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THE COMMERCIALIZATION OF TOURIST STAYS IN PALMA: THE END OF THE MORATORIUM AND ITS CONSEQUENCES. A NEW SCENARIO.

Last December 31 ended the moratorium introduced during the state of alarm by Decree-Law 8/2020, of May 13, on urgent and extraordinary measures to boost economic activity and administrative simplification in the field of public administrations of the Balearic Islands, to mitigate the effects of the crisis caused by COVID-19, which since its entry into force prohibited the submission of new submissions of intent to start the activity of marketing tourist stays in housing in the municipality of Palma.

 

So, since that date, there is the possibility to apply for new tourist licenses for housing in Palma. But for all types of accommodation or only for some and under what conditions?

 

It is common knowledge that the Supreme Court of Justice of the Balearic Islands (TSJIB), following the disputed administrative action against the development plan of Palma approved by the City Council, has ruled that the absolute ban on tourist rentals in apartment buildings is illegal because it does not comply with the principles of good legislation (necessity, proportionality, and justification), thus annulling the ban and upholding the validity of the remaining provisions of the development plan.

 

However, when it seemed that the door would open for the tourist marketing not only of single-family homes (in their various forms) by the end of the moratorium, but also of "multi-family homes" by the TSJIB ruling, Palma City Hall, in the plenary session of 28. October 2021 made the first approval of the General Plan (PG) and the Detailed Development Plan (POD) of Palma, both documents in which, in total disregard of the content of the TSJIB ruling, not only does not expand the possibility of marketing housing for tourism in Palma but even further restricts it, making this activity extremely difficult.

 

Thus, according to this first approval, only new marketing of tourist stays in housing in the municipality of Palma are allowed under the following conditions:

 

1. in the municipality of Palma, the marketing of tourist stays in single-family houses is allowed only if the established maximum density doesn't exceed.

 

2. on plots of land with single-family houses, the authorization for the marketing of tourist stays in housing is subject to the following cases and modalities:

The dwelling will have to be linked to a preferential agricultural activity, leaving the validity of the ETV license related to the exercise of the preferential agrarian activity. 

 

3. The following areas are excluded, and therefore prohibited, for the commercialization of tourist stays in homes:

 

The newly introduced requirements join a long list. Because who wants to "open" a new ETV in Palma, in addition to the provisions of this new regulation, must comply with all the requirements established in Law 8/2012 on Tourism, Decree 20/2015, which develops this law, and the Plan for Interventions in Tourist Areas (PIAT), and they are not few.

So we are faced with a new scenario, very complex, which de facto means the prohibition of the start of new activities to market tourist stays in most of the existing housing in the municipality of Palma.

At this point, the question arises to what extent this new regulation can be reconciled with the content of the TSJIB ruling issued a few months ago, which, if nothing changes, could remain a dead letter.

We'll see what the future brings.

 

Javier Blas
Jaime López
Illeslex Abogados

 

For more information about the contents of this document, please contact ILLESLEX at info@illeslex.com.

 

©2022 ILLESLEX | All rights reserved.  | This document is a compilation of legal information prepared by ILLESLEX. The information or comments contained herein do not constitute legal advice. The intellectual property rights in this document are owned by ILLESLEX. No part of this document may be reproduced, distributed, transmitted or otherwise used in any form, in whole or in part, without the prior permission of ILLESLEX.

 

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