The Ibiza real estate landscape has undergone significant changes following the approval of Decree Law 3/2024 on 24 May 2024. This law allows property owners to legalize properties on rural land on Ibiza that were built without planning permission. Many buildings on the island, constructed more than eight years ago, now have the opportunity to become fully legal, eliminating any risk of government sanctions. This change offers a chance for property owners to regularize their buildings and constructions, which has been a concern for many over the past decade.
Key Features of the Decree Law 3/2024
The decree primarily focuses on resolving the issues of illegal or non-compliant constructions on rural land. It applies to buildings, installations, or extensions built without proper planning permission that have existed for more than eight years. Here are some of the most significant aspects of the law:
- Time-barred buildings: Properties constructed more than eight years ago can now be legalized, as long as they meet the requirements set forth in the decree.
- Three-year window: Property owners have a maximum of three years to legalize their properties, starting from the date the decree came into force.
- Fines and penalties: Legalizing a property comes with financial penalties based on the property’s value and the time of legal submission.
- Limitations on usage: Legalized properties will not be eligible for tourist rental licenses, limiting their potential as rental properties.
Important Deadlines and Penalties
The decree law imposes a structured penalty system for legalizing properties on rural land on Ibiza. The earlier the owner submits the application, the lower the penalty:
- First year: A 10% penalty on the value of the property if legalized within the first year of the decree’s validity.
- Second year: A 12.5% penalty for applications made in the second year.
- Third year: A 15% penalty in the third year, which is the final window to apply for legalization.
After the three-year period, property owners will no longer have the chance to regularize their properties under this law.
Exclusions from Legalization
While the law offers a valuable opportunity for many property owners, not all properties qualify for legalization under Decree Law 3/2024. Specific properties are excluded, such as:
- Agrotourism and rural hotels with illegal constructions.
- Properties in areas of public domain or those slated for expropriation.
- Protected rural land (ANEI): Only buildings constructed before 10 March 1991 are eligible for legalization.
- Properties on protected rural land: These must have been built before 29 May 2014, based on the Land Management and Use Law.
Benefits of Legalizing Properties on Rural Land on Ibiza
The new law provides several advantages for property owners looking to legalize properties on rural land on Ibiza. These benefits include:
- Increase in property value: Legalizing a property makes it fully compliant with local regulations, significantly increasing its market value.
- Easier sale process: Having all necessary documentation in place speeds up the process of selling the property.
- Peace of mind: Legalization removes the risk of government intervention, providing security to property owners.
Moreover, legalizing a property ensures that future renovations and extensions can be done legally, giving property owners more flexibility in managing and improving their investments.
Penalty Discounts for Lower-Income Households
The decree law also considers property owners with lower annual incomes. It offers discounts on the penalty fees for those with limited financial resources:
- 50% discount: Available to property owners earning less than €33,000 per year.
- 25% discount: For incomes between €33,000 and €52,800 per year.
Requirements for Legalization
To legalize properties on rural land on Ibiza under Decree Law 3/2024, property owners must follow a strict procedure, which includes:
- Submitting a technical project: The application for legalization must include a detailed technical project. This project must describe measures to reduce environmental impact, such as energy efficiency improvements and water conservation strategies.
- Proof of construction date: Owners must provide legal evidence, such as aerial photographs or invoices, proving that the building was constructed more than eight years ago.
- Payment of fines: The penalty fee must be paid according to the property’s value and the year of application.
Impact on Tourist Rentals
One significant limitation of this decree is that legalized properties on rural land will not be eligible for a tourist rental license. This rule is intended to control the growth of short-term rental properties and preserve the island’s character. The restriction must also be recorded in the land registry to ensure transparency in future sales.
Conclusion: Take Action Now
The 2024 decree law offers a rare opportunity for property owners to legalize properties on rural land on Ibiza that were previously considered illegal. With the three-year window, it’s essential to act quickly to minimize penalties and ensure compliance. Legalizing a property not only increases its value but also provides peace of mind and eliminates future legal risks.
To ensure your property complies with the new regulations, contact experts like Hoy Hoy Ibiza. They can guide you through the process and help you make the most of this new legal opportunity.
For further reading, you can explore similar rural property regulations on the official Balearic Islands Government site.