Majorca Property News

New legislation on tourism in Mallorca offers investors more opportunities

Government of the Balearic Islands give investors greater legal certainty for the purchase of properties in Mallorca.

The Parliament of the Balearic Islands on 20 July 2012 adopted a new, somewhat controversial Law on Tourism. Restructuring are provided with which the ruling conservatives want to meet especially the hoteliers on the island.

The law facilitates the construction of new five-star hotels: the requirement that the compensation for the need to close old hotels, applies to the five-star hotel not if they do not exceed the number of 450 guests. Pure hotel companies may also be built on the land.

Future simplifies the conversion of hotels into apartment complexes. Also the establishment of so-called condo hotels - a mix of private apartment and hotel suite - is provided by law. Another scheme covers homes with fewer than three stars: These are to be committed to modernization. For illegal guesthouses generally harsher penalties.

The conservative majority in parliament voted unanimously for the law, as the news agency Europa Press reported. The opposition voted against. The law will come into effect in the winter. The government wants to attract private investment and thereby achieve an upturn in the economy.

However, have private dwellings are rented to tourists, be registered as a vacation property. Only then the rental is legal. These can cause 40 thousand euro fine. The illegal renting of rooms and vacation properties to be prevented. These arrangements would hoteliers handy as upscale holiday homes represent a great competition to the "concrete block" of holiday destinations. The broker Apartments confirm that with the entry confirms a host that he adheres to this rule.

Already in 2007 it was decided by the Balearic Tourism Authority ETV that all resorts must wear a visible seal of quality. This affects all the properties that offer cleaning and on-site supervision. The plaque is attached to the house wall. This means that the tourism authority has certified this property, because they meet all the necessary requirements. The stringent requirements include, for example security (railings, handrails), size of the pool and the amenities of bathrooms and kitchens. Independent experts regularly check whether the quality criteria are met.

Environmentalists such as Greenpeace see the law critically and call this the "back", because previous controls and restrictions would be lifted. This had a negative impact on the Mallorcan countryside and would thus reduce the "tourist competitiveness" of the Balearic Islands.