Tourist rental of private houses is facilitated

The tourist rental of private houses has been made much easier by a law passed by the Balearic Government in 2012.

Homeowners in Ibiza and Formentera who meet all the criteria laid down in the law will now be able to obtain permission to rent detached houses to tourists more easily and quickly.

The competent authority for granting tourist rental licences is the Island Council (Consell Insular).

A homeowner can submit an application to the Ibiza Island Council and, when the application is submitted, receives a provisional permit, i.e. the house can already be rented. If it later turns out that the conditions for the granting of a permit are not met and the final permit is not granted, the tourist rental is of course no longer permitted.

Here are the most important requirements for the granting of a licence:

– in principle, only one single-family house per plot can be rented for tourism, but under no circumstances apartments or apartment blocks

– only a rental contract with a maximum term of 2 months may be concluded, otherwise it is no longer a tourist rental

– the property must not have more than 6 bedrooms and a maximum of 12 sleeping places and must be equipped with at least one bathroom for 3 places each.

– Furthermore, the property owner must guarantee certain services to the tenant: Among other things, the rental property must be cleaned regularly, bed linen and towels must be provided. Also the house should be regularly maintained and there must be someone available for the tenant 24 hours a day.

Together with the application the owner must submit a number of documents to the Island Council. In addition to proof of ownership (e.g. through a current extract from the land register), a map of the house and a plan of the interior rooms and the layout of the rooms are required. The applicant or an authorised expert must also submit copies of the owner’s ID and tax number (NIE), as well as proof of payment of property tax (IBI).

If these details are incorrect or incomplete, the licence will not be granted and the provisional licence will be revoked.

The income from the rental must of course be taxed and VAT must be paid. On the pure letting 21 % value added tax is due. If services are offered that go beyond mere letting, a different VAT rate may be applicable.

It is advisable to seek advice from an expert regarding the authorisation procedure and the exact conditions as well as the taxes that apply.

If you are planning to rent your property in Ibiza for the summer, you are advised to apply for the permit as soon as possible.