HOW TO MAKE A RESIDENCE IN MENORCA PROFITABLE WITH SHORT-TERM HOLIDAY RENTALS
There are specific regulations and laws applied to holiday rentals in Menorca, both in terms of the types of properties that can be rented as well as the areas where the licences to rent are authorized.
So, if you are thinking about buying a property in Menorca to rent out as a holiday rental, make sure you know all the information about the Tourist Rental Licence (ETV) and the basic rules pertaining to short-time rentals in the Balearic Islands.
WHAT ARE HOLIDAY RENTALS AND WHEN IS A TOURIST RENTAL LICENCE NEEDED?
Unless a different purpose can be proven, the rental of an entire property for days or weeks, the maximum being one month, are considered Holiday Rentals.
Of course in these cases, as the law related to long-term rentals (LAU) cannot be applied anymore, the owner needs a Tourist Rental Licence, a document that authorizes the realization of tourist activities, in order to rent out the property.
Renting a residential property without meeting the necessary requirements is considered a serious infraction of these laws and a fine of between €20,001- €40,000 can be applied for illegal advertising, hiring or marketing of a tourist stay.
WHAT TYPES OF PROPERTIES CAN BE LICENCED AS HOLIDAY RENTALS IN MENORCA?
Today the Tourism Law does not distinguish between different types of properties.
Therefore, in theory, any property can apply to be a holiday rental, provided that it complies with regulations and requirements of the Balearic Law.
Therefore, also residential dwellings in multi-family buildings can also apply for the licence.
However, in practice, renting apartments in Menorca is possible only if and when the Regulations of the Owners’ Association expressly permits short-term rentals. When this is not specified in the community regulations but is approved by more than 50% of the owners, the regulations must be updated and submitted to the Registro de la Propiedad (Property Registry).
It is important to note that to qualify for the licence, the property must be rented in its entirety (i.e. it is not possible to rent rooms within a property).
Depending on the type of property, there are three types of Tourist Rental Licences that can be applied for:
- ETV365-Un: is the necessary licence for detached and semi-detached single-family homes. The registration for this licence does not expire and rentals are permitted all year round.
Independent dwellings located in multi-family buildings (apartment blocks and flats) subject to the Ley de la Propiedad Horizontal (law concerning the division of properties in buildings) are not considered single family homes.
- ETV365-Pluri: is the necessary licence for homes and apartments in multi-dwelling buildings. This licence is valid for five years and can be renewed. Rentals are permitted throughout the entire year.
- ETV60: is the necessary licence for properties where the owner is registered (in the empadronamiento as a resident) as living in. This licence is valid for five years and can be renewed, however these types of properties can be rented out only for a maximum of 60 days per year and will have to be marketed directly, and not via a 3rd party rental manager.
The maximum number of properties that are owned by one person, group of owners, or a company that can be legally rented out is 3 or less.
Moreover, nowadays there’s a limit for tourist rentals and a maximum number of tourist rentals available on each island that has been established. Once the limit has been reached, new licences will not be granted even if all the requirements are met.
WHEN ARE HOLIDAYS RENTALS NOT PERMITTED?
Properties will not be permitted to be rented out as holiday rentals if one or more of the following conditions subsists:
- The property is or has been subject to government protection (VPO).
- The property is located on protected rustic land.
- The Intervention Plans in Tourist Areas – PIATs (Planes de Intervención en Ámbitos Turísticos) or the Insular Territorial Plans – PTIs (Planes Territoriales Insulares) prohibits or restricts the renting out of properties.
- A sanction has been imposed, and is related to the property, for serious infringement of the holiday rental laws, and the legal right to rent has not been restored.
- The Homeowners’ Association (Asociación de Propietarios) does not permit holiday rentals.
- The accommodation is not offered in its entirety, as it is forbidden to rent rooms.
WHERE ARE HOLIDAY RENTALS ALLOWED ON MENORCA?
Regardless of the type of housing used for holiday rentals, the property must be located in specific “tourist areas”, in accordance with the urban zoning of the island.
Therefore, licences are not granted for properties in the main towns and villages, or on rural land.
Properties that already had a rental license prior to the changes applied to the rental laws are not affected, regardless of where they are located.
Today, in Menorca, Tourist Rental Licenses are granted in
Municipality of Mao: Cala Canutells, Binidali, Es Murtar, Cala Mesquida, Es Grau
Municipality of Es Castell: Sol de Este, Cala San Esteban
Municipality of Sant Lluis: Sa Sivina de Baix, Punta Prima, Biniancolla, Binibequer Vell & Nou, Binisafuller, Binisafuller Playa, Son Ganxo, Cap d’en Font, S’Algar, Cala Alcalfar
Municipality of Alaior: Cala en Porter, Son Bou, Sant Jaume, Torre Soli Nou
Municipality of Es Migjorn: Santo Tomas
Municipality of Es Mercadal: Son Parc, Arenal d’en Castell, Punta Grossa, Port d’Addaia, Coves Noves, Na Macaret, Playas de Fornells, Fornells, Ses Salines
Municipality of Ferreries-Ciutadella: Cala Galdana, Serpentona
Municipality of Ciutadella: Son Xoriguer, Cala en Bosc, Cap d’Artrutx, Cala Blanca, Santandria, Son Blanc, Sa Caleta, Son Carrio, Son Crisses, Cala en Blanes, Torre del Ram, Cales Piques, Cala Morell
WHAT ARE THE REQUIREMENTS FOR A PROPERTY TO OBTAIN A TOURIST LICENCE?
In order to apply for a holiday rental licence in Menorca, the Consell Insular de Menorca has published a list of minimum requirements a property must meet in order to obtain a tourist licence.
If the property is part of a Community of Owners, guests will have to respect the Residence Community Living Standards with its basic rules. They will also have to be informed of all the details related to the proper use of services and common areas, and sign the agreement to confirm that they have been notified.
In addition, the owner or rental manager will have to provide a 24-hour telephone contact number in order to be able to report serious incidents that may occur.
Moreover, all holiday rental properties must offer, directly or indirectly, specific services (like the periodic cleaning, a supply of basic household goods, installations maintenance…) that can be determined through the Quality Plan (Plan de Calidad).
Property owners can also find a list of essential equipment and optional extras that a property can benefit by accumulating extra points.
HOW IS A TOURIST RENTAL LICENCE IN MENORCA APPLIED FOR?
If you wish to apply for a tourist licence in Menorca, you will have to contact the Consell Insular in person or online, if you have an electronic signature. Also, you will need to submit the corresponding declaration for the start of the tourist activity (DRIAT), in which you must show compliance with the requirements established in the current regulations, together with the registration as a tourism business or establishment, personal identification documents, a copy of the property’s insurance policy and, in the case of apartments, proof that the activity is permitted by the Residential Community of Owners.
If the property or the owner does not comply with the established regulations once the DRIAT is carried out (i.e. any inaccuracies, falsifications or omissions are detected) it will imply the suspension of the rental activity and the final cancellation of the registration.
A disciplinary procedure will also be carried out to place charges against the interested party (a sanction or fine could be placed).
WHEN CAN HOLIDAY RENTALS START UP?
Once all the required paperwork is submitted and there is confirmation that the property meets the requirements and is well equipped, the property can now be advertised.
Once approved, the ETV plaque with the licence number will have to be visible on the property.
In the event that a property with a tourist licence is purchased, the new owner will simply have to notify the authorities of the change of ownership.
If you are thinking about buying a property with a tourist licence in Menorca, have a look on our website and contact us to arrange a viewing or just to receive further information and our recommendations.