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Property Owners Support Group

  • Thread starter Thread starter Papillon
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Has anyone been charged with breaking this new law yet? If so what was their punishment?

Joey it isn't a new law as such, it's just that the authorities have turned a blind eye in the past. The hoteliers are now putting pressure on the government so they have been sending out inspectors and threatening to fine those who rent their apartments illegally.
 
After reading Papillions Guide to Spanish Taxation and the ever lengthening of this thread, I'm rather glad I am just the punter who pays the apartment rental, has a great holiday in one of the nicest places in the Med and goes home with happy memories, which hopefully will keep up our spirits till it all starts again next year.
So the question is, if the Authorities do begin enforcing all these rules and regulations will it have an immediate effect on the availability and cost of self catering accommodation? Has anyone got an educated guess how many rental apartments are in residential only areas and what percentage of people renting properties haven't been paying the correct tax and in future will have to. Both of these queries surely will have an effect on availability and cost going forward.
 
Very worrying, this situation will have a huge impact on the cost and availability of renting an apartment. If all renters of apts are doing so illegally then surely a huge proportion will have to stop! Hope this just dies a death and normal service is resumed.
Saw statistics today from Majorca paper which stated that 41% (approx) of tourists visiting Majorca stay in rented accommodation. This is a large number, so even if the people who normally rent change to a hotel, there wouldn't be enough rooms available. It just doesn't make sense to me, other than the collection of fines to help with the national debt.

Alternatively, licences should be granted to apts in addition to villas. However an owner would be quite justified in passing the cost on to their clients. Oh dear! Those of us who love PP and try to visit every few months will find it awkward, let alone the poor owners.
 
Can anyone tell me how the figure of 42.7% is arrived at in terms of those staying in illegal apartments? It seems a very precise statistic for a sector of the tourist economy or, is it a government guesstimate?
 
Is this a ray of hope...fingers crossed everyone.

This from the UH here with Google translationEl Govern abre la vía del diálogo para buscar un acuerdo con los apartamentos turísticos » Local » Noticias » Ultima Hora Mallorca

The Government opened the path of dialogue to seek an agreement with the tourist apartments.
The Government has opened an avenue for dialogue with consells insular, municipalities and FELIB to discuss in depth all the problems raised with tourist rental apartments and houses located in apartment buildings, a situation that currently is prohibited by the Act Islands Tourism .
The Minister of Tourism, Carlos Slim, will meet tomorrow with representatives of consells, FELIB and municipalities affected Islands. From the Ministry of Tourism pointed out yesterday that "it is a meeting to hear the general feeling and obtain all the necessary information. What could happen then, is a question that we still can not figure out. "
Dialogue
The decision of the Ministry of Tourism opens a new framework for action in this complex issue, as the Tourism Act leaves no room whatsoever for the tourism marketing in multifamily buildings.
The Government, with the unanimous rejection surrounding this regulation and the economic impact that this may generate in all tourist areas and homeowners, has chosen the path of dialogue in order to find a loophole to regularize this activity tourism, as has happened so far in Catalonia or Valencia.
The pressures has received the Government and the Party itself in Balears, has changed the strategy planned in the beginning, because instead of confrontation with the other sectors, is to now find a legal device that allows the marketing of this type of tourism that has been occurring in the islands since the beginning of the "tourist boom" in the 60s.
The property managers are asked to regularize everything about tourism services and marketing portals.
 
One wonders whether the Hoteliers, by forcing the issue, are actually playing a very clever game here. They don't want to see the islands infrastructure decimated anymore than owners and will be keen to see a satisfactory resololution. Forcing the increase in private rental rates due cost of permits and tax on income would be a way of readdressing the balance.

At least we seem to be moving forward as the reality of the dire consequences of failing to achieve a sensible compromise become more apparent.
 
It is certainly another step towards the sensibility of touristic renting on the island. We all know the financial problems Spain is experiencing and have to respect that they need to find ways of helping themselves rather than borrowing etc etc. If it means taking away this ridiculous idea of illegal renting, which will almost kill off tourism in the North in particular, and allow owners to pay extra for licences, then it is certainly something that most will accept as a compromise. Hope they keep this ball rolling and a good result happens very soon for everyone!
 
