Significant zoning restrictions for new single-family home construction on rural land in Ibiza
Real Estate Law and Tax Issues
It is now a fact that the political landscape is shifting, as evidenced by the numerous reforms and proposals we are seeing in the island’s various municipalities. Another manifestation of this ideological shift—one that affects us more directly—is the recent amendment to Ibiza’s Island Territorial Plan (PTI) by the Island Council, which was approved thanks to the votes of the PSOE and Podem-Guanyem. This is a provisional regulation approved on November 30, 2016, which will take effect the day after its publication in the BOIB and will remain in force for up to three years or until the amendment to Ibiza’s PTI is approved. Among other measures, construction on rural land will be limited to a maximum of 300 square meters of floor area per dwelling and up to 900 cubic meters of volume (including outbuildings). Another measure will be a ban on building homes on subdivided lots, with the exception of inheritances and inter vivos transfers through gifts from parents to children; this reform will prevent the sale of such lots to third parties within 15 years of their subdivision. Likewise, concrete block walls will be prohibited, and in their place, either dry-stone walls or hunting enclosures will be required. There will also be restrictions on the construction of swimming pools.
Expropriation or environmental protection?
That’s a good question, although one thing is certain: by reducing the supply of buildable lots and given the growing demand for this type of housing in Ibiza, it will lead to an immediate increase in the prices of lots with valid building permits or existing homes, and a loss of value for undeveloped lots or those without pending building permits, which will immediately lose their development potential—either temporarily or until the new Ibiza Territorial Plan is definitively approved. In any case, the urban planning landscape is changing rapidly, and it is imperative for any investor to stay properly informed and up to date. This is a new challenge that the team at Bufete Frau Abogados accepts and is prepared to fight for the interests of our clients in Ibiza regarding these highly controversial issues.

