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.
But, What About the Properties I Have Previously Rented?
You might have rented properties in Ibiza recently; this might even have been what sparked your dream to purchase a property. Or, you might have friends who are currently reaping the rewards of renting out an apartment on the white isle.
However, this will likely be officially illegal (unless for a period of longer than 1 month, which is considered long-term) if they do not have the correct permit.
Properties should not be advertised on the Canales de oferta turistica (Touristic offer channels). This rule should be taken extremely seriously, as a severe fine can be awarded to property owners for doing as such.
What are Touristic Offer Channels?
Touristic offer channels, or Canales de oferta turistica, covers a wide range of agencies.
Included under this umbrella are booking sites, travel agencies, real estate agents and other organisations offering tourist services. This includes advertising on websites, social media, or any other form of communication.
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:
- The property must have a valid certificate of occupancy. Known as the cedula de habitabilidad.
- 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.
- 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’.
- 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.
- 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 the touristic licence, you can still rent a property legally in Ibiza. But it can only be long term rentals, which needs to be for longer than one month. Additionally, the property must not offer any touristic services.
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.