Buying to Let in the Balearics: Frozen Tourist Licences, €14,000 Fees and the Tax Picture

Buying a property in Mallorca, Ibiza, Menorca or Formentera with the plan of renting it to holidaymakers is one of the most emotionally attractive investments in Europe — and one of the most heavily regulated. The Balearic government has spent the last decade tightening short-term rental rules, and in 2022 it froze the issuing of new tourist rental licences (a moratorium that has been extended and reinforced since). If you buy the wrong flat, or the wrong villa, you may find you legally cannot rent it to a single tourist — no matter what the seller's agent promised you.

This guide walks you through what the Balearics tourist rental licence actually is, what it costs in 2026, how the moratorium works island by island, and what the tax picture looks like for a non-resident buy-to-let owner. Rules and figures change frequently — always confirm the current position with the Consell Insular of the island where the property sits, the Agencia Tributaria (AEAT) for state tax, the ATIB for Balearic regional tax, and an independent Spanish abogado before you sign anything.

What the "tourist licence" actually is

Short-term holiday rentals in the Balearics — anything under 30 days marketed to tourists — are regulated by Law 8/2012 on Tourism of the Balearic Islands and its subsequent reforms (notably Law 6/2017 and Decree-Law 3/2022). The licence, known as an ETV (Estancia Turística de Vivienda), is what allows you to advertise legally on Airbnb, Booking.com, Vrbo and equivalents.

Key points you must internalise:

• The licence attaches to the dwelling, not the owner. When you buy, you inherit whatever status the property has (or does not have).
• Renting without an ETV number displayed in every advert is punishable by fines starting at €40,000 and reaching €400,000 for serious repeat offences.
• Platforms are obliged to remove listings without a valid registration number and share data with the authorities.

The frozen-licence problem

Since February 2022, each Consell Insular has operated a moratorium on new tourist rental licences. In practice this means:

• Mallorca: no new ETV licences for flats in multifamily buildings; extremely limited quota for detached houses, tied to zoning as apto (suitable) in the island's PIAT plan.
• Ibiza: the strictest island — effectively no new licences of any kind for the foreseeable future, and Sant Josep and Sant Antoni have added municipal restrictions on top.
• Menorca: no new licences under the Norma Territorial Cautelar; the island has explicitly prioritised reducing tourist pressure.
• Formentera: closed to new licences and operating a strict cap.

The commercial consequence is that existing licences have become the asset. A three-bedroom apartment in Palma with a live ETV can trade for €80,000–€150,000 more than the identical flat next door without one. On villas the premium is larger still.

What you will actually pay: the €14,000 figure explained

Where do buyers get the "€14,000 in fees" number? It is the rough combined cost, per property, of acquiring or transferring a tourist licence plaza in Mallorca under the current bolsa de plazas system, plus the associated administrative and technical fees. It breaks down approximately as follows — verify each line with the Consell de Mallorca and your abogado:

• Purchase of tourist places from the Consell's exchange bag: charged per plaza (bed), typically several thousand euros for a standard apartment. A four-bed flat can easily reach €8,000–€10,000 on this line alone.
• Technical certificate of habitability and energy performance: €400–€900.
• Responsible declaration and administrative fee to the Consell: a few hundred euros.
• Municipal urban compatibility certificate: variable, often €200–€500.
• Professional fees (gestor, lawyer, tourism consultant): €1,500–€3,000.

Add it up and €12,000–€16,000 is a realistic all-in figure to legally activate a licence on a Mallorca flat — when a licence is even available. In Ibiza, where transfers of existing licences dominate, the price of the licence itself embedded in the sale price is the dominant cost, not the paperwork.

Ibiza's short-term rental rules in one page

Ibiza short-term rental rules are the tightest in Spain:

• Apartments in multifamily buildings are, in almost all municipalities, prohibited from tourist rental.
• Detached and semi-detached houses may hold an ETV only if the property is in a zone declared apta and the community of owners (where applicable) explicitly permits it by a 60% majority under Horizontal Property Law reforms.
• Minimum quality standards apply: air conditioning, hot water certificates, civil liability insurance, and 24-hour contact number.
• The Consell d'Eivissa publishes an updated inspection plan every year — enforcement in 2026 is aggressive, with drone monitoring of unlicensed pool rentals.

If someone offers you an Ibiza flat "perfect for Airbnb," treat it as a red flag until your lawyer has seen the ETV certificate and cross-checked the number on the Consell's public register.

The tax picture for a non-resident landlord

Assume you are a US, Canadian, UK, French or German buyer holding the property personally (not through a company). The main Balearic Islands buy to let tax exposures are:

On acquisition

• ITP (transfer tax) on resale property: a progressive scale in the Balearics running from 8% up to 13% on the top slice for properties above roughly €2 million. Confirm current brackets with ATIB.
• IVA (VAT) + AJD on new-build: 10% IVA plus 1.2% stamp duty in the Balearics.
• Notary, registry and legal fees: budget 1.5%–2.5% of price combined.

While you own and rent

• Non-Resident Income Tax (IRNR) on rental income: 19% for EU/EEA residents, 24% for non-EU residents (including US, UK and Canadian residents post-Brexit). EU/EEA residents can deduct expenses; non-EU residents historically could not, though recent case law and reforms are shifting this — ask your asesor fiscal.
• IBI (municipal property tax): typically 0.4%–1.1% of valor catastral annually.
• Basura, vado, community fees and the Balearic tourist eco-tax (charged per guest per night, which you collect and remit) all apply.
• Wealth tax (Impuesto sobre el Patrimonio): the Balearics apply it with an individual allowance around €700,000 (state minimum) plus a possible primary-residence allowance that does not help non-residents. Rates run roughly 0.28%–3.45%.

On exit

• Capital gains for non-residents: 19% flat on the gain, with a 3% retention withheld by the buyer at completion and paid on account to the AEAT.
• Plusvalía municipal: the town-hall tax on the increase in land value, reformed in 2021 to allow calculation on real gain.

Common pitfalls

• Buying "on the promise" of a licence. Verbal assurances from selling agents are worthless. Only a cédula ETV with a registration number issued by the Consell is proof.
• Community bylaws that ban tourist rental. Even a licensed flat can be blocked if the comunidad de propietarios has voted (by 60%) to prohibit tourist activity. Get the minutes of the last three years.
• Assuming a rural villa can rent to tourists. Agricultural land (suelo rústico) properties need a separate track and often cannot obtain ETVs at all.
• Under-declaring rental income. AEAT receives data directly from Airbnb and Booking. Reconciliation letters are routine in 2026.

Short FAQ

Can I still buy a rental property in the Balearics in 2026? Yes, but effectively only by buying one that already carries a valid, transferable ETV — or by accepting that you will rent long-term (over 30 days), which is unregulated by tourism law but has its own housing-law constraints.

Does the licence transfer automatically when I buy? In most cases yes, provided the change of ownership is notified to the Consell within the required window and the property continues to meet the technical requirements. Do not assume — put a condition precedent in the contrato de arras.

Is it worth setting up a Spanish SL to hold the property? For a single rental, usually no — corporate tax plus dividend tax typically exceeds IRNR. For portfolios of three or more, run the numbers with an asesor fiscal.

Final reminder: tourism and tax law in the Balearics is one of the most fast-moving areas of Spanish real estate. Every figure and rule above should be re-confirmed with the relevant Consell Insular, ATIB, AEAT and an independent Spanish lawyer before you commit capital.