Holiday rentals in Mallorca

Legal changes and uncertainty

Recent legislative changes have raised many questions and created uncertainty among property owners regarding holiday rentals. Below you will find general information about the holiday rental licence as well as many useful details on the topic.

General information on Holiday Rentals

Holiday rental landlords must fulfil certain requirements, including:

• Any staff must be officially registered.

• Taxes such as VAT and the ecotax must be paid.

• In accordance with general safety guidelines, the identity and length of stay of each guest must be reported to the police.

• Guests must follow public regulations and existing house rules (e.g. in residential complexes). In the case of violations, the landlord is obliged to request the guest vacate the property within a maximum of 24 hours.

All rooms in the holiday property must be accessible to the guests, whether rented by day or week. It is not permitted to rent out a property that is simultaneously occupied by other tenants.

Mandatory services

• Cleaning before and during the rental period

• Provision and changing of bed linen and towels (standard provision)

• Maintenance and upkeep of the property

• Compliance with further established regulations

Requirements to obtain a Holiday Rental licence

• Fulfilment of all legal requirements (including all necessary documents)

• 1–5 persons: 1 bathroom

• 6–8 persons: 2 bathrooms

• 9–11 persons: 3 bathrooms

• 12 persons: 4 bathrooms

• Location must be in a qualified zone

• No construction sanctions or similar restrictions

• Property must be at least 5 years old (verified by final construction certificate, occupancy certificate, or town hall certificate)

• Valid occupancy certificate (valid for 10 years)

• Valid energy certificate

• Minimum rating F for properties built before 21/12/2007

• Minimum rating D for properties built after 01/01/2008

• Separate meters for electricity, gas, oil, water, etc.

• Liability insurance covering guest damages (for apartments, also covers damages to the community)

• Not located in nature reserves

• Proof that the property was never categorised as subsidised or price-controlled housing

• Fire protection measures if located in a fire risk zone

• New: Your own main residence (house or flat) may be rented for a maximum of 60 days per year (proof of main residence required)

• Apartments: rental only permitted if explicitly approved by the residential community

• Renewal of the licence every five years (with renewed proof)

• Purchase of tourist places (bed allocation must be requested and paid for)

Tourist places and costs

The application must include the following:

• Personal details of the applicant

• Tax number

• Number of beds requested

Once the documents are submitted, the authorities issue a payment request. Upon receipt of payment, the licence is granted.

Costs:

• Detached house: €3,500 per bed (payment in instalments over 5 years: €700/bed/year)

• Apartment: €875 per bed (payment in instalments over 5 years: €175/bed/year)

• Main residence (max. 60 days/year): €291 per bed (payment in instalments over 5 years: €58.33/bed/year)

Example:
A detached house with 8 beds:
€700 x 8 = €5,600 per year
Total: €28,000 over 5 years

An apartment with 4 beds:
€175 x 4 = €700 per year