In Mallorca, illegal vacation rentals are an acute problem, further exacerbating the housing shortage in many places. Vacation rentals are therefore almost completely banned in some areas. Nevertheless, numerous accommodations are offered for rent to vacationers.
In a meeting between the spokesman of the Balearic Government, Antoni Costa and Llorenç Galmés, president of the Island Council of Mallorca, it was agreed that the Island Council and the Tax Department of the islands will seek greater cooperation in the fight against illegal vacation rentals. In order to locate providers without a license, the tax authority ATIB, the data received from the Spanish Ministry of Finance on properties in the vacation rental, to pass on to the municipalities. In the coming months, it will be worked out how the data exchange between the tax authority ATIB and the municipalities could take place.
The tax authority ATIB plans to review by the end of 2023 as part of a campaign whether the sustainable tourism tax ITS database includes accommodation managed by management companies to be rented to holidaymakers. An ECJ ruling in April 2022 requires companies to share their tax information with the government. This ensures that rentals can be controlled and at the same time the necessary taxes can be collected.
Do you have questions about real estate law in Spain or about applying for a vacation rental license in Mallorca?
Dr. Dominic Porta advises you as a German lawyer in Mallorca in Spanish real estate law.
www.anwaltmallorca.eu
