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Legalisation of housing on rural land in the Balearic Islands: an opportunity for property owners

The recently approved decree-law of May 2024 has opened an important door for the legalisation of buildings on rural land in the Balearic Islands. This transitional regime, which allows the legalisation of buildings for a maximum period of three years, represents a great opportunity for many owners who wish to legalise their properties, while at the same time posing some challenges that need to be carefully considered.
The main aim of this law is to reduce bureaucracy and simplify administrative procedures. It is intended not only to speed up the granting of building permits and the distribution of subsidies, but also to create a framework for the extraordinary legalisation of buildings in the countryside. However, the application of this law is subject to numerous conditions and exceptions that require a detailed analysis of each individual case.

First of all, it is important to know that legalisation only applies to buildings located outside urban areas. Buildings in urban areas, such as Palma, are excluded from this procedure. In addition, the buildings must be outside the scope of any pending legal proceedings and must have exceeded the limitation period, which is between eight and twelve years depending on the location and protection of the area. This framework explicitly excludes properties located in coastal protection areas or road easements, as well as hotel complexes.
As part of the legalisation process, owners must pay a number of fees and taxes to the relevant municipality. These fees are staggered and amount to 10% of the value of the construction project in the first year, 12.5% in the second year and 15% in the third year. The earlier the application for legalisation is submitted, the lower the costs. Furthermore, additional measures, such as improving energy efficiency, may be required to fulfil the environmental sustainability requirements.

One of the most controversial aspects of this law is the ban on using legalised buildings for the marketing of tourist stays. This restriction has caused concern among owners who had previously obtained licences for holiday rentals.
Despite the complexity and associated costs, the legalisation of properties can offer significant benefits. Legalising a building not only provides legal certainty for the owner, but can also increase the value of the property and facilitate future transactions. However, given the complexity of the process and the numerous variables that need to be taken into account, it is highly advisable to seek professional advice.
In this context, our company Omnia Consulting offers comprehensive legal and technical consultancy services in collaboration with specialised architects. This type of support can be invaluable in ensuring that the legalisation process is carried out efficiently and in accordance with the applicable regulations.

In summary, the new law on the legalisation of rural housing in the Balearic Islands represents a unique opportunity for property owners, but also brings with it a number of challenges and requirements that need to be carefully managed. The key to making the most of this opportunity is to understand the regulations in detail and take the right professional advice to navigate this complex process.

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