Holiday Rentals in Mallorca

A Profitable Investment in the Sun

Mallorca is not only one of Europe’s most popular holiday destinations but also an attractive location for real estate investments. Holiday rentals (in Spanish: “alquiler vacacional”) offer property owners the opportunity to benefit from the high demand for exclusive accommodations. But what should you consider if you want to use a property in Mallorca for short-term rentals?

The Different Types of Holiday Rental Licenses – ETV, ETVPL, and ETV60

Currently, there are three different types of rental licenses in Mallorca that allow owners to legally rent out their properties to tourists. Each of these licenses has its own requirements and costs, depending on the type of property and the intended rental period.

• ETV License (ETH365_uni): This is the most comprehensive license, allowing year-round tourist rentals without restrictions and does not require renewal. It is available only for detached houses and is the most expensive option. The cost is approximately €3,500 per guest bed, meaning a one-bedroom finca for two guests would cost €7,000, while a six-bedroom villa for 12 guests could cost up to €77,000. Additionally, an owner can hold a maximum of three ETV licenses.
• ETVPL License (ETH365_pluri): Similar to the ETV license, the ETVPL allows year-round rentals, but it must be renewed every five years. Although there has been a moratorium on new licenses, renewals have been allowed again since February 2023. Before the freeze on new licenses, the cost was approximately €875 per guest bed. This license is intended for apartments in multi-unit buildings, meaning detached houses cannot apply for an ETVPL. Additionally, property owners require approval from other residents in the building before renting out their property.
• ETV60-Lizenz: Diese Lizenz erlaubt eine Vermietung von maximal 60 Tagen im Jahr, wobei die Tage auf zwei nicht aufeinanderfolgende Monate verteilt sein müssen (Juli und August sind ausgeschlossen). Diese Lizenz gibt es für freistehende Häuser („ETV60_uni“) sowie für Wohnungen in Mehrfamilienhäusern („ETV60_pluri“). Die Lizenz muss alle fünf Jahre erneuert werden, und Eigentümer benötigen ebenfalls die Zustimmung der Nachbarn.

Legal Requirements and Key Considerations

Anyone considering holiday rentals in Mallorca should thoroughly understand the legal framework. Obtaining a rental license requires documents such as a certificate of occupancy, an energy performance certificate, and proof of property tax and waste disposal fee payments. Additionally, the property must have been used as a residence for at least five years before applying for a license. This means that brand-new buildings may face restrictions when applying for a rental license.

If new rental licenses are issued in the future, it is crucial to be well-prepared. Legislation surrounding short-term rentals in Mallorca is subject to change and is often a topic of political debate. Seeking legal advice from an experienced professional is highly recommended to ensure compliance with the latest regulations.

When purchasing a property with an existing rental license, it is essential to verify all associated documents. Not only does the property need a valid license, but it is also critical to ensure that the license was obtained legally and complies with all current regulations. A lawyer should carefully review the documentation to confirm that the license remains valid and is not at risk of revocation due to regulatory changes.

A Profitable Investment with High Demand

Demand for high-quality holiday rentals in Mallorca continues to grow. Every year, millions of tourists visit the island, preferring luxurious villas, stylish apartments, and charming fincas over hotels. Properties with sea views, prime locations in Palma or Valldemossa, and rural retreats in the Serra de Tramuntana are particularly sought after.

A well-managed holiday rental can generate high returns. Many property owners use professional management agencies to handle marketing, cleaning, and guest services. High-quality photos, elegant furnishings, and professional promotion are essential to stand out from the competition. Owners who opt for professional property management can maximize occupancy rates and secure the best rental prices.

One of the biggest advantages of holiday rentals in Mallorca is the ability to use the property flexibly. Owners can enjoy their vacation home while also renting it out profitably during unused periods. This makes investing in an exclusive property even more worthwhile.

Conclusion

Holiday rentals in Mallorca present an excellent opportunity to generate income with a property. However, investors must be well-informed about the legal requirements and prepare for potential changes in regulations. Anyone considering holiday rentals should seek expert advice to ensure a legal and profitable investment.

At SUNLIFE HOMES MALLORCA, we not only help you find the perfect property but also provide expert guidance on all aspects of holiday rentals. Contact us for personalized advice!