Legalization of illegal constructions and relaxation of holiday rentals are planned

Legalization of illegal constructions and relaxation of holiday rentals are planned

The new government of the Balearic Islands is setting priorities: legalizing illegal construction and relaxing holiday rentals. Although concrete draft legislation is still pending, there are indications that these hot-button issues could soon be addressed.
In this article, we’ll take a look at the planned rule changes and timeline.

Legalization based on the 2014 model

The silver lining for many property owners and those who want to become one are the current discussions about the legalization of illegal buildings.
There are indications that the Balearic Islands government could build on the 2014 law, which allowed illegal construction to be legalized under certain conditions. Back then, owners had three years to legalize their illegal buildings. However, this “amnesty” was lifted after just one and a half years due to a change in government.
There are several reasons why the government wants to implement this measure quickly. One of them is that the situation has become untenable for owners and communities. Many illegal buildings cannot be demolished because they are protected. Approval procedures for renovations are impossible due to the unclear legal situation.
The new regulation could require buildings to become more energy efficient and installations that use less water could be required. However, more precise details are not yet known.
Experts expect that the law could be passed at the end of spring or beginning of summer, although the content is still being intensively discussed.

Moratorium on licenses could fall

The second issue concerns vacation rentals, which have been severely restricted by 2017 laws and the 2022 moratorium.
The Conservative government plans to ease some of these restrictions. The upper limit on the number of beds is therefore being raised. The island councils could also be left to decide how many licenses to issue in their areas.
However, it is unclear how radical these changes will be, as they need to take into account the interests of hoteliers, who, as experience has shown, are opposed to liberalization that is too generous.
It remains to be seen how the reforms will develop, but what is certain is that the government is working on these issues and more information will follow as it becomes available.

This article was created by the tax and legal firm PlattesGroup based in Palma de Mallorca.