As of today: 650 new licenses for vacation rentals in Mallorca – what you need to know

Launched: New spots for vacation rentals – a small paper, big impact

This morning, around half past seven, as the first buses passed the Plaça de la Porta Pintada, the portal opened: Mallorca is now offering around 650 new licenses for vacation rentals. What sounds like a dry number on paper affects hosts of hotels, apartments and the typical holiday flats in neighborhoods like Portixol or Cala Major.

How the licenses work

One license represents one overnight place – in concrete terms: one bed. If you want to release four beds, you need four licenses. Buyers can be private individuals or companies. The price is around €3,500 per place. Pretty much like the coffee at the café on the Passeig, only much more expensive per place.

Registration is mandatory

Important and somewhat bureaucratic: the purchased places must be registered with the island council (Consell Insular) within a deadline, otherwise the rights lapse. I spoke today with a small operator from Port de Sóller — Marta packed her documents but was visibly nervous: "If you don't register the paperwork in time, the money is gone and the work remains."

What this means for the market

In the short term the supply could create more flexibility: owners who have rarely rented out so far can add capacity. In the long term, however, there is room for speculation: a secondary market for licenses could emerge, especially in popular areas around Palma or Playa de Muro. Local politicians will watch this closely — also because there are already calls to tighten controls on rental and stay conditions.

Practical tips for interested parties

Those who want to bid should note a few points: 1) Check whether the property complies with building and tax regulations; 2) do not postpone registration with the island council; 3) consider whether the investment pays off given seasonal prices. Example: four places at €3,500 each mean an acquisition cost of €14,000 — that only makes sense if occupancy and ancillary costs add up.

What happens next

More quotas will be released in the coming weeks. The authorities have announced that allocations will be carried out in batches. For residents that means: keep an eye out. For hosts that means: better to get informed now than to be surprised later.

And one final tip: if you receive a call from someone trying to sell you a license quickly — take a deep breath and seek advice from the municipality or a legal advisor. On Mallorca many things are discussed at the bar counter, but for licenses it's better to have everything in writing.