The Seventh Additional Provision of Decree Law 3/2024, of May 24, on administrative simplification and rationalization of the public administrations of the Balearic Islands, published in BOIB no. 71 of May 28, 2024, has established an important extraordinary procedure for the legalization of buildings, constructions, facilities and uses on rural land in the Balearic Islands.
Note that legalization is possible “without the conditions and urban parameters generally applicable to buildings on rural land being applicable.“, and grants “all rights and duties inherent to the works carried out under license”.
Legalization is, without a doubt, a great opportunity for many owners of properties on rural land in which works have been carried out without having obtained the corresponding license, or who are developing uses that are not in accordance with the administrative title obtained. It is known, for example, the enormous number of homes that exist on rural land in Mallorca and that have been built totally or partially without a building permit, or that lack the enabling title to be used properly as homes.
It is foreseeable that this extraordinary legalization procedure will be very well received, as it will confer enormous legal security not only to the owners of homes or other types of constructions on rural land, but also to the potential buyers of said properties, therefore increasing their value.
However, the possibility of benefiting from this extraordinary legalization procedure can pose significant legal problems and risks. Indeed, there will be many cases in which the classification of the land is controversial, or in which the recent or staggered execution of works, even of minor importance, on the property may call into question whether they can validly benefit from this legalization procedure.
Therefore, we understand that it is highly recommended that owners obtain specialized advice before trying to resort to this type of procedure. It cannot be ignored that, through these procedures, it is the interested party himself who is informing the Administration of the existence of certain infractions, thus exposing himself to being held, where appropriate, certain responsibilities.
Next, we look at the main aspects of this extraordinary legalization procedure:
1. What can be legalized?
In general, existing buildings, constructions and uses on rural land can be legalized for which, as of May 29, 2024, it is no longer appropriate to apply measures to reestablish urban planning legality.
2. Can it be applied to land included in the scope of application of Law 1/1991, of January 30, on natural spaces and urban planning regime of the special protection areas of the Balearic Islands?
Yes, although in these cases it will be understood that the action to reestablish urban legality has expired if the completion of the building, construction or installation or implementation of use prior to March 10, 1991 is proven.
3. What happens regarding the uses or changes of use linked to buildings, constructions or facilities that determine the commission of an infraction?
In these cases, to understand that the action to reestablish urban legality has expired, the following rules must be followed:
- -For uses implemented before May 29, 2014, the prescription period begins from the date of implementation.
- -For uses implemented after May 29, 2014, the prescription period begins from the end date.
4. How is legalization requested?
The interested person must request an extraordinary legalization license from the corresponding city council, attaching a technical project that must include certain environmental measures.
5. How long can legalization be requested?
For three years.
6. What are the associated costs of legalization?
Legalization is subject to:
- a) to pay themratesand of the sametaxesprovided for in the regulations for new buildings, constructions or installations; and
- b) upon payment of aeconomic benefit, corresponding to a percentage of the material execution cost of the building, construction or installation object of the legalization.
The percentage to apply is:
- a) 10% if legalization is requested in the first year of the validity of this procedure;
- b) 12.5% if requested in the second year;
- c) 15% if requested in the third year.
However, significant reductions are planned for applicants subject to personal income tax with a lower tax base.
7. Are there exceptions to the possibility of accessing the extraordinary legalization procedure?
Some exceptions are foreseen. For example, the extraordinary legalization procedure is not applicable to buildings, constructions or facilities subject to expropriation, or located in the public domain.
At Araújo&Benetti we are specialists in Administrative, Urban Planning and Real Estate Law, so do not hesitate to contact us if you require advice in this area.
***
The content of this Alert is for informational purposes only. Any decision or action based on its content must be subject to appropriate professional advice.
