Update Mallorca holiday rental regulations 2018

Since end of July 2018 and after a one-year moratorium, it is again possible to apply for new holiday rental licenses from the Ministry of Tourism. In a first step a quota of 20,000 guest beds will come to the market. Existing “old” licenses will enjoy grandfathering in the future.

The receipt of a new license depends on whether the property is located in an area where holiday renting is possible according to the “zoning plan” and whether the general conditions for holiday rental activities are met. The first step is to obtain the appropriate zoning confirmation from the responsible municipality for a small fee. This certificate indicates whether and to which extent holiday rental activities of the property in question may take place. It is amongst other papers (e.g. energy certificate) part of the supporting documentation of the holiday rental application.

The next step is to buy the necessary beds through the so-called “stock exchange for beds”, whereby the one-time fee for all year renting of a finca per guest bed is for instance 3,500 euros. The fee for a bed in an all year offered apartment is 875 euros and the fee per bed in the restricted 60-days rental zones (explained in more detail below) is 291.67 euros. Settlement in instalments is possible within 5 years. Special attention will be given in the future to the certificate of habitability (Cédula de habitabilidad), because the number of beds one can apply for is restricted by the official number of places according to the Cédula.

Important for new buildings: a new property can not get a holiday rental license in the first 5 years after completion– regardless where it is located.

Rental zones

The zone plan (PIAT) http://mas.mallorcazeitung.es/spezial/zonenkarte-ferienvermietung-mallorca.pdf is the key point of the tourism law: It distinguishes between regions that are classified as saturated and regions that are still being considered receptive, where properties can be rented all year. There are some areas where holiday rentals are completely prohibited, for example at the Playa de Palma or more precisely from Es Carnatge (Can Pastilla) to the local border to Llucmajor in Arenal. The same applies to protected landscape areas and industrial and economic areas. There are still several places that are considered “sensitive”: These include around 31 areas, for example, certain sections of Deià, Pollença, Sóller, Ses Salines, also on a generally rural basis, where also may be rented only to a limited extent. In sensitive as well as in “saturated” places, renting can be restricted to the 60-day rule, which means that these objects may only be rented for a maximum of two months a year. Moreover, renting in these areas is restricted to one peak season month, this means July or August.

Saturated coastlines such as southwest Palmanova, Magaluf, Santa Ponça and Peguera or southeast Arenal, Cala Blava or Son Verí Nou are also considered saturated. The city of Palma is excluded from the zone plan, the city council has submitted its own rules.

Type of Accommodation

It is basically possible to rent single-family houses, but also apartments in multi-family houses, provided the other owners agree and the objects are located in one of the approved zones.

Certificate of habitat (“cédula de habitabilidad”) and proof of energy efficiency (“certificado energético”) must be provided. Another requirement is the availability of at least one bathroom for four guest beds. A holiday apartment in a multi-family house has to be equipped with own electricity and water meter. In those areas where holiday rentals are restricted to 60 days per year, the property must be the main residence of the owner. However, these regulations only apply to properties that have not yet had any official license to lease, so a new license must be purchased.

Different license terms

Old holiday rental licenses that have been applied for and granted before the new directives come into force usually have no expiration date and will enjoy grandfathering in the future. The validity of new licenses varies: New licenses for holiday homes are granted for an unlimited time. On the other hand, holiday apartments that have been granted a permit for the first time are limited to five years. Since the Balearic Government intends to reduce the total number of touristic beds in the medium term, the number of licenses that will be returned, respectively which will fall back to the bed exchange, should not be reassigned. Currently, the law provides for a limit of 430,000 beds in Mallorca, of which 115,000 are for holiday rentals and the remainder (315,000) for hotels.



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