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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.

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The App features our client’s luxury villas and is available from all of the various App stores, in all formats and is downloadable free from all platforms and for any device.


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GOULD HEINZ & LANG – Paseo s’Alamera 11
07840 Santa Eulalia, Ibiza, Spain
+34 971 339 305



GOULD HEINZ & LANG – Plaza Major
Sant Juan, Ibiza, Spain

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