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Ibiza’s new amnesty law 2024

NEW AMNESTY LAW 2024:

New amnesty law for real estate in Ibiza: What it means for property owners and investors?

Ibiza, long renowned for its breathtaking landscapes, world-famous nightlife, and luxurious properties, has always been a hotspot for real estate investment. However, its allure has also brought regulatory challenges, particularly with illegal constructions and non-compliant buildings. In a recent move, the local government has introduced a new amnesty law for real estate in an effort to address long-standing issues with irregular constructions across the island.

This law represents a significant change, aiming to regularise many existing properties that do not currently comply with planning regulations. Here’s what property owners, investors, and potential buyers need to know about the new real estate amnesty in Ibiza.

Why the need for an amnesty law?

The stunning appeal of Ibiza has led to a booming real estate market, which, over the years, has also spurred a number of unauthorised constructions. Many properties were built or expanded without proper permits, leading to a backlog of illegal structures on the island. These unauthorised developments range from private homes to vacation rentals and commercial properties.

The Balearic government and local authorities have been struggling to enforce regulations due to the volume of non-compliant buildings, which are often hidden away in rural or secluded areas. As a result, the new amnesty law seeks to tackle these violations and bring properties into compliance without the need for mass demolition or legal battles.

Key aspects of the new law

The amnesty law offers property owners a window of opportunity to regularise illegal constructions. Here are some of the law’s main features:

  • Limited timeframe: The amnesty is not indefinite. Property owners must apply for legalisation within a set time period, usually within a few years, to avoid future penalties or potential demolition.
  • Eligibility: Not all properties are eligible for legalisation. The amnesty primarily targets buildings that can be brought up to code without major alterations to zoning laws, environmental protections, or public infrastructure. Properties built in protected areas or in blatant disregard of existing regulations may not qualify.
  • Fines and fees: Although the law offers amnesty, owners of illegal constructions will still be required to pay fines or fees. These will likely be lower than the penalties imposed without the amnesty, but they serve to address the past violations.
  • Environmental and safety standards: Even if a building is eligible for amnesty, it must meet basic safety and environmental standards. Owners will need to make necessary upgrades to comply with current codes before full legalisation is granted.

Benefits for property owners and investors

For many property owners, this law represents a golden opportunity to avoid legal troubles and gain full title to their homes or buildings. It also offers peace of mind to those looking to sell, as buyers are often wary of purchasing non-compliant properties due to the risk of future enforcement actions.

For investors, particularly those interested in Ibiza’s lucrative vacation rental market, this law could unlock a wave of opportunities. Once illegal properties are legalised, they can be properly marketed, rented out, or resold without the looming threat of fines or demolition.

Challenges and criticism

While the amnesty law is welcomed by many, it has also drawn criticism from environmental groups and advocates for stricter urban planning. Some argue that the law could encourage more illegal construction, as developers may believe that future amnesties will forgive their infractions. Additionally, there is concern that allowing illegal properties to remain will strain local infrastructure, particularly water and electricity supplies, and could degrade the island’s natural beauty.

Steps for property owners

If you own property in Ibiza and believe it may be eligible for this amnesty, here are the steps you should follow:

  • Consult with a legal expert: It’s essential to work with a lawyer or property specialist familiar with Ibiza’s regulations to determine if your property qualifies for the amnesty.
  • Submit an application: The amnesty process will likely involve submitting an application to local planning authorities, along with documentation proving the property’s current state and history.
  • Prepare for inspections and compliance: Your property may need inspections or upgrades to meet current safety and environmental standards.

When and before which year can you apply for the amnesty law?

The new amnesty law in Ibiza, introduced by Decree-Law 3/2024, allows property owners to legalise homes built on rustic land that do not comply with planning regulations. The key eligibility dates for applying to this law depend on the type of land and when the urban infraction occurred.

  • Common rustic Land: Properties where infractions occurred before June 28, 2016 can be legalised.
  • Protected rustic Land: For properties on this type of land, infractions must have occurred before May 25, 2014.
  • Special protection areas (ANEI zones): Infractions must date back to before March 10, 1991.

The amnesty law also provides a three-year window (until May 2027) to apply for legalisation, with increasing fees each year. In the first year, the penalty is 10% of the property’s value, rising to 12.5% and 15% in the second and third years, respectively. Early application can help reduce costs, and there are financial incentives for individuals with lower incomes.

If you’re considering legalising your property under this law, it’s essential to act within this timeframe to avoid higher penalties.

Conclusion

The new real estate amnesty law in Ibiza offers a pathway to legalising many properties that were previously in a legal gray area. While it provides significant benefits for property owners and investors, it is crucial to act swiftly and ensure compliance with the law’s requirements. With Ibiza’s real estate market continuing to thrive, the amnesty law could be a key factor in shaping the island’s development for years to come.

If you’re considering investing or already own a property on the island, now is the time to seek professional advice and explore the opportunities this law provides.

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