Tourist Rentals.

Tourist Rentals.

14-10-2020Ultima Hora

The Government has stopped issuing disciplinary proceedings against tourist rental platforms, such as AirBnb, Homelidays and Booking.com for advertising apartments or homes that don’t have a Ministry of Tourism licence.

In a Parliamentary response addressed to PP Deputy Salomé Cabrera, Minister Iago Negueruela acknowledged that his department has decided not to issue sanctions against these platforms "in view of the legal complexity of the disciplinary proceedings.”

Origin of Conflict

Minister Negueruela referred to a lengthy litigation that originated from the modification of the Tourism Law to oblige marketing platforms to include a declaration of tourist activity, or DRIAT and a tourist registration number in the marketing announcements to prevent illegal tourist rentals.

When AirBnb did not comply with the regulations in February 2018, the Department of Tourism imposed a fine of 300,000 for advertising tourist rentals without the necessary licence. The platform filed an appeal and the Superior Court of Justice of the Balearic Islands, or TSJIB agreed with the company and annulled the fine last May, on the understanding that it could not "impose the obligation to carry out a review of all the advertising that hosts publish on the web."

Community Law

The court also ruled that the modification of the Tourism Law "violates the principle of primacy of Community Law" and that, according to EU regulations, the obligation to record licence numbers should only affect tourism companies, not marketing.

The ruling also pointed out that the company is based in Ireland and concluded that as a service provider established in that country, it is only subject "to the rules of the country of establishment in everything that refers to the coordinated scope of the EU."

The Government appealed the TSJIB verdict and although there is no firm ruling it decided not to open new disciplinary proceedings.

Anti-Covid-19 measures

In saturated areas, tourist rentals are only allowed for 60 days a year in single-family and multi-family homes.

In her Parliamentary request, PP Deputy Salomé Cabrera asked Minister Negueruela which companies and tourist rental platforms a sanctioning file had been opened for and the Minister replied that the actions taken since the approval of the law "are diverse" but did not specify how many files had been opened.

The Conselleria de Model Econòmic i Turisme states that minutes have been taken for failing to comply with other articles of the Tourism Law not related to the obligation to publish the licence number and pointed out that inspection services have focused on monitoring compliance with anti-Covid-19 measures in tourist areas this year.

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Steve / Hace 11 days

@Fred. This only refers to the obligations that they imposed on the advertising platforms. There's no change to the legal requirements of the property owners, and the penalties for non-compliance as far as I can see. This all came about as a result of the hoteliers greed in wanting to monopolise the sector. The only sector they monopolise now is forced closure, so little sympathy there...

+11-

Rob / Hace 11 days

This is the reason I and lots like me sold up !! Too little too late.

+2-

Yogi / Hace 11 days

It’s the responsibility of the Tourism Authority here to identify and fine the illegal rentals. Many of us, as Fred says, have jumped through quite a few hoops and paid for the pain of it to get our ETVs. We also declare taxes and are legally plugged in to the island’s economy. These illegals won’t be paying any tax, won’t have valid rental insurance and don’t have to maintain the standards expected, including those of the covid sanitary protocols. Unaware tourists may not care about it, but it totally discredits the Govt if they don’t do anything about it.

+3-

Fred / Hace 11 days

And the Mallorcan Government made us jump through hoops and swing from trees and Thousands of pound later running back and forth to Palma to get the DRIAT, The Government now open the door to illegal rental , Well ! Mallorca does need the tourists more than ever . perhaps the Tourist and the DRIAT rentals will be appreciated now and the HOTEL lobby will work in harmony with all that bring money into the Lovely island of Mallorca

+21-