Mallorca holiday rental licence

Mallorca is popular not only with those who live there — visitors from all over Europe spend their holidays on the island every year. They mostly come between April and October, but increasingly in winter too, to enjoy the countryside at mild temperatures of 13 to 18 °C. That makes Mallorca an attractive destination all year round — including for those letting holiday property.

The legal framework, however, has changed fundamentally. What was once a sideline that could be run with little effort has become a closely regulated business with licensing, reporting duties and strict enforcement. Anyone wanting to let to holiday guests in Mallorca today needs one thing above all: a sound review of the legal position before buying. Attractive properties can be found in Santanyí, among other places; particularly exclusive luxury properties lie in the south-west of the island or in Son Vida near Palma.

A popular arrangement combines personal use and letting: you enjoy your finca in Mallorca for a few weeks a year and let it to guests for the rest of the time. In that way the purchase can partly refinance itself — a way of acquiring a house in Mallorca affordably over the long term. In tax terms: for the letting periods you are taxed on the rental income, and for the remaining months pro rata on the non-resident tax.

What return is achievable depends on location, size, fittings, occupancy and cost structure — and on whether the licence is already priced into the purchase. A model calculation shows the order of magnitude: with a purchase price of 1,000,000 euros, an average daily rate of 350 euros and 150 let days a year, income comes to 52,500 euros. Deducting around 40 per cent for management, cleaning, linen, maintenance, insurance and booking commissions leaves roughly 31,500 euros. That corresponds to a gross return of about 5 per cent and a net return of about 3 per cent — before tax.

What is still missing from this calculation: the Spanish tax of 19 per cent on the net income for owners from the EU and the EEA, the periods of personal use, the risk of vacancy and the cost of running the business if you engage an agency. What matters is a solid calculation that also allows for periods without guests. Remember too the taxes and purchase costs when buying in Mallorca: they amount to 10 to 15 per cent of the price and usually cannot be included when financing your dream home. They have to be available as equity.

The islanders learned first-hand that tourism has its downsides. More and more residential buildings were given over to visitors. They were no longer available to the local housing market and contributed to a marked rise in property prices. On top came large quantities of waste and heavy use of resources, which pushed the island’s infrastructure to its limits.

The Balearic government therefore imposed a moratorium in 2022 that stopped the issue of new places for holiday letting. Since then access has effectively been closed: an attempt to reallocate the remaining roughly 1,060 guest beds failed in 2025. A further allocation procedure ran in 2026; among all applicants meeting every requirement, the order is decided by lot. According to the island council, a new call is not to be expected before 2027.

In other words: if you want to buy a house in Mallorca and let it, you cannot plan on obtaining a new licence. Without a valid licence, letting to holiday guests is unlawful. Penalties apply as soon as you publish a listing without a valid registration number on property portals or booking platforms.

The good news: it is still possible to buy a house in Mallorca and let it to visitors. The condition is that you acquire a property with an existing, valid rental licence. The licence is tied to the property and in principle survives a change of owner — but the change must be properly notified to the tourism authority, and the conditions continue to apply unchanged.

Before buying, check whether the licence really applies to the property being sold and in the form advertised, whether it is not time-limited or already withdrawn, and whether the number of approved places fits your plans. Experienced agents and a Spanish lawyer will compare the land registry, the cadastre, the building permit and the tourism register for that purpose.

If you want to buy a house in Mallorca with a rental licence, look closely — the types of licence differ considerably in what they permit. There are three forms of lawful holiday letting in Mallorca today:

Whether a property can be licensed at all is also decided by the spatial plan PIAT: it sets out in which zones of Mallorca holiday letting is permitted. A property in an excluded zone will not receive a licence even if every other requirement is met.

Would you like to buy a house but are unsure whether the holiday rental licence is genuine and valid? Then be sure to have the matter checked by an agent or a specialist lawyer. The following points give a first indication:

• The property has a registration number of the pattern ETV/1234 that matches the type of licence.
• The licence is entered with the island council of Mallorca or in the Balearic tourism register and issued for the specific address and cadastral reference.
• The number of approved places and the type of licence match what was promised to you in the listing.
• No enforcement proceedings for unlawful letting are pending against the property.

Beware of other people’s numbers: the island council now acts specifically against providers who use other people’s licence numbers or false registrations. A number quoted in a listing is therefore no proof in itself — what counts is the entry for exactly this property.

Once you have found a house with a rental licence, the point is to keep it. If you or the previous owner breach the conditions, the authority can withdraw the licence. To prevent that, bear the following points in mind:

Anyone hoping for a lenient approach from the authorities should know the latest developments. Under the Ómnibus act that came into force in the summer of 2026, the Balearic government can impose daily penalty payments of between 500 and 5,000 euros on owners who continue letting to tourists despite an official order — in addition to the later sanction for the unlawful activity itself. In particularly serious cases sanctions can reach 500,000 euros. After the third notice the case is passed to the public prosecutor.

Enforcement is intensifying too: by July 2026 the island council of Mallorca had opened 146 proceedings — around 40 per cent more than in the same period the previous year. The first cases of repeat offenders were to be handed to the public prosecutor in the autumn of 2026. For buyers that means a property without an impeccable licence is no longer a calculable risk.

From 1 July 2025 a national registration number for short-term lets was to become mandatory throughout Spain, issued through the land registry and brought together in a digital portal of the housing ministry. Spain’s supreme court (Tribunal Supremo) annulled the central provisions of that regulation in judgments of 19 and 21 May and 1 June 2026 — including the landlords’ obligations, the registration procedure and the verification of the registration number.

For Mallorca that changes nothing about the core requirement: the Balearic rental licence remains mandatory, and booking platforms remain obliged under EU law to object to listings without a valid registration number. Because the legal position is moving here, have the current state checked again before you start letting.

Important to know: the requirements for holiday letting in Mallorca are continually adjusted — by the regional government, the island council and the municipalities. Before buying a property with a rental licence, always have the position as at that day checked. Experienced agents and a Spanish lawyer will support you in doing so.