A Complete Guide on the Tourist License in Ibiza 2023

1. Everything You Need to Know Before Purchasing a Rental Property in Ibiza
2. Which Properties Can Get a Touristic Licence?
3. But, What About the Properties I Have Previously Rented?
4. What are Touristic Offer Channels?
5. So, How Do You Obtain a Touristic Licence?
6. Filing the Application
7. Properties That Already Have an Application with the Town Hall
8. What if You Find a House with a Touristic Licence?
9. Renting a Property Legally Without the Licence
10. RECENT UPDATES (2023)

Everything You Need to Know Before Purchasing a Rental Property in Ibiza

Many dream of buying a property in Ibiza, spending long summers in the sun and renting out the home as a holiday let when not in use. However, once you start researching and planning, you will quickly discover that this idea is not straightforward. You should also be acutely aware that not every property in Ibiza can be legally rented to tourists (short term meaning less than a month). For your plan to come to fruition, you will require a touristic licence in Ibiza.

Which Properties Can Get a Touristic Licence?

Unfortunately, not every property in Ibiza is eligible for a touristic licence. Many are shocked to learn that touristic licences are not available for apartments. In fact, only detached properties can apply for these licences. This does not mean a touristic licence will be granted for all detached properties, but merely they are the only ones who can meet the criteria to apply.

So, How Do You Obtain a Touristic Licence?

To apply for a touristic licence in Ibiza, there are a number of minimum requirements that the property must meet:

1. The property must have a valid certificate of occupancy. Known as the cedula de habitabilidad.
2. The property must be located within a tourist zone. Tourist zones are established on many factors, including environmental data, population information and planning criteria. Tourist zones correlate directly to the level of tourist influx that the area can support; without significant repercussions on its resources and management capacity. Importantly, these tourist zones are allocated with the local residents’ quality of life as the primary concern.
3. A home cannot be rented as a holiday home where a sanction has previously been imposed, for a ‘serious’ or ‘very serious’ infringement of the holiday rental licencing laws. This prohibits the property from being used as a holiday rental until the sanction has been fulfilled and the property’s legality is restored. So, when looking for a property to obtain a touristic licence, always ask for a ‘certificado de inexistencia de infraccion urbanistica’.
4. The property must be at least five years old before it can obtain a touristic licence. During those five years, the house must have been used as a private residence.
5. The property must have a relevant active energy certificate. This means the house must meet specific energy efficiency requirements—rating F for buildings constructed before 31/12/2007 and rating D for buildings built after 01/01/2008.This list simply covers the main requirements, but there is much more that will be taken into consideration.

Filing the Application

As soon as the application has been filed, you can start renting out the property. This is because when you hand in the application, you are testifying that your property meets all the necessary criteria. However, the property will still be inspected at a later date. Suppose it is found that there is any inaccuracy, falsification or omission in the application or statement.
In that case, the registration will be cancelled, and there will be an immediate suspension of holiday rental activity.

Properties That Already Have an Application with the Town Hall

When on the hunt for properties in Ibiza, you will likely come across homes that already have an application with the town hall. If this is the case, you must obtain a copy of the application to determine when it was issued.In January of 2017, the Balearic Government stopped tourist rental applications, to relaunch a new procedure, which was put into place in July 2017. The new restrictions are more rigorous, requiring a greater criteria to be met before your property will be granted the tourist licence. If the original application was requested before the new rules came into force, the property will be subject to the previous, seemingly more relaxed, rules. The current rules require the licence to be renewed every five years, whereas the previous ones did not. Additionally, the older rules can mean that your licence costs substantially less, with a set tax payable for the whole property. Whereas, for the newer licences, the fee is payable per bed.
Finally, and perhaps most significantly, properties with an application submitted before 2017, are not affected by the ‘zoning’ rules.

What if You Find a House with a Touristic Licence?

If this is the case, ensure that you have the application checked thoroughly. Anyone could apply for the licence, but having it granted is an entirely different thing. Be careful not to mix up the licence application with an actual licence. An approved licence always starts with ETV. You must have this checked out to ensure the licence is valid, and it has not been revoked.

Renting a Property Legally Without the Licence

Without a tourist licence, you can still rent a property legally in Ibiza. But it can only be long-term rentals, which need to be for longer than one month. Additionally, the property must not offer any touristic services.

RECENT UPDATES (2023)

The Balearic Islands are currently struggling with the issue of illegal tourist rentals. While tourism significantly contributes to the local economy, unregulated and illegal rentals threaten the cultural heritage of all these islands, particularly Ibiza. Through the next few paragraphs, we will navigate the recent developments, regulations, and steps taken to control this huge issue, while preserving the unique cultural fabric of the region. Here in Ibiza, the housing shortage is a pressing issue throughout the year, but during the tourist season, the situation worsens significantly for local residents and seasonal workers. Many available homes are illegally converted into tourist rentals, turning the entire island into an overpriced hotel, leaving little affordable housing for those who live and work there.

June, 2023

The President has noted that the upcoming change to the Insular Territorial Plan (PTI) includes significant measures to address the issue of tourist rentals in Ibiza. At the moment, there are around 19,000 legal tourist accommodations. However, the new urban regulation will limit the homes eligible for a tourist license to just 1,000. Currently, about 13,000 homes could apply for this permit, but with the revised PTI, only homes built before 1956 that meet certain specific conditions will qualify. These rules aim to encourage tourist rentals within traditional properties. Full article is available here.

The Balearic Islands have initiated measures like increased inspections and fines, now ranging between €20,000 and €40,000 for renting without a license. Despite these measures, the high number of tourists and the significant profit from these illegal rentals continue to pose a challenge.

February, 2023

One of the recent examples of incidents reflecting the violation of these rules is when the Consell of Ibiza imposed a fine of €20,000 on a foreign citizen for illegally marketing a tourist rental in Sant Jordi, Sant Josep. In this case, the property owner was able to avoid the penalty by reporting the tenant, demonstrating that the issue not only involves property owners but tenants as well. The Anti-Intrusion Office collected €1.1 million in penalties over the past 12 months, signifying the ongoing battle against illegal rentals. For more details, please see the full article.

May, 2023

Another incident involved a commercial property owner in Ibiza who faced a hefty fine of €120,000. The fine was imposed for unlawfully converting the villa into an eight-room tourist accommodation without the license. These violations led to penalties for urban planning and alterations from commercial to residential use, amounting to €66,867.06, or 75% of the cost of the illegal renovations. For further details on this topic, please refer to the full article.

April, 2023

On the other hand, the regional government has been collaborating with platforms like Airbnb, and their efforts have significantly reduced the number of properties listed. Data from AIRDNA, an investor information tool, published by Noudiari.es in May 2022, shows a significant decrease in property listings on Airbnb and Vrbo in Ibiza and Formentera from 7,935 accommodations in the high season of 2019 to 4,375, almost 45% less. Today, Airbnb offers “more than 1,000 tourist accommodations” in Ibiza: including around 100 rooms, many of which are in multifamily or residential buildings. For a more comprehensive look into the issue, you can visit the original article here.

Are you looking to buy a property with tourist license in Ibiza? Make sure you perform the right checks before buying. Do you have any more specific questions that you would like to have answered or do you need assistance in your search? Feel free to contact us.