Great news that the Balearic government is finally tackling the thorny issue of the so-called illegal holiday rentals. The Balearic parliament agreed that legislation aimed at tackling the so-called illegal holiday rentals market will be presented in the forthcoming months. But of course there is method in the madness of our dear Balearic government. The so-called “uncontrolled holiday accommodation” accounts for a big chunk of the total Balearic offer. Some even say that we are talking about a third of the market. Now, the Balearic government wants everyone to pay the tourist tax, hence why they are keen to bring this market into line. If it doesn’t legally exist then tourists who stay in “unregulated” holiday accomodation will not be paying the government surcharge. Imagine the outcry from local hotels. They are already furious that the tourist tax is being introduced and they are not best pleased at the so-called illegal holiday accomodation market. So imagine their fury if and when the tourist tax is introduced and their biggest bugbears escape paying the tax. I don’t think we are talking outcry; I would say that we are talking full-blown fury. But at least it is a step in the right direction. The minister for tourism, Biel Barcelo, told me during an interview that they were not overly concerned at a single person renting out their apartment; they wanted to tackle the large-scale operations. Interesting times.
Illegal holiday market
03/03/2016 00:00
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Why not the single person that rents to tourists? They are some of the biggest tax avoiders. In my complex of 38 apartments, 75% are rented out most of the summer. They are all single owners, a lot of whom have just bought purely for renting.