Majorca.—Since authorities passed the new policy to avoid unfair competition and tax fraud, the number of home owners now ready to offer legal accommodation on the islands has risen to 132.000, announced Jaime Martinez, General Director for the Tourism department this week. Last year alone 1'700 home owners sorted their legal papers out and are now ready to rent their houses. Considering that prior to 2012, during the previous 25 years , only 2'800 houses were legalised, Martinez says the measure taken by the authorities has proven to be a success. “We know how important residential tourism is for the region. That's why we decided to turn the rental of chalets, semi detached houses and rural properties into a legal business. We have reached an agreement to avoid unfair competition.” Martinez added that the authorities decided to leave out of the deal multi-family housing units, saying “it would overload the current tourism model” and they were not keen “in changing the new law again”.

The director also assured that the cost of facilitating the process, so that residential homes could become legal easily, costs the authorities nothing since each home owner has to pay 5'000 euros to see their situation become legit.

The tourism department alongside the Councils's of Minorca, Ibiza and Formentera, where the offer for residential tourism is also booming, predicted that the rise in the number of residential homes will continue over the next few years. The authorities confirmed that there are currently 700'000 residential homes for rent, of which according to their books means 200'000 are still illegal.

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