Ibiza is an island in the Mediterranean with a rich history and culture. From the old town with its narrow streets to its beautiful natural landscapes, the island has a lot to offer visitors. Over the years, Ibiza has become a popular tourist destination with an ever-growing diverse community, and it has also attracted a specific niche market: rental properties.
If you’re interested in buying a property in Ibiza and then renting it out, it’s important to be aware of the current legislation. There are specific laws for the rental market on the island, and it is vital to be aware of them before you start.
In short, if you’re thinking of renting a property in Ibiza, there are many things to consider. From legislation to the market itself, it’s important to be informed so that you can make the best decisions for yourself and your property. With a little research and a clear understanding of the local laws, you can start to take advantage of the rental market in Ibiza and make your property a profitable investment.
What is a Tourist Rental Licence in Ibiza?
An Ibiza Tourist Licence is a permit required by the Law of Urban Leases (LAU) in order to be able to rent properties on a short-term basis to tourists on the island of Ibiza. This law specified the need for an ETV (Estancia Turística en Viviendas) tourist licence which allows the property to be offered to tourists and advertised on tourist channels.
However, this law underwent significant changes in the summer of 2017 and it became much more difficult to obtain the necessary permit for tourist rentals.
Currently, many properties in Ibiza are unable to obtain a tourist rental licence due to the complexity of the requirements and stricter regulations.
This has affected the holiday rental market in Ibiza, as many properties cannot be offered to tourists for short-term rentals. It’s important to be aware of these regulations before considering holiday rentals on the island.
How do I apply for a tourist rental licence?
In order to obtain a tourist licence in Ibiza, the property must meet certain requirements. One of them is to obtain a certificate of habitability, which guarantees that the property meets the minimum standards of habitability.
The location of the property is also an important factor, as it must be in a tourist area that meets planning criteria and does not compromise local resources.
It’s important to note that if the property has received a previous sanction for a serious infringement of the holiday rental licensing law, it will not be able to obtain a tourist licence until the sanction has been complied with and legality has been re-established. To verify that there are no pending sanctions, a “certificate of the non-existence of urban planning infringement” must be requested.
Another requirement is that the property must be at least five years old and have been used as a private residence during that period.
Furthermore, an energy certificate is required to show that the building complies with certain energy efficiency specifications, with an F rating for buildings constructed before 31/12/2007 and a D rating for buildings constructed after that date.
Therefore, it’s recommended that owners who are interested in obtaining a tourist licence should inform themselves properly and get advice from a professional in the field. A Real Estate Personal Shopper could be a good option, as they know the real estate market and all the necessary procedures.
Is Ibiza still a good investment?
The Ibiza property market has seen a steady increase in property prices in recent years and this trend continues today.
Especially in the aftermath of the COVID-19 pandemic and the new living conditions, many people are looking to live in places with a good climate, close to nature and with a high quality of life.
As a result, it is expected that more wealthy individuals will settle in Ibiza, making it a high-end market. Furthermore, given the limited supply of property, it may be the right time to consider investing in Ibiza.
