Taking action against illegal holiday rentals

In Mallorca, the fight against illegal holiday rentals has entered a new phase. Now, the Balearic Islands' tax authority, ATIB, will join hands with local councils to bolster measures against this unlawful practice. This significant move seeks to clamp down on tax evasion associated with tourist accommodation rentals.

Close collaboration between local councils and ATIB

One of the pivotal strategies set to be implemented involves a close collaboration between local councils and ATIB. This joint effort aims to scrutinise the payment of taxes for tourist accommodation rentals by cross-referencing critical information. Ensuring that the ITS (Sustainable Tourism Tax) declaration accurately reflects these rentals is a top priority.

The drive for this intensified approach came after a significant decision made by the EU Court of Justice in April 2022. According to this ruling, middlemen who are engaged in facilitating holiday rentals have an essential responsibility: to provide tax-related information to the government. This is meant to make sure that taxes linked to vacation rentals are collected and controlled better.

Ongoing fights against illegal rentals

Llorenç Galmés, President of Mallorca's Council, spoke passionately about the ongoing fight against illegal holiday rentals. He stressed that this issue holds a special place in the heart of Mallorca's Council, even in their current term. Their mission transcends mere regulation; it's about ensuring fairness for all involved parties and preserving the vibrant soul of Mallorca's thriving tourism sector.

To tighten the grip further, new regulations have been put in place. Properties cannot be listed on popular platforms like Airbnb and Homeaway, real estate websites, or social networks unless they possess a valid tourism licence. Violators face hefty fines of up to €40,000 for illegal listings, and websites hosting such listings could face fines of up to €400,000. Additionally, an individual owner is restricted from advertising more than three properties.

Preserving the island's flourishing tourism

Moreover, it's essential to note that apartments have been unable to obtain a tourism licence since 1999. Any apartment offered for rent for less than 30 days automatically falls under the category of holiday rental, unless proven otherwise.

Mallorca’s local councils and ATIB are taking strong measures to combat illegal holiday rentals. It’s important to note that adherence to regulations is not only mandatory but crucial in preserving the authenticity and sustainability of the island's tourism landscape.