Holiday Rental In A Nutshell

So far, the tourist rental of detached houses and fincas was allowed, provided you had a license and taxed the rental income. On the other hand, apartments in apartment complexes, as well as apartment buildings, could not be rented.

In the jumble of disputes between the hotel lobby, which was against the private holiday rental and the locals, who complained about the deprivation of housing stood the private landlords, who were hoping for additional income as well as the current left government, which promised in their election program to regulate the holiday letting.

By intervening with the central government, the Balearic Tourism Act has been amended and has come into force since August 2017, but at the same time, there was a moratorium of one year, which should give time to decide whether or not the communities want the lease. In January 2018, the island council issued a long-awaited zoning list that divides Mallorca into tourist-saturated zones, where a maximum of 60 days a year may be rented out. These include, among others, Paguera, the Playa de Palma, Alcudia, etc.

Owners who have already obtained a license before 31.07.2017 enjoy some sort of grandfathering protection, while all others have to wait for the current moratorium to expire until the license can be applied for. The city of Palma is excluded from zoning and decided independently. On the 23rd April, 2018 it was announced by the mayor of Palma, Antoni Noguera (Més) and the building director José Hila (PSOE) that holiday rentals in apartment complexes in Palma are stricly prohibited. Therefore, it is only allowed to rent out to tourists in single-family homes. Besides, new buildings may not be rented for tourist purposes within the first five years after completion. Exceptions, here again, are owners who owned a license before the law or want to rent their property as a long-term or seasonal property.

Since it was officially not allowed to rent out apartments to tourists, nobody can have a license at this time. The fact that many flats were rented was due to the availability that existed on numerous Internet portals, such as Airbnb or TripAdvisor. Just recently TripAdvisor has been affected by a penalty of 300.000EUR. These can go up to 400.000EUR.

When marketing a property, it is therefore mandatory to indicate the registration number. Besides, each rental under one month automatically falls into the holiday rental and is not subject to the Spanish law of long-term leases. Each owner may rent a total of three apartments to tourists, and this requires the agreement of the community majority if the flat is part of an apartment complex.

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