As of today (Wednesday, April 16), illegal holiday lets in the Balearics will be liable to fines of up to 500,000 euros. There has been a 25% increase in fines, which now range from 5,000 for the least serious to 500,000 for the most serious.
Severity of the fine is determined by various factors, e.g. repeat offences or if the property is subject to a form of price control (VPO properties, for instance). The highest profile cases and the ones to have attracted the highest fines have involved whole buildings with apartments let out to tourists illegally.
The Balearic Government's tourism containment decree includes revised provisions for illegal lets. One concerns the involvement of local police forces and the state security forces - Guardia Civil and National Police - in tourist inspection tasks and, above all, in the fight against illegal accommodation.
In certain cases, fines can be reduced by eighty per cent if owners agree to make their properties available for an affordable rent scheme controlled by the government.
The new fines regime comes at a time when it is evident that illegal holiday lets continue to be advertised on Airbnb. The Council of Mallorca says it is well aware of the situation. "The tourism department is currently in talks with Airbnb to reach an agreement with the aim of removing as many illegal listings as possible." One aspect of this is the removal of ads that are clearly illegal; these include caravans and tents.
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When will the govt act to change the law that gives squatters better rights and protection than landlords? The vast majority of landlords will not rent out for residential because it pays far less than short term holiday and they won’t risk having to stump up for squatters. I have not heard of anyone being fined for illegal letting and you’d think that there would be tons of publicity about it to dissuade others. But not a peep.
JamesIf a property owner finds themself in this position, it's because they have broken the law by illegally renting a property - so, one could say it would be karma. Anyway, I believe that these government controlled rental schemes would also be backed by the government who will guarantee the payment of the rent. If I'm wrong, I stand corrected. Finally, I will have to assume that all the negative reactions my comment will undoubtedly bring must be from people who are in favour of illegal holiday lets!
"In certain cases, fines can be reduced by eighty per cent if owners agree to make their properties available for an affordable rent scheme controlled by the government." And what happens when the tenant refuses to pay and refuses to leave the property? There's no protection for homeowner rights.
They have been fining people for illegal lets for year and it has made no difference no matter what the amount is as they seems unable to make it stick.
To have the effect they want (which is to add more properties onto the affordable lettings market) they must also outlaw tourist stays in private accommodation of less than 30 days. This measure will greatly help to control the market.
" In certain cases, fines can be reduced by eighty per cent if owners agree to make their properties available for an affordable rent scheme controlled by the government". Straight out of North Korea. Brilliant. Coincidentally can we get some stats on actual fines for illegal holiday lets or the nationalities of the people caught ?