A holiday rental licence in Mallorca is, for many buyers, a decisive part of a villa’s value. Letting a property to tourists for short stays requires prior registration with the island tourism authorities, and the availability of new registrations has been severely restricted in recent years. Raso Investments verifies the tourist rental position of a property before purchase, so that buyers know whether the rental income they are counting on is legally achievable and secure.
Tourist letting in the Balearic Islands is governed by the regional tourism legislation and by the planning rules adopted for each island and municipality. On Mallorca, registration is handled by the Consell de Mallorca, and the registration number commonly begins with the letters ETV, which refer to tourist stays in dwellings (estancias turísticas en viviendas).
How the holiday rental licence in Mallorca works
In general terms, a property can be marketed for short tourist stays only if it has been registered, meets the technical and safety requirements, and holds the number of tourist places assigned to it. Advertisements must display the registration number, and a national registration number is now also required for advertising on online platforms.
The rules depend heavily on the type of property and its location. New registrations in apartment buildings are now heavily restricted across the Balearic Islands, and the City of Palma applies its own restrictions. For detached and semi-detached houses, the position depends on the island’s zoning, the municipality and the availability of tourist places. The criteria have changed several times and may change again, so each property must be checked against the rules in force at the time of purchase.
What we review before you buy
- Existence of the registration. We confirm that the registration exists in the official register and that it corresponds to the specific property being sold, including its address and cadastral reference.
- Number of tourist places. The registration authorises a maximum number of guests. We check whether those places were acquired and whether they match the property’s bedrooms.
- Conditions and limitations. Some registrations are subject to specific conditions on duration, type of property or periods of the year.
- Compliance of the property. The registration presupposes that the building is lawful and holds the relevant certificates. A property with unauthorised works may compromise the registration. See our page on luxury villa due diligence in Mallorca.
- Pending proceedings. We ask whether there are inspections, complaints or sanctioning proceedings relating to the property.
- Change of ownership. We establish what formalities are required to communicate the change of owner after completion, and we include them in the contract.
How we work
We request the registration documents from the seller, check them against the official register and the property’s planning status, and summarise the result in writing. If the registration is a key element of the price, we propose contractual protections: a condition that the registration exists and is transferable, seller warranties about its validity and the absence of sanctions, and, if appropriate, a retention from the price. After completion we handle the notification of the change of ownership and update the registration details. This review is part of our wider work on buying property in Mallorca.
Common risks and mistakes
- Relying on rental history or online listings as proof that the property is licensed.
- Buying an apartment expecting to obtain a new tourist registration, without checking the current restrictions.
- Assuming that the number of bedrooms equals the number of authorised places.
- Not communicating the change of ownership, which can create problems with the registration.
- Letting without registration. Fines for unlicensed tourist letting in the Balearic Islands can be very significant, and platforms are required to remove unregistered listings.
Tax aspects
Income from holiday rentals is taxable in Spain. Residents declare it in their personal income tax return; non-residents must file non-resident income tax returns, explained on our page on Modelo 210. The Balearic tourist tax applies to stays in registered accommodation, and the owner or manager must collect and pay it. Depending on the services provided, VAT may also be relevant. The tax treatment depends on the case and on the regulations in force; every case is reviewed individually. For investors comparing returns, our page on property investment in Mallorca places rental income within the wider legal and tax framework.
Owners who use a management company should also review the management agreement. It should state who is responsible for registering guests, collecting the tourist tax, complying with safety requirements and responding to inspections, and how the income and expenses are reported to the owner for tax purposes. A clear allocation of these obligations reduces the risk that the owner is held responsible for breaches committed by the manager and makes the annual tax returns easier to prepare. Where the property is owned through a company, the tax analysis changes and should be considered before the purchase.
Frequently asked questions
Does the holiday rental licence stay with the property when I buy it?
As a general rule the registration is linked to the dwelling, but the new owner must complete the required formalities. Conditions attached to the registration must also be respected.
Can I obtain a new licence after buying?
It depends on the property type, location and the availability of tourist places. In many cases it is no longer possible, which is why the check must be done before buying.
Can I let the property for longer periods without a licence?
Lettings that are not tourist stays, such as seasonal or residential tenancies, are governed by different rules. The distinction depends on the purpose and characteristics of the letting.
What happens if the seller’s registration turns out to be invalid?
The consequences depend on the contract. Appropriate warranties and conditions allow the buyer to withdraw or claim compensation.
Next steps
To check the holiday rental licence of a property in Mallorca, write to info@raso.law. Describe the transaction and the property, including its location, type, registration number if known, and how you intend to use it. We will review your case individually and reply in writing.