Buying to let in Mallorca: what you need to know about holiday rentals
Licences, flats in apartment buildings, owners' associations, taxes and alternatives such as seasonal lets: the essentials before buying a home in Mallorca to rent it out.
Many buyers, especially from Germany, look for a home in Mallorca that they can enjoy for a few weeks a year and rent out the rest of the time. It can be done, but holiday rentals in the Balearic Islands are tightly regulated, so it pays to know from the start what is and is not allowed.
No licence, no holiday lets
To rent a property to tourists for short stays you must be registered in the tourism register of the Consell de Mallorca and hold a licence number. That number must appear in every advert, and platforms such as Airbnb or Booking remove listings without one. Since 2025, short-term lets must also be entered in Spain's national rental register (Registro Único de Arrendamientos).
Fines for renting without a licence are high, running into tens of thousands of euros, and inspections are frequent.
Flats in apartment buildings: practically closed
In Mallorca it is now very difficult, in practice almost impossible, to obtain a new licence for a flat in a building with several homes. For houses and villas, the Consell's zoning decides where holiday lets are allowed, and you also have to buy "tourist places", which are costly.
So if you want to rent to tourists, the safest route is to buy a property that already has a valid licence. Before signing, check:
- The licence number in the official register and that it belongs to that property.
- How many places it is authorised for.
- That the licence passes to the new owner, and what that requires.
- That there are no open proceedings or fines.
The owners' association matters too
Since 2019 an owners' association can restrict or set conditions on holiday lets in the building with a three-fifths majority. Ask for the statutes and the latest minutes before you buy.
Tax on rental income
As a non-resident you pay Spanish Non-Resident Income Tax on rental income: 19% of net income (after expenses) if you live in the EU, and 24% of gross income otherwise. Returns are filed periodically, usually through a gestor. You will also need to declare the income in your home country; the double taxation treaty prevents you paying twice.
Alternatives without a tourist licence
- Seasonal lets: contracts of a few months for people who come to work, study or spend the winter. Legal without a tourist licence as long as the purpose is not a holiday and this is properly documented.
- Long-term lets: demand in south-west Mallorca is high. Income is steady, though the tenant can extend the contract for up to five years.
- Own use: many families use the home for a few months a year and have a property-care service look after it the rest of the time.
Our advice
Decide first how you want to use the property, then search accordingly. There are licensed houses in and around Peguera, but they are few and sell at a premium. An independent lawyer should always check the licence before completion.
Looking for a licensed home or one for seasonal lets?
Ericsus & Falk knows the market in Peguera and south-west Mallorca and will tell you which options really exist. Browse our properties or call us on +34 656 811 145.
Cover photo: Liilia Moroz, public domain (CC0), Wikimedia Commons. This article is for guidance only and is not legal advice.