Ibiza Town Council is preparing a €4.2 million penalty against a single property allegedly used for unauthorised tourist accommodation. The proposed sanction, equivalent to 75% of the building’s assessed value, would far exceed previous penalties imposed by the municipality.

Ibiza Town Council has announced plans for a proposed €4.2 million urban-planning sanction in a case involving the alleged unauthorised use of a residential property for tourist accommodation.

Mayor Rafael Triguero announced the proposal on Wednesday, 21 October 2026, during the municipal debate on the state of the city. The proposed amount would represent a record penalty in the municipality’s campaign against illegal tourist rentals, although it has not yet been formally approved.

According to the mayor, the proposed sanction represents 75% of the building’s assessed value. The case concerns a single property, rather than a group of apartments or several separate rental businesses.

The announcement comes as housing affordability and the availability of residential accommodation remain major concerns in Ibiza. The municipality has identified inspections and sanctions against unauthorised tourist accommodation as part of its efforts to enforce planning rules and protect the residential use of housing.

Why Is Ibiza Proposing a €4.2 Million Penalty?

The proposed penalty concerns the use of a property for tourist accommodation without the necessary authorisation under the applicable urban-planning rules.

IB3 has reported that the property is a detached house in the Cas Mut neighbourhood of Ibiza. The municipality has not publicly identified the owner, and no individual should be assumed responsible beyond the information established through the administrative procedure.

The proposed €4.2 million sanction is calculated as 75% of the building’s assessed value. This implies a valuation base of approximately €5.6 million for the purpose of calculating the penalty.

That figure should not automatically be interpreted as the property’s sale price or an independently established market valuation. It is the implied assessment base used in the proposed sanction calculation.

The case falls within the framework of Balearic Islands Law 12/2017 on urban planning. Article 167 addresses sanctions for unauthorised uses and changes of use involving buildings, constructions or installations. Where the applicable planning rules do not permit the new use, or permit it only under conditions, the legislation provides for penalties calculated as a percentage of the building’s value, subject to the statutory rules.

The municipality’s proposed 75% calculation falls within the range established for certain unauthorised changes of use, but the final sanction remains subject to the administrative process.

The Proposed Fine Is More Than Five Times Ibiza’s Previous Largest Penalty

The proposed €4.2 million sanction would be substantially higher than the penalties previously announced by Ibiza Town Council for unauthorised tourist accommodation.

Triguero said the municipality had approved four sanctions between 2025 and October 2026, with amounts ranging from approximately €276,000 to €795,000.

One of the largest previous penalties was formally imposed in June 2026, when the Local Government Board approved a sanction of €793,443.74 after rejecting the objections submitted by the entity involved in that case.

That proceeding followed a joint inspection by the Local Police and municipal Urban Planning services in 2024. According to the council, the inspection established that a residential property was being used for tourist accommodation without the required authorisation.

The June sanction was calculated by applying 75% of the building’s value, using the same percentage cited in the new proposal.

The council had also approved two other sanctioning cases in November 2025, with a combined value of €740,239.51.

If the new proposal is approved at the announced amount, it would exceed the previous largest sanction by more than five times. However, a proposed penalty and a formally imposed sanction are legally distinct stages, and the final amount could depend on the outcome of the procedure.

99 Inspections, 14 Administrative Reports and Seven Properties Sealed

During the municipal debate, the mayor also presented figures on enforcement activity against suspected unauthorised tourist rentals.

The reported figures included 99 inspected homes, 14 formal reports that remain under administrative processing, and seven properties sealed in connection with suspected illegal tourist accommodation.

These figures represent different stages of enforcement. An inspection does not automatically result in a fine, and a formal report that remains under processing is not the same as a final sanction.

Likewise, sealing a property is a separate enforcement measure and should not be interpreted as confirmation that a financial penalty has already been imposed in every case.

The municipality has been increasing its inspection activity to identify properties being used for tourist accommodation without the necessary authorisation. The proposed €4.2 million case represents the largest amount announced in this campaign so far, but the outcome remains pending.

How the Case Fits into Ibiza’s Housing Debate

The proposal comes as housing remains one of the principal concerns raised by residents in Ibiza Town.

The municipality argues that the unauthorised conversion of residential properties to tourist accommodation can undermine compliance with planning rules and affect the availability of homes intended for residential use.

The enforcement campaign is therefore being presented alongside wider municipal measures intended to increase housing availability, including plans for protected, social and price-limited homes.

However, the proposed penalty concerns an alleged planning infringement involving one property. The announcement does not establish how many homes will become available for residential use as a direct result of this particular case, nor does it quantify the wider effect of the enforcement campaign on rental prices.

The distinction matters: the proposed sanction is a concrete administrative action, while its broader effects on housing supply will depend on the outcome of individual cases and other housing measures.

What Happens Next?

The proposed €4.2 million sanction must still complete the municipal approval process. The mayor said it was expected to be considered by the Local Government Board in the coming weeks.

Until the relevant decision is adopted and the administrative procedure is completed, the €4.2 million amount should be described as a proposed penalty, not a fine that has already been definitively imposed.

The case nevertheless marks a significant development in Ibiza Town Council’s enforcement against unauthorised tourist use of residential property. If approved at the announced amount, it would represent a major increase on the sanctions previously imposed by the municipality.

For now, the confirmed development is the announcement of the proposed sanction, the calculation based on 75% of the building’s assessed value, and the wider enforcement figures presented by the mayor.

The next key step will be the formal decision by the Local Government Board, which will determine whether the proposed amount is approved and what happens next in the administrative proceeding.