Why buyers get caught out
The price of a villa with a licence often includes the expected rental income. If the licence does not exist, belongs to a different property, covers fewer places than advertised or cannot be transferred, the buyer has paid for income they will not legally earn.
Checking a licence before you buy
| Check | Why it matters |
|---|---|
| Registration in the tourism register | Confirms the licence exists and its number |
| Type of accommodation | Single-family home, apartment or other: different rules |
| Number of places | Determines how many guests you can legally host |
| Planning and habitability | The licence depends on the building being legal |
| Zoning and island rules | Some areas no longer allow holiday rentals |
| Inspections and proceedings | Open files or sanctions affecting the licence |
| Transfer conditions | How and when the licence passes to the buyer |
We put the results into the contract: the licence as an essential condition of the purchase, the seller's warranties and the obligation to complete the transfer. See buying a property with a tourist rental licence in Mallorca.
Island differences
Mallorca applies island-wide zoning, and Palma has its own, stricter rules: apartments in multi-family buildings cannot obtain new licences in the city. Ibiza has some of the strictest rules and active enforcement against illegal rentals; see tourist rental licences in Ibiza. Menorca has its own plan and limits; see tourist rental licences in Menorca. Formentera controls tourist accommodation very tightly.
Transfers, changes and compliance
When you buy a property with a licence, we prepare the communication of the change of holder and check that the property still meets the requirements. If you plan works or want to change the capacity, we review whether that affects the licence. We also advise on the obligations of a licence holder: registration of guests, tourist tax, insurance and advertising the licence number.
Inspections and fines
If you receive an inspection, a request for information or a sanction proceeding, the first deadlines are short. We review the file, prepare the response and, where possible, reduce or annul the sanction. Owners renting without a licence should get advice before any inspection, as fines in the Balearics can be very high.
Long-term letting as an alternative
Where a holiday licence is not possible, long-term or seasonal letting may be a legal alternative, with its own rules on contracts, deposits and tenant protection. See long-term rental in the Balearics.
This service is provided by the property team of Castell.law in Palma. See also our investment and rental service.
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 tourist rental licences
Can I get a new holiday rental licence in Mallorca?
In many areas, and for apartments in Palma, no. Elsewhere it depends on the type of property, the zoning and the availability of places. It must be checked case by case.
Does the licence pass to me when I buy the property?
It can, if it is valid and the change of holder is communicated correctly. The contract should make the licence a condition of the purchase.
What happens if I rent without a licence?
You risk significant fines and the removal of your adverts from the platforms, and the property may face restrictions on future licences.
Can you check a licence before I make an offer?
Yes. We can check the register and the property's basic legal position before you sign anything.