A small revolution has occurred on the island over the last five years. Anyone, anywhere who had a flat or a house suddenly woke up to the possibility that they could make some extra cash during the summer months by renting out their property. I would say that the practice was widespread. It was easy money. Everyone wanted to come on holiday to Majorca and even homes in the rather less glamorous parts of the island were starting to be attractive for people looking for a break in the sun. I remember a taxi driver told me that he had taken an Italian couple to one of the more downtrodden Palma suburbs: they had rented a flat there for a week. Unfortunately, they had been promised plenty of half truths on the holiday website. Sooner or later something was going to upset the apple cart. The Balearic government introduced tough holiday rental laws and actively went after holiday websites which offered homes for rent which did not have the necessary paperwork. Many home owners got the message.
End of the line
Palma25/03/2018 00:00
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4 comments
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don't worry you soon wont have a neighbour or shops or restaurants or bars , where is the other industry employment when tourism ceases to exist due to over regulation and people vote with their feet and go elsewhere
Well I rented out for years from 2007 - declared all income, with signed rental contracts. My Spanish accountant told me to stop doing it in 2010 as they said I was satisfying Hacienda but not Mallorca. Hacienda now loses tax from me of €7000 + - as the property is now long term. I upset my repeat clients whom were all lovely families. You cannot make sweeping statements like this. This shows that you have a Spanish mentality of avoiding being honest in your tax declarations and living a Cash life. They have lost the independent family traveller. What Mallorca fails to see is that this is the style of holiday that is developing.
Jason - how can you possibly say that owners were not paying tax? This info. is private and confidential. Has it ever occurred to you that many older owners or unemployed have a substantial tax free allowance to offset against any taxable income? Have you any news on the Chinese take over of Mallorca? Evading IVA in their multitude of bazaars, and increasing rents on their properties in Jaime 3, demanding rents up to €30,000 per month for Loewe. C&A possibly going. Never mind! Concentrate on the poor owners trying to supplement their meagre pensions. Not my words - all reported in the daily press.
A lot of properties will be coming up for sale now that the owners will no longer be able to rent them out but they will still be unaffordable for most locals. No or very few affordable homes have been built in the last ten years and that is the real problem. Now watch as many businesses close over the next few years and unemployment rises and the hoteliers couldn't care less,if fewer people visit Majorca,they will close hotels without a qualm.