Where clients get caught out
Some properties are advertised as rental investments with registrations that belong to another unit, cover fewer places than advertised or were obtained for a use that has since changed. The buyer pays for a value that does not exist.
What we verify about the licence
| Check | What we look for |
|---|---|
| Registration | Number in the official tourism register |
| Property | Same address, cadastral reference and type |
| Places | Number of guests authorised |
| Status | Active, not suspended or under sanction |
| Community | Statutes do not prohibit holiday rentals |
Transferring the licence to you
The registration stays with the property, but the new owner must notify the change of operator. We prepare the notification and make the seller's cooperation a contract obligation. See the guide to the tourist rental licence when buying.
Apartments and Palma
Holiday rentals in apartment buildings are very limited in the islands and not allowed for new registrations in Palma. If you buy an apartment for rental income, we confirm the legal position first. See buying an apartment.
Taxes on holiday rental income
Non-resident owners file quarterly returns on rental income; residents declare it annually. The Balearic tourist tax must be collected from guests. Our tax colleagues at Castell.tax handle both. See tax law.
Example: buying a holiday rental property in Mallorca
Based on situations we commonly see; not a specific client. A Dutch investor was offered a villa near Alcúdia advertised as 'licensed for 10 guests'. The registry showed the licence covered 6 places only. We negotiated a price consistent with the real licence before he signed.
Our collaborators for buying a holiday rental property in Mallorca
For every service we work with trusted collaborators when a matter needs them: notaries, architects and surveyors, tax advisers at Castell.tax, sworn translators, banks and mortgage brokers, property managers and specialist lawyers in other parts of Spain. You keep one lawyer as your single point of contact, and we coordinate everyone else.
Castell.law is the English and German-speaking practice of Castell Abogados, a law firm in Palma de Mallorca. This page is general information, not advice on a specific case: laws and procedures change, so check your situation with us before acting.
Not sure where you stand? Ask before you sign
Tell us about your matter or send us the documents you have. A lawyer will explain the risks, the options and the cost before you commit to anything.
Questions about buying a holiday rental property in Mallorca
Can I get a new holiday rental licence in Mallorca?
Rarely; new licences are very limited by zone and type of property.
Does the licence transfer with the property?
Yes, but the new owner must notify the change of operator.
Can I rent my Palma apartment to tourists?
New holiday rentals in apartment buildings are not allowed in Palma.
What happens if I rent without a licence?
The fines are high, and platforms report rentals to the authorities.