New law regulating touristic rental on Balearic Islands has been approved by the Balearic Government by 1st August 2017 and is acting since 8 of August 2017.

What does the law really say and what you can expect to might happen?!

1) The law states the moratorium for any new licenses within one year, respectively till 31 of July 2018, within this period of time local authorities need to defined the areas of the slowed touristic rental and those, where the tropistic rentals won't be authorized at all.

2) The touristic rental of apartments and houses within closed residences is forbidden, the houses and semi-detached houses with existing licenses can be rented for tourstical purpose.

In order to insure the compliance of the law there is a special email address and phone number for neighbors to report about any illegal rentals. The fine could be set up to 20.000€ for illegal rentals of apartments, up to 40.000€ for illegal rentals of the houses and up to 400.000€ for the internet platforms immediating the offers of illegal touristic rentals.

3) The touristic rental is defined as the rental for not longer than maximum of 30 days, any rentals above this time are seen as long term rental with deposit payment and existing long term rental contract. The marketing of such a long term rentals can't indicate any of following terms: "tourist", "holiday" or "vacation".

4) The online touristic rental platforms in order to conform the law need to provide a special license number of every touristic properties.

5) There is a possibility of a touristic rental of the habitual housing for a time up to 60 days in a year, and one and the same person can have maximum 3 of such occasionally rented out houses.

The law has its supporters and opponents among the local people. Those of them, who could find any affordable homes for any reasonable long term rental prices are welcoming the strictness of the law. Those of the locals, who considered the touristic rentals as the main family incomes and only way to pay their annual mortgage are definitely ruined and forced to sale of the properties in a hurry far below the market price.