Is the income plan legal for this property?
| Strategy | Key legal question |
|---|---|
| Holiday rental | Is there a valid tourist licence, with places and registration, and does it transfer? |
| Long-term rental | Tenancy law, minimum terms and rent updates |
| Hotel or agroturismo | Category, tourist places, rustic land and legality of every building |
| Commercial premises | Permitted use, activity licence, lease terms and VAT |
| Renovate and resell | What the licence will allow and how long it takes |
Tourist rental licences
A valid licence can be the most valuable part of a holiday home, and the most misunderstood. Palma bans holiday letting in apartments, Ibiza town does the same, and Decree-law 4/2025 prohibited new tourist places in apartment buildings on all islands. Houses depend on zoning and available places. We verify the licence, its capacity and its transfer before you commit. See our guides for Mallorca, Ibiza and Menorca.
Structures and tax
Buying personally is simplest for a home you will use; a Spanish company can suit a rental portfolio or a development; foreign entities may face a special annual tax and complex reporting. We model acquisition, holding and exit taxes before you choose, together with your home advisers.
New builds and development
For off-plan purchases, every advance payment must be guaranteed and paid into a special account. For development, we confirm the plot's buildability and the licence route before you buy. See new-build property in Mallorca.
Golden visa and residence
Since 3 April 2025, buying property no longer leads to a Spanish investor residence permit. Non-EU investors who want to live in the islands need a separate visa, such as the non-lucrative visa or the digital nomad visa.
Exit planning
Who can buy from you, what licence and legality you can prove, and what tax you will pay all decide your exit. We prepare the asset from day one so it can be sold cleanly. We are part of the Castell group in Palma; for investment and other legal matters in English, see Castell.law.
Before you pay a deposit, ask a lawyer
Send us the listing or the document you have been asked to sign. An English-speaking property lawyer will tell you what needs checking and what it could cost you not to.
Questions about property investment
Can I still get a tourist licence for an apartment in the Balearics?
New tourist places in apartment buildings are prohibited on all islands. Existing licences must be checked carefully before buying.
Is it better to invest through a company?
It depends on the strategy, your residence and the exit. Companies suit some rental and development projects, not usually a holiday home for your own use.
Does buying property give me Spanish residence?
No. The investor residence route for real estate ended on 3 April 2025.
Do you advise on hotels and agroturismos?
Yes: licences, tourist places, rustic land, employees and the structure of the acquisition.