Understanding the New Rustic Land Law in Mallorca

Introduction

In May 2024, the Official State Gazette published Decree Law 3/2024, introducing an extraordinary mechanism for the legalisation of illegal constructions on rustic land in Mallorca. This measure allows for the regularisation of prescribed buildings, even if they do not comply with urban planning parameters. This procedure, valid for three years, requires interventions to reduce light pollution, improve energy and water efficiency, and prohibits tourist rentals of legalised properties.

Recent Legislative Change

On 28 May 2024, the Official State Gazette (BOE) published Decree Law 3/2024 on urgent measures for the simplification and rationalisation of administrative procedures by the public administrations of the Balearic Islands. This ambitious decree affects various administrative fields, making total or partial modifications to around 50 laws and decree-laws.

Legal and Economic Implications

The new extraordinary legalisation mechanism for constructions on rustic land allows for the legalisation of any prescribed work, even if it does not meet urban planning parameters. This procedure is similar to that approved in 2014 with the entry into force of the Balearic Land Use and Planning Law, following a similar scheme: it is an extraordinary regularisation, valid only for three years, and the cost of legalisation increases each year.

Specific Provisions and Requirements

This extraordinary legalisation mechanism includes two important novelties:

• To legalise the dwelling, some type of intervention to reduce light pollution, improve energy or water efficiency, and implement adequate water purification systems is necessary.
• Legalised properties cannot be used for tourist rental, and this restriction must be registered in the Property Registry.

Importance of Fully Legalising a Property

Fully legalising a property is crucial because a partially or totally illegal property cannot undergo “any type of work” in the part that is out of order, according to Article 129 of the Urban Planning Law of the Balearic Islands. This means that any necessary future work, such as repairing a pool or fixing a leaking roof, cannot be carried out legally, which will revive the infraction and the possibility of sanction and demolition order. Legalisation ensures the possibility of carrying out all kinds of maintenance and repair work on the dwelling in the future.

Properties That Can Be Legalised

The extraordinary legalisation procedure can be applied to those buildings, constructions, installations, and uses existing on rustic land that, upon the entry into force of this decree-law, are no longer subject to urban planning legality restoration measures. This includes:

• Constructions out of order for having passed more than 8 years on general rustic land.
• Constructions on protected rustic land, as long as they are prior to 2014.
• Lands included in the Law of Natural Spaces and Urban Planning of the Special Protection Areas of the Balearic Islands, prior to 10 March 1991.

These buildings can be legalised for a maximum period of three years without applying the general urban planning conditions and parameters. This three-year period will start to count, for each of the Balearic Islands, from the moment of the plenary agreement approving the application of this procedure.

Legalisation Procedure

To initiate the procedure, it is necessary to submit an application for an extraordinary legalisation licence, accompanied by a project drafted by an architect. To carry out the legalisation, it will be necessary to undertake works on the property aimed at:

• Reducing light pollution from the property;
• Improving energy or water efficiency;
• Implementing adequate water purification systems (septic tank).

Once the licence application is submitted, the City Council has a period of 6 months to resolve it, with silence being negative, without prejudice to the obligation to resolve and notify expressly. Therefore, although the law determines that there is a 6-month period to resolve, in practice, the municipalities can take longer without this modifying the costs or understanding that it is no longer possible to legalise due to the three-year period having elapsed.

As it is a licence linked to the realisation of certain works, a municipal end-of-work report will be necessary to certify that the corresponding adaptation works have been carried out, without which it will be understood that the property remains illegal.

Legalisation Costs

It is difficult to provide an exact estimate, as there are many factors to consider, from the area to be legalised, the corresponding municipality (since the rates and ICIO are different), to the planned environmental improvement works. The main costs you will face if you want to legalise your home include:

• Architect fees for drafting the legalisation project.
• Payment of the corresponding licence fee.
• Payment of the Tax on Constructions, Installations and Works (ICIO).
• Carrying out improvement works.
• Registration costs in the Property Registry of the restriction on tourist rental.
• Payment of the “economic provision,” calculated on the cost of material execution, as if the work were done anew. This cost increases over the years, thus incentivising owners to legalise as soon as possible:
  • 10% if requested in the first year.
  • 12.5% if requested in the second year.
  • 15% if requested in the third year.

Legalising the property will not be cheap, but from a legal point of view, it is highly recommended due to the legal certainty and revaluation obtained. Regarding this economic provision, the following discounts apply (only applicable to tax residents in Spain), depending on their total taxable base:

• 50% reduction for average taxable bases of the last four years below 33,000 euros (individual) or 52,800 euros (joint).
• 25% reduction for average taxable bases of the last four years below 52,800 euros (individual) or 84,480 euros (joint).

Restrictions on Tourist Rental

The extraordinary legalisation resolution of a property must include the prohibition of using it for tourist stays. This condition must be registered in the Property Registry within three months, along with the new construction declaration deed, if applicable.

The legalisation of constructions on rustic land according to the new Decree Law 3/2024 represents a significant opportunity for property owners to regularise their properties and ensure the possibility of carrying out maintenance and improvement work in the future. Lamas Lawyers, with over 30 years of experience and specialists in real estate law, are at your disposal to offer comprehensive legal and technical advice in multiple languages. Do not hesitate to contact us for personalised assistance and to resolve any queries regarding this new legalisation procedure.