Porta & Associates - the German law firm in Palma, presents the innovations in vacation rentals in Mallorca.
On February 11, 2022, the Balearic Islands government approved amendments to the Tourism Act by means of an emergency decree (Decreto Ley 3/2022). The government's approach was not very transparent. They met in a "secret" session on the morning of February 11, passed the amending law and it came into force the same day, without any transitional arrangements.
In addition to the changes to the Tourism Act, which we will explain elsewhere in our blog later, the big surprise was hidden in the first additional provision of the Amendment Act. Namely, it froze the bed spaces for hotels and vacation rentals.
This means that it is effectively no longer possible to apply for new tourism licenses, as this is linked to the acquisition of corresponding bed spaces.
The new moratorium is designed for a maximum period of four years, currently until February 11, 2026, during which time the Island Councils, in collaboration with the municipalities, must reassess the tourist load in each region of the Balearic Islands.
Applications for vacation rental licenses or purchase of bed spaces received prior to February 11, 2022 will continue to be processed.
The clear objective of this measure is to reduce the number of bed spaces in the tourist sector. In the near future, approximately 20,000 additional bed spaces, which were not originally released, should have come onto the market. This has now lapsed.
Furthermore, all bed spaces that are returned during this period will be confiscated by the bed space exchange and will not be reallocated. It will also no longer be possible to sell bed spaces privately, i.e. to transfer them from one vacation rental property to another. Even those who do not rent out their vacation property for a period of three years may lose their license. This will lead to an immense loss of bed spaces over the next few years.
Initially, there was particular confusion regarding the questions of whether the temporary vacation licenses for apartments, which must be renewed after five years, would no longer be renewed and whether properties with an existing vacation rental license including the license Sold could be renewed. This has now been clarified and we can breathe a sigh of relief. Nothing stands in the way of renewing the licenses, provided that all requirements for vacation rentals are still met at the time of the renewal.
renewal application to be fulfilled. Also, properties with existing licenses can continue to be transferred to a new owner without risking the loss of the license.
Likewise, it is possible to change the operator of the vacation rental license, as this does not affect the bed spaces.
If you need help with vacation rentals in Mallorca, contact the experienced team at Porta & Associates, the German lawyers in Mallorca.
