New extraordinary legalization mechanism for rustic properties in Mallorca.

Yesterday, May 28, 2024, the BOE published Decree-Law 3/2024, introducing urgent measures for administrative simplification and rationalization by the public administrations of the Balearic Islands. This ambitious decree, amending about 50 laws and decree-laws, includes a special procedure for legalizing constructions on rustic land as outlined in the seventh transitional provision.

What Is the Extraordinary Legalization Procedure?

The extraordinary legalization procedure allows for the legalization of any construction that has prescribed, even if it does not meet current urban planning parameters.

“The procedure is similar to the one approved in 2014 with the entry into force of the Land Use and Planning Law of the Balearic Islands, but with two key new features: the requirement for environmental interventions and the prohibition of using the property for tourist rental.”

Main Features of the Procedure

• Extraordinary Regularization: Allows the legalization of out-of-order constructions.

• Limited Duration: Only valid for three years.

• Increasing Cost: The cost of legalization increases each year.

New Features:

1. Environmental Interventions: It is required to make improvements in energy and water efficiency, reduce light pollution, and implement adequate water treatment systems.

2. Tourist Rental Prohibition: Properties legalized cannot be used for tourist rentals, and this limitation must be registered in the Property Registry.

Why Completely Legalize a Property?

Legalizing a property ensures the ability to perform all types of maintenance and repair works in the future.

“The prohibition on performing works on parts out of order remains even after the 8-year prescription period, according to Article 129 of the Urban Planning Law of the Balearic Islands.”

This means no legal repairs can be made on the illegal part, potentially reactivating the infraction and leading to sanctions and demolition orders.

Which Properties Can Apply?

Eligible properties include constructions that are no longer subject to urban planning legality restoration measures, such as:

• Out-of-order constructions on rustic land for more than 8 years.

• Constructions on protected rustic land before 2014.

• Lands under the Law of Natural Spaces and Urban Planning Regime before March 10, 1991.

How Is the Procedure?

To start the process, follow these steps:

1. Application for Extraordinary Legalization License: Submit the application along with a project drafted by an architect.

2. Perform Environmental Works: You must undertake works that improve energy and water efficiency and reduce light pollution on the property.

3. Resolution Period: The City Council has 6 months to resolve, with negative administrative silence, although in practice it may take longer.

“A municipal final work approval is necessary to confirm that the adaptation works have been completed, without which the property will still be considered illegal.”

How Much Will It Cost to Legalize My Property?

Legalization costs vary depending on several factors:

• Architect fees.

• License fee.

• Tax on Constructions, Installations, and Works (ICIO).

• Environmental improvement works.

• Property Registry inscription costs.

• Economic provision: Calculated based on the material execution cost, increasing each year.

Costs of the Economic Provision:

• 10% if requested in the first year.

• 12.5% if requested in the second year.

• 15% if requested in the third year.

Legalizing is not cheap, but it is recommended for the legal security and property value increase it provides.

“Discounts on the economic provision apply to tax residents in Spain, depending on their total taxable base.”

• 50% reduction: Average taxable bases < €33,000 (individual) or < €52,800 (joint).

• 25% reduction: Average taxable bases < €52,800 (individual) or < €84,480 (joint).

Given that some work is required, the total cost cannot be known a priori. However, the website legaliseyourhomemallorca.com, offers some estimates of the cost of the legalization licence and fine in the first year (10%), depending on the surface area to be legalised. To these amounts, it is necessary to add the cost of energy or water efficiency improvement works, noise pollution reduction and purification system that may be necessary depending on the situation of each property, as well as the architect's fees.

Area to legalise	Estimated costs (license and 10% fine)
25 m2	Between 4.600 € and 5.900 €
50 m2	Between 9.200 € and 11.800 €
100 m2	Between 17.500 € and 22.500 €
200 m2	Between 44.600 € and 57.000 €
300 m2	Between 67.00 € and 85.700 €
500 m2	Between 111.500 € and 142.000 €

It is important to note that not only the construction must be legalised, but also all terraces, swimming pools, etc., as they count towards the occupancy parameter, and their legalisation will allow us to maintain, repair and even replace them over time.

Can I Use the Legalized Property for Vacation Rentals?

No, the extraordinary legalization resolution must include a prohibition on using the property for tourist rentals. This condition must be registered in the Property Registry along with the new building declaration deed if applicable.

Currently, if you already have a license, you will lose the permit to operate the ETV, although some lobbies have started putting pressure to keep the licenses already granted and that this limitations only affects properties that don't have already the ETV permit.

Which professional should I ask to carry out a legalisation?

Contrary to what it may seem, the urban legalisation of a property is not the work of a lawyer, but of an architect. In a legalisation, as in a new construction project, the architect has to draw up a project and process the corresponding licence, which will result in the legalisation of the property. Therefore, we recommend contacting architects specialised in legalisations, such as legaliseyourhomemallorca.com, who will be able to help you with the legalisation process.

After the legalisation, it may be advisable to regularise the registration of the property, granting the corresponding title deed and registering it in the land registry, so that the legal description of your property, the urbanistic situation and the physical situation are in accordance. We will be pleased to help you in this process.