bed prop bath plot pool tick select sleeps heart star
You are here: GHL IBIZA Real Estate Agent >

Know The Law – Buying To Rent In Ibiza

Know The Law - Buying To Rent In Ibiza

Generally speaking, making a return on investment in the property market means adding value to your home and waiting for the prices to go up. But buying property in a popular tourist destination opens up a whole new world of opportunities.

Here in Ibiza there is the chance to make instant returns via tourist rentals. Whether if it’s your long-term residence or a second home you can make some money back pretty quickly, but beware the pitfalls.

In the recent past it was fairly easy to rent out your property to tourists. You simply threw it up on the Internet and started taking bookings.

However, most of those bookings fell well outside of the law. The authorities are catching up and changes are designed to regulate the rental market.

The new laws have created some confusion for the holiday rental scene in Ibiza and with fines reaching up to €40,000 it pays to know where you stand in the law.

All properties intending to rent to holidaymakers must have a license. Only freestanding homes are permitted to apply.

In the past the act of applying was all that was required to start renting however, there is currently a moratorium on issuing new licenses. So unless your property already has one you’ll have to wait until points two and three are sorted out.

The new laws intend to place tourist rentals into zones. How this is actually going to work is a mystery but the responsibility of carving up the zones will fall to the individual municipal councils.

At what point each municipality will decide the tourist zones is unknown. Bless the poor soul whose desk that lands on. Homes that already possess a licence will be unaffected by the zoning and permitted to continue renting.

Which brings us to the final piece of this complicated puzzle – the future.

Unfortunately the crystal ball is in the repair shop however at this point in time it seems exceptions will be made for owners who’s homes fall within the designated zones to rent to tourists for a maximum of 60 days as long as the property is the owners habitual house and not operated by an external rental company.

What kind of license is required, if any, for that scenario is as yet unknown.

What this all means for return on investment from tourist rentals is murky.

However, the good news is that the Ibiza property market it hot and getting hotter. The traditional way of getting a decent return on your investment is as positive as ever.

Buy in Ibiza and you will never be disappointed.

Other interesting articles

Big Events Not To Miss This 2020 in Ibiza

Ibiza is know all around the world for being the party capital of Europe, but the fun doesn’t all just…

Should you buy a new home or an existing property in Ibiza?

When it comes to buying a property in Ibiza, you might find yourself wondering if you should buy a new…

Forecast Ibiza Property Market 2020

The latest report provided by the Spanish appraisals and valuations company TINSA, forecasts a steady moderate growth in the Spanish…

Christmas and Holiday Season in Ibiza: What You Need to Know

Christmas in Ibiza is something special, the island truly comes alive during the festive period. The celebrations are not a…

Solar Energy For Your Ibiza Property

100% renewable energy in Ibiza and Formentera is achievable as it’s estimated that we can enjoy around 3,000 hours of…

REVIEWS
Offices

Both our offices are located right in the heart of the island, in Santa Eulalia and San Juan. Our prime locations provide easy access to all our customers. We are always happy about your visit and we would like to introduce you to our portfolio.


 

GOULD HEINZ & LANG – Paseo s’Alamera 11
07840 Santa Eulalia, Ibiza, Spain
+34 971 339 305
office@ghl-ibiza.com

 

 

GOULD HEINZ & LANG – Plaza Major
Sant Juan, Ibiza, Spain
office@ghl-ibiza.com

Newsletter Offers,
legal advice & lifestyle
Newsletter iPad