New Legal Measures Affecting Real Estate in Mallorca

On Tuesday, May 28, 2024, Decree Law 3/2024 was published in the Official Gazette of the Balearic Islands. This law introduces urgent measures for the simplification and administrative rationalization of public administrations by the Government of the Balearic Islands.

Key Highlights of Decree Law 3/2024

Extraordinary Legalization Procedure

The Decree Law establishes a procedure for the extraordinary legalization of buildings, constructions, and installations on rural land, provided that the administration’s right to enforce urban planning regulations has expired. The legalization process has a three-year limit.

Regulations for Protected Rural Land

On protected rural land, constructions built before the Law on Land Management and Use of May 29, 2014, can be regularized. For areas covered by the Law on Natural Spaces, the constructions must have been built before March 10, 1991.

Requirements for Legalization

To proceed with legalization, a technical project must be submitted to the Town Council, including environmental measures like reducing light pollution and improving energy or water efficiency.

Exemptions and Prohibitions

The Decree Law does not apply to:

  • Buildings subject to expropriation, compulsory transfer, or demolition.
  • Constructions in the public domain, road protection zones, or coastal easements.

Additionally, buildings legalized under this procedure cannot be used for commercial tourist stays.

Fees and Taxes

Beneficiaries must pay the usual taxes and fees for new constructions, plus an economic contribution based on the cost of the material execution. The contribution rates are:

  • 10% in the first year
  • 12.5% in the second year
  • 15% in the third year

These rates are lower than those set in the 2014 legalization law.

Purpose of the Seventh Additional Provision

The goal is to allow the legalization of non-compliant constructions, provided they submit a technical project with sufficient energy efficiency measures and pay the required fees within three years.

Approval Status

The Decree Law, issued by the Government of the Balearic Islands, requires approval by the Parliament to become permanent. We will update you once it has been approved.

Conclusion

Decree Law 3/2024 presents significant opportunities for the legalization of non-compliant constructions in Mallorca. However, it is essential to act within the specified timelines and meet all requirements. For more detailed guidance on how these legal changes impact your investments, please contact us.

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