Palma21/02/2018 00:00
The Balearic government may have opened a can of worms with its get-tough campaign on so-called illegal rentals. This week the government fined one of the leading internet renting companies for displaying properties which (allegedly) did not have their paperwork in order. Let’s face it, holiday rentals are widespread across the island. For many years the local authorities appeared to turn a blind eye to the practice despite their threats of a crackdown.
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I have to disagree with TG who states "this is good for our Island unless you are renting illegally". We have been coming to Mallorca for nearly 20 years and have owned an apartment here for the last 6 years. Having got to know many of the bar and restaurant owners over the years (mostly Spanish) they were certainly not viewing this as "good" when we were there in October - most were extremely concerned, with a couple expressing a view that their businesses may not survive beyond this season if licences are not made available. Although we do not rent out our apartment, I am very conscious that renters bring in a great deal of revenue to local businesses - if this changes significantly we may start to see shops, bars and restaurants closing - personally I have no desire to walk around the resort with an ever increasing number of "se-vende" signs going up. I am not against regulation of rental properties (although from personal experience I have often found these properties to be better maintained than many hotels) but any significant reduction will certainly not be seen as "good" by everyone............
You make some good points Henrik but unfortunately you are trying to apply Northern European sentiments to Southern European mentality. Attitudes to taxation here are far removed from what we deem as acceptable in the UK and Denmark. It would be great to see a step change in attitudes here but I won't be holding my breath.
The people whom the government wanted to encourage, the big spenders, will be driven away. While mass tourism is encouraged as long as it benefits the hoteliers, all inclusive The only small businesses to benefit will be those selling kiss me quick hats
Actually the government are not “getting tough”, it’s quite normal to enforce illegal practices. This may be unusual in Mallorca but most democratic countries do enforce the law of the land. Regulation of rentals is long overdue. And tourist saturation is the reason why the new laws are required. This is good for our island, unless you are renting illegally.
As I can read in the Marjokinese media and what I've been doing around the web, I find it hard to find the Marjokin rules in this area. It seems very bulky and difficult. I am aware that rental terms at mallorca try to protect the hotel and restautions industry. But come on, that industry has plenty to do at Mallorca. Let more tourists come to the island, it will create jobs, increase revenue and tax payments. I would like to encourage the politicians in Majorca to study the Danish law on rental of property closely. I am Danish, I have summer homes both in Denmark and in Mallorca. I can refer to the Danish rules that I am covered at my 2 summer homes in Denmark. In Denmark, you can do rental at your property, but you have to pay tax on the rental, in Denmark you have a tax deduction on your own taxbill, you have a return of approx. 3,000 euros per housing you rental, all rental above 3.000 euro will be added to your annual earnings as salary on your private tax bill / and you will be taxed accordingly. Your home have to be rented through a leasing company with a contract and the rental company has a duty of reporting to the tax office in Denmark, you have to pay tax to the danish state, you cant cheat. .. If you rent out and forget to report your rental amount, you will be taxed back in time (all owning time) when you have a summer residence and you pay a fine above the amount of tax, which means that you will be sentenced to be taxed by 50,000 euros, and so will fined also be 50,000 euros, totaled 100,000 euros. Do it easy, follow the Danish guidelines. Just my point of view.