule or law. However, the Balearic States have started to tighten up their attitude towards private villa rental. If you plan on renting your property out, you may be unaware of recent changes and forthcoming alterations to the Tourist Licence laws for villa rental.
In the past, many property owners just simply advertised their property on popular holiday platforms like AirNnB. They let the bookings roll in and kept the full income. The biggest issue with this was that the local Government were missing out on Taxable Income. However, the need to manage properties that can be rented out goes much deeper than just loss of taxes. The hotels put pressure on the Government to create some form of legislation as they were losing out to private property owners.
In particular, they competed directly with apartments. The Government wanted some form of control over the quality of accommodation provided, so they legislated that a property owner must have a Tourist Licence before they are able to take in paying guests for their property.
What do you need, to gain a Tourist Licence?
There are many elements to qualification. In brief, you can only apply for a Tourist Licence if you have a detached property that is for a single family. (They allow up to 12 people sleeping / 6 bedrooms). The property must meet a basic list of criteria that guarantees a good experience for the holiday tenant. This may include air conditioning, fire safety equipment and the number of bathrooms in relation to bedrooms.
However, an area that is less understood involves geographic “Zones”. The Balearic States allow local Municipalities to decide on Zones that would be suitable for Tourist Licences to be granted. If your property is not within the Zone, you have almost no chance of successful application. If your property is outside the Zone, but you already have a Tourist Licence, there’s a good chance that you will be able to continue with the Licence.
Applying for a Tourist Licence
In the past, all you had to do was simply make an application for one. The local Government were so far behind, it could take two years for them to come and inspect the property as part of the application. While you waited, you were allowed to rent the property out.
However, in July 2017, the Government made a moratorium on all Tourist Licence applications. We are told that this will last for at least a year. So, if you are looking to buy a property in Ibiza, then you may want to consider buying a home that already has a licence if the rental income is important to you.
It’s worth saying that you can still rent your property to “family and friends” without a licence. Just don’t advertise it on rental sites!
What is likely to happen in 2018?
The legislation is in a period of revision at the moment. AirBnB have met with the Tourism Ministry for further clarification on what we all need to plan for. It is rumoured that it may be possible for owners of detached properties, within the new Zones, to rent their properties for up to 60 days each year.
We will all have to wait until August 2018 to hear if the moratorium will be lifted before we can set out a plan. However, our suggestion is to seek good legal advice if you already own a property, or intend to buy in Ibiza.
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