What you need to know about Mallorca’s amnesty for properties in legal limbo

In simple terms, this legislation introduces a transitional regulation allowing the legalisation of certain buildings within a three-year window. The last opportunity for a similar amnesty was 20 years ago, making this a very rare occasion that may not happen again.

“The amnesty is a fantastic opportunity for the many affected homeowners in Mallorca who have invested in rustic properties with inherited ‘illegal’ building elements,” confirms Lucy Adamson, hc/ Mallorca Living Property Specialist. “Often, these illegalities stemmed from missing paperwork or not getting proper permissions due to long waits and backlogs at town halls.”

The recent enactment of the Decreto Ley de Simplificación y Racionalización Administrativas by the government of the Balearic Islands marks a significant change in urban planning regulations. The law affects older properties that have lived in a legal grey area for some time, often built on “rustic land,” causing uncertainties and limitations on renovations or further construction.

The new legislation offers a pathway to legalisation for structures older than eight years, particularly those built on “rustic land.” Although building on rustic land is permitted with specific regulations, lack of legal recognition hampers improvement permissions. The law grants legal status to eligible properties, as long as owners comply with several key regulatory measures.

The introduction of this new law does not imply an automatic endorsement or simplification of the process to legalise unauthorised buildings. It also prohibits using the legalisation structure for tourist accommodation or commercial purposes.

The amnesty is only available for the next three years, so homeowners interested should start the process immediately by consulting a reputable architect. Plans should factor in potential fines, taxes, and architect fees to complete mandatory changes.

“Those who can afford to take advantage of the process will see a significant return when selling, as legalising a property can increase its value by up to 30%, attracting a wider pool of foreign buyers that are normally put off by illegalities,” Adamson adds.

Property owners or promoters must pay the taxes and rates that apply to new buildings for any newly legalised structures. Homeowners will also pay a “financial benefit” to the relevant Town Hall. This mandatory payment is 10% of the value of the legalised structure in the first year, 12.5% in the second year, and 15% in the third year of the law’s given timeframe.

A discount of 50% will be applied to applicants whose taxable income is less than certain thresholds within the past four years. The threshold to qualify for this discount is 33,000 euros in individual taxation or 52,800 euros in joint taxation.

Environmental stipulations have been included in the law as well. To legalise, an architect must create a plan focusing on the environmental quality of the construction. This might require projects to minimise light pollution, decrease energy or water consumption, generate renewable energy, or employ eco-friendly materials and methods. Any water purification systems must align with the Balearic Islands’ Hydrological Plan.

The introduction of this law marks a significant step towards resolving long-standing legal ambiguities surrounding properties on rustic land in the Balearic Islands. It also encourages more controlled and sustainable development, thanks to environmental requirements.

Many homeowners believe that because their house is registered and appears in the land registry that it is legal. Even a certificate of occupancy does not signify whether or not your property is out of ordinance.

Local real estate experts, architects, and property specialists can review properties to determine whether any aspects are noncompliant with urban planning regulations. Property owners who find they may be impacted should seek legal counsel for support in filing the appropriate documents and fees for amnesty, as time is of the essence.