The latest report of the National Commission Markets and Competition (CNMC) considers unacceptable the many obstacles that put regional administrations to tourist lease. Also argues that should be eliminated almost all the tourist rental requirements imposed by the Balearic Law. The report finds that regulations on tourist use housing approved by the autonomous communities contain market access barriers posed limitations on competition in the sector, offering six recommendations are explained below:

– The elimination of any kind of moratorium on the authorization of new tourist homes.

– Delete the registration of tourist accommodation in a register and the publication of the registration number as it believes that would be equivalent to a system of prior authorization activity. Such requirements involve excessive administrative procedures and is contrary to the regulations of the European Union on services. Article 27 of the Law of Tourism of the Balearic Islands is the one who establishes the need to enroll in business registers, activities and tourist establishments.

– Eliminate any requirement of minimum or maximum stay in tourist accommodation.

– Eliminate any limitations on the type of housing, excluding the type of floors in horizontal property regime in favor of single-family or semi-detached houses. In the Balearics , Article 52 of the Law of Tourism explains in the first paragraph  that only in detached houses or paired marketing is permitted tourist stays.

– Elimination of the prohibition of stays or rent for permanent residence.

The report finds that the regional regulations on tourist use housing contain a large number of requirements that may represent a burden that discourages market share and increase costs for users. Article 51 of the Law of the Balearic Tourism states that the marketer of tourism services must ensure the following services: regular cleaning of housing, bedding, linens, household goods generally, maintenance of facilities and care service to the public during business hours. The Balearic legislation also requires the marketer to have a telephone support service to tourists for 24 hours. It also obliges the available housing up to six bedrooms and sleeps 12. CNMC observes how homes for tourist use are not being considered within the statistical range of accommodation National Statistics Institute (INE) and recommends to establish a new category to be added to the existing (hotel, camping, tourist apartment and accommodation rural). The report’s conclusions are in a situation of public exposure to await the contributions made both experts and citizens until 15 April.

If you are thinking of renting a holiday home to enjoy your vacation time or has a property in Mallorca and want to get a rental income don’t hesitate to contact us. Ripoll & Mateu Solicitors in Mallorca will advise and report on the Law of Tourism and the situation of vacation homes in Balearic Islands.