Letting Property in Mallorca: Let Your Property
also see Long-term Rental in Mallorca: Long Lets in Majorca

Renting out your holiday home in Mallorca

With buy-to-lets being all the rage back in the UK, many people come to Mallorca and think how wonderful it would be to buy a holiday home that they could use for a number of weeks during the year, and then rent the property out during the rest of the year and use the income to pay off the mortgage or other associated costs.  Sounds great – until that is, the local government decided to close a loop-hole for potentially undeclared taxable income, and declared that only properties with the appropriate license could be rented out to holiday makers.

If caught renting out a property without a license, a fine of up to €30,000 can be applied.

Spanish law distinguishes between ‘holiday homes’ (viviendas vacacionales), defined as private residencies rented out by owners to holiday makers on a part time basis, and 'tourist apartments' (apartamentos turisticos). Tourist apartments are typically built as a complex with facilities and services especially geared towards tourists, and are managed by a management company. These apartments have use restrictions and some buyers may be unaware that if regulations concerning the services and facilities are not adhered to, fines may be issued.

The laws apply to 'holiday homes' apply to both apartments in a complex and individual villas alike.

In the Balearic Islands, influential hotel groups have pressed for the introduction of laws that make it extremely difficult for owners to rent legally to tourists. They say that this will safe-guard more tourist bednights in establishments which sustain the employment of large numbers of the local inhabitants and contribute to the local economy. Only the official ‘tourist apartments’, as opposed to private residential apartments, can be lawfully rented to holiday makers. Detached villas are a separate case, and can be rented if you obtain a license. However, licenses to rent your detached villa have become almost impossible to obtain from the local government in Mallorca.

Of course, many visitors use the internet to search for a holiday property, and the use of websites that put you directly in touch with the property owner is one of the easiest ways to secure your holiday rental at a good price. These same websites are now being used by the authorities to clamp down on those who are disregarding the law.

This is our current understanding of the law:

• Renting your property to family and friends is allowed as long as you declare the income to your tax authority
• If you are renting to holiday makers through an agent or the internet, you need to have a license
• If you can show that you are not renting your property on a commercial basis (no agent, no ‘extras’ such as towels, food etc provided in the apartment), you do not need a license
• Longer term rentals are not covered by this license requirement

Of course, if you are thinking of renting out your Mallorcan home in the future, the best thing is to speak to a local lawyer who will be able to give you the latest position on the legal requirements in your area.

ETL Mallorca, PalmaInternational law firm for Spanish and foreign nationals and companies

ETL Mallorca was established in 2000 and has been proving its credentials as a respected international law firm ever since. The aim of ETL Mallorca is to provide prompt, no-nonsense legal and tax advice to foreign and Spanish nationals and companies. ETL Mallorca offers a wealth of experience in the main areas of Spanish law. ...more

map | enquire |