From 11 February 2022, due to the huge boom in the number of properties applying for licenses and the tourist overcrowding, the authorities decided to temporarily suspend new tourist license concessions for a period of 4 years, until 2026. During this period it will be studied how many tourist places at most will be available in the future for the island of Ibiza and therefore how many new tourist licenses can be granted.
The island of Ibiza has always been a highly sought after place for clients from all over the world to buy a property. Many of them want to be able to purchase it not only for their own private use but also as a profitable investment and to rent it out to tourists when they are not enjoying it.
Many people are unaware of the current laws that regulate tourist rentals on the island of Ibiza and there are many factors to take into account when starting our search for a house or villa with a tourist license. Having a fully legal tourist license will give security both to the owners, avoiding possible sanctions, and to the tenants who will be able to enjoy a property that meets the required standards of quality and safety.
For this reason we have prepared this article summarizing the most important things to know.
WHAT IS A TOURIST RENTAL LICENCE?
It consists of temporarily ceding the enjoyment of the entire property to third parties for individual days or weeks, without exceeding 30 days of duration to the same person.
Only the entire property can be rented, i.e. it is not possible to have different people in the same period of time renting individual rooms.
It is very important to know that only detached houses or villas are eligible for a tourist rental license, and it is forbidden to rent out flats for single days or weeks to tourists: https://lasanclas-ibiza.com/blog/en/illegal-tourist-rentals-of-flats/
Currently, the maximum period that we can rent our property using the tourist licence is set at 60 days per year if we have a licence or application after 2017.
Licences or applications prior to 2017 can use such a licence without limitations of days.
If the property is rented for more than 30 days, including flats, it will not be necessary to apply for a tourist rental license as it will be considered a seasonal or long term rental.
WHAT ARE THE MINIMUM REQUIREMENTS FOR THE PROPERTY?
Not all detached houses and villas can apply for a tourist rental license as there are some basic requirements and minimum documentation necessary to qualify.
The most important requirements currently required are:
- To have a valid “cedula de habitabilidad” (certificate of first occupancy).
- To be located in an area considered as a tourist area established by the authorities taking into account the resources of the area and the quality of life of the residents.
- Not have any pending sanction to remedy regarding any urban infraction.
- The property must be at least 5 years old before it can be applied for.
- The property must have an energy efficiency certificate with a rating of at least F for buildings built before 31.12.2007 and at least D for those built after 01.01.2008.
- The property cannot have more than 6 bedrooms and accommodate a maximum of 12 people.
These are only the main requirements, but there are many more requirements concerning for example the compulsory insurance, additional services to be offered, number of bathrooms per room, etc. Our agency has a network of collaboration with expert lawyers and management companies that can help you in this process.
HOW TO KNOW IF THE PROPERTY HAS A DEFINITIVE TOURIST LICENCE?
It is very important to distinguish between properties that only have an application for a tourist license and properties that already have a definitive tourist license.
Once the application has been submitted, we receive a provisional permit that allows us to start with the tourist rental, but if the property does not comply with the requirements imposed by law, the competent bodies, after having made the relevant checks, will not grant the definitive license and the provisional permit to rent will be suspended.
In order to know that the license has been approved and granted, it is necessary to check that the license begins with the initials ETV (Estancia Turística Vacacional).
MUST THE LICENCE BE RENEWED?
Finding out in which year the house or villa you want to buy obtained the tourist license is another point to take into account as it involves other factors.
Properties that have licenses granted or also applications submitted before January 2017 do not need to be renewed and it is not compulsory that they are in an area considered as a tourist area.
From January 2017 the Gobern Balear changed the procedure and the requirements to obtain a license are now stricter, including the obligation to renew the license every 5 years and to be subject to the zoning we mentioned before (whether considered as tourist or not by the corresponding town halls).
WHAT IS THE COST OF GETTING THE LICENCE?
Licenses and applications dated prior to January 2017 only have to pay a fixed annual fee for the entire property. This is approximately €600 per year.
From January 2017, the fee is per tourist place, i.e. the number of beds for guests in the property, and can never exceed the maximum number of people that can legally occupy the property as indicated in the cedula de habitabilidad (certificate of occupancy).
This amount is paid when applying for the license and in advance until the next renewal, which is every 5 years.
The price per bed is currently €4,300, remembering that the maximum number of beds that can be rented per property is 12.
Even with a moratorium until 2026 there is no need to be alarmed, as the revaluation of a property grows every year in Ibiza and it is always a safe investment to buy a property now and take advantage of this time to adapt it, if necessary, to the requirements of the law and have all the documentation ready to apply for it once the moratorium is over.
We have several properties for sale that already have a tourist license:
https://lasanclas-ibiza.com/en/properties-with-tourist-rental-license
Please do not hesitate to contact us if you have any queries or would like to arrange a viewing.
