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FindItFME
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- Dec 4, 2011
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El Gordo
Well-known member
Hola F
This has raised its head several times on this forum over the years, with news of prosecutions and fines of 30,000 Euros mentioned. There have been recent articles in the Talk of the North and other Balearic newspapers about fines up to 40,000 E just for advertising!
It looks as they are now targeting Lettings Companies who are letting out properties for owners without checking that they have the appropriate Licence!! that we all know is unavailable in Mallorca for private residential property.
I believe that even new Villas cannot get a licence in the current political climate where the hoteliers have such a voice and influence on the Government.
The Government seems to be pursuing all ways to raise money from often unsuspecting foreigners! It seems silly that the government are quite happy for you to pay income tax on your lettings income despite it being an illegal act!! Also seems silly that they charge a notional income tax (known as Renta on the mainland?) based on the value of your property despit ite being illegal to rent out!!!
It has also been suggested that the Government are matching up the records of owners visits to their electric usage to try and find those who are letting illegally.
Watch out and don't get denounced by your neighbours as has happened in the cases prosecuted so far!
F
FindItFME
New member
- Joined
- Dec 4, 2011
- Messages
- 5
Hi El Gordo,
I have heard of some incidents of this and I also know personally of some private owners who have been targeted by the "tourist police". Some of this comes from residents (all year) who are benefiting from the holiday home owner, paying into the community and only getting the benefit for a short period of the year. Then reporting the very people who are subsidizing their community charges because they rent to tourists.
With the possibility of a hotel workers strike this year, where will all the tourists go?
I wonder just how long before this is put into perspective and the hoteliers lose their domination of the laws of Mallorca. Think of all the revenue Mallorca could gain, from tax. Think of all the bars, restaurants, supermarkets and others, who will benefit from these holiday rentals. And pay higher tax's on this income.
I have heard of some incidents of this and I also know personally of some private owners who have been targeted by the "tourist police". Some of this comes from residents (all year) who are benefiting from the holiday home owner, paying into the community and only getting the benefit for a short period of the year. Then reporting the very people who are subsidizing their community charges because they rent to tourists.
With the possibility of a hotel workers strike this year, where will all the tourists go?
I wonder just how long before this is put into perspective and the hoteliers lose their domination of the laws of Mallorca. Think of all the revenue Mallorca could gain, from tax. Think of all the bars, restaurants, supermarkets and others, who will benefit from these holiday rentals. And pay higher tax's on this income.
