Local authorities in Ibiza have confirmed a massive fine of almost €800,000 against the owner of a property being used as an illegal holiday let for tourists without the legally required licence.

The Ibiza Town council ratified the penalty after rejecting appeals submitted by the property owner during legal proceedings linked to urban planning violations.

In a statement they said that illegal holiday lets damage access to housing for residents, create problems for neighbourhood communities and generate unfair competition within the tourism sector.

The fine totals €793,443, equivalent to 75% of the property’s value, after inspectors discovered the home had been converted from residential use into tourist accommodation without permission.

The case stems from joint inspections carried out in 2024 by Local Police and town planning officials, who found the property was being rented out to tourists in breach of current planning regulations.

Under Balearic Islands urban planning laws, the offence is classified as serious, with penalties ranging from 50% to 100% of a property’s value when an unauthorised change of use is detected.

Ibiza’s councillor for urban planning, Juan Flores, defended the severity of the sanction and warned that inspections would continue across the island.

“Anyone using homes for tourist rentals without the proper authorisation should be aware that Ibiza Town Hall will act firmly,” he said.

Authorities say they will continue stepping up inspections and sanctions in an effort to stamp out illegal tourist rentals across the island.

The issue of unlicensed holiday accommodation has become increasingly controversial across Spain’s most popular tourist destinations, including here in the Canary Islands, particularly in areas where rising rents and housing shortages are affecting local residents.