The latest update from the UH here :- El Govern regulará una parte de los alquileres en viviendas turísticas » Local » Noticias » Ultima Hora Mallorca.

The Government shall regulate a part of the tourist accommodation rentals
The socialist challenge the PP and claim that if you can not solve the problem it created, will your solution

The Government has already taken the 'political decision' to regularize part of tourist homes that have been outlawed in Tourism. Another thing is how repositioning staged.
As this newspaper has learned several alternatives being considered, the most consistent seems to be an executive order, although no decision will be made official until the vice president and the Minister Delgado Gomez have heard mayors and representatives of the consells. Today will have the chance.
The meeting today and Delgado Gomez maintain municipal representatives and consells be short, if one looks at the provisions of Executive: one hour. That seems to indicate that the government has already decided what to do.
Negotiation
"The Government will listen to all parties involved to try to reach consensus on the most tourist homes," said Congresswoman Lourdes Bosch yesterday, spokesman for Tourism PP parliamentary group.
"The PP does futuribles about what might happen, and knows that he touches now sit, listen, and based on which a decision is spoken."
Other sources of the parliamentary group insisted that the final proposal "will of the Consulate", ie the executive who will present the initiative to be.
From PSIB, Jaume Carbonero and Bel Oliver, Carlos Delgado accused of "creating public alarm" with tourist law, they said, "only dealt with the hotel accommodation."
The Socialists, if the Government does not have an alternative "to fix the problem they have created" plan to bring to the full Parliament a series of proposals that, yesterday, refused to advance.
"They have to give the first step and if you do not know, they should say so and I will give you our solution," said Carbonero after an appearance before the media.
The PSIB Delgado inquires with the Minister as soon as session resumes. For socialists, the best thing would be a modification of the Tourism Act.
The Socialists want to take this opportunity to "members of the PP are portrayed in a vote," as Oliver. From PSIB insists that the standard has caused great discontent among municipal leaders of the PP.
From Tourist merely reflect yesterday that "you will hear the petitions and following decisions will be made then."
Concern
The Chamber of Commerce of Mallorca, who chairs Joan Gual, qualifies all this controversy "fruit of social pressure, so it's more of a civil matter, hence the Government should take action that solves the problem of rent tourist homes located in apartment buildings in one way or another. "
The Estate Managers Association says the Balearic Tourism Act "criminalizes right now the owners of such housing.
 
Great article by Andrew telling it as it is, sadly at the same time showing us how the wheels of government and local government are stuck firmly in the mire of indifference.
 
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This from the MDB :- Majorca Daily Bulletin . Grupo Serra Newspaper . Daily Press . News in English . Online Digital Information . Palma of Majorca Balearic Islands Spain. majorca daily bulletin. grupo serra newspaper . daily press . news in english . online digital info

Government wants amicable solution to the residential tourism debacle.

Palma.—On Friday, the Ministry for Tourism is going to open negotiations with the mayors of the municipalities most affected by residential tourism while senior members of the Partido Popular said yesterday that, in order to find an amicable solution, they want to find common consensus in the best interests of the Balearic tourist industry.
The PP’s spokesperson for tourism, Lourdes Bosch, said yesterday that the government is not ruling out modifying the law in order to resolve the residential tourism debate.

Bosch said that since the new general Tourism Law was introduced in July of last year, 2'000 holiday homes have been regulated in the Balearics, the equivalent of 15'000 bed spaces. “But, in finding a solution to the problems suffered by certain sectors of the tourist industry at the hands of residential tourism we intend to talk to all parties involved and take it one step at a time,” she stressed.

According to the opposition Socialists, there is a huge loop hole in the new tourism law which excludes a number of holiday homes which do not need to be regulated.

Socialists MP Biel Oiver claimed that the government favours a ban as opposed to regulation.
 
Does anyone know how to go about regulating a property as mentioned in this article. This is not for me but a friend.
 
I'd assume the relevant authority would be the tourism ministry, but if anyone wants to regulate a property, go get a good lawyer.

The tourism law in English can be found (ley turismo balears inglés) by Googling. This is the relevant Article from the law's English version:


Article 52
Typology of homes where tourist stays may be commercialised
1. The homes to be used for tourist stays must fall within the typology of freestanding or attached single-family home.
For the purposes of this law, freestanding single-family home is understood to mean a home where only one home is permitted per plot of land. However, after submitting the corresponding proceeding, other circumstances may be accepted in which there is more than one home per plot of land, as long as similar circumstances obtain. For the purposes of this law, single-family attached homes refers to homes located on the same plot of land subjected to the horizontal property system or when attached single-family homes exist in different plots of land connected by a partition wall separating them.
2. Under no circumstances shall homes found in multi-family or attached buildings subjected to the horizontal property system be considered independent freestanding homes, and as a result tourist stays are forbidden in this kind of home.
3. The freestanding or attached single-family homes in which tourist stays may be commercialised must have at most six bedrooms and at most 12 places.
4. To commercialise tourist stays, there must be at least one bathroom for every three places, and in other features the homes must abide by the urban planning parameters applicable to them.
5. Tourist stays may not be commercialised in homes that have not submitted the statement of responsibility upon the start of a tourist activity to the competent administration.
Regulations may be established that require homes that are commercialised for tourist purposes to be subjected to quality plans, and their periods and effects must be determined.
 
As always an excellent article from Andrews blog and it certainly gives some background to the problem.

One hopes the increasing momentum to resolve the issues will not fade over the winter.
 
It would appear that Tourismo have now given their OK for people to rent their private apartments "as before", this appears in the Diario de Mallorca for those of you that speak Spanish, I would imagine that this has been agreed with some sort of proviso that those renting should pay the taxes levied by the goverment which I totaly agree with.
 
That is all well and good - until next time - and how official is this I wonder? The fact is unless the wordng is changed it is still illegal and that is the problem. They have caused a panic and distrust. They have put neighbour against neighbour and worry for renters and owners alike as well as influencing the property market.
Personally I think they have lost so much trust that unless the wording is changed so that it isn't illegal then all this 'we will look the other way' is pointless as next week they might just decide to turn their heads again and be looking straight at apartment owner renters. :(
 
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It would appear that Tourismo have now given their OK for people to rent their private apartments "as before", this appears in the Diario de Mallorca for those of you that speak Spanish, I would imagine that this has been agreed with some sort of proviso that those renting should pay the taxes levied by the goverment which I totaly agree with.

My understanding of the situation is not quite so simple or straight forward.:confused:

Apartments cannot be granted a tourist licence. Therefore, you may rent out an apartment as long as it is not classed as "Touristic". It follows the same procedures that you would follow to rent out an apartment as a long let. You need a Tenancy Agreement. You can therefore not provide "Services" or advertise on a tourist letting site. If you do they can say that you are breaking the law! :eek:

Not sure what services are, probably cleaning, maid service, laundry,welcome packs, car hire, etc.

Also the tax requirements are different, in that Tourist lets must be charged VAT and the method of paying tax owed is different.

I am sure that someone else can provide more information, or correct this.
 
The bottom line is that you can rent your apartment as long as it doesn't compete with the hotels and apartment hotels. Allegedly the legislation was originally drawn up to protect them from "unfair" competition so domestic long term rentals are fine. The smart lawyers are now defining long term as any time period provided it can be shown not to be touristic.

The fact is that there are three touristic markets, hotel, apartment hotels and private apartments / villas. Each caters for a different type of visitor and to suggest that if private rentals were stopped then all the hotels would be full is ludicrous.

The reality is that private touristic rentals have created their own market.

Until the tourist board recognises this and the importance of all three markets and supports sensible regulation to encourage competition and raise vital tax revenue, then it will continue to stifle any real investment and recovery.

Uncertainty will drive visitors away, when that happens who would want to stay in an expensive hotel when many of the excellent restaurants and businesses have long gone.

Introducing a two year moratorium I believe is a way forward and would at least take away the uncertainty for many and allow time to come up with a considered resolution to the problem.

I don't think VAT is an issue El Gordo it's just any income from property is taxed at 24.75% after deducting reasonable expenses and must be paid quarterly.
 
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