Buying a house with a tourist license in Mallorca can be a great investment opportunity, but it's also one of the real estate transactions with the most legal and tax risks in the Balearic Islands. The phrase "sold with a tourist license" usually increases the price of a property significantly, but it doesn't always mean that the buyer can legally operate the holiday rental after signing the deed.
At Resitax, a boutique firm based in Palma de Mallorca specializing in real estate law, international taxation, and advising foreign buyers, we review these types of transactions before signing any preliminary sales agreements. The key is simple: before negotiating the price, it's essential to know exactly what license exists, what number of tourist accommodations it includes, whether the property complies with urban planning regulations, and whether the permit can continue to be used after the purchase.
In short: the ETV license is not simply a marketing extra. It's a tourist permit tied to a specific property, a particular operating model, a set number of beds, and very restrictive Balearic regulations. In a market with very limited new accommodation options, buying a property with an ETV license can make sense, but only if due diligence confirms that the license is valid, usable, and free of any urban planning, tourism, community, or tax issues.
What is an ETV license in Mallorca?
The ETV, or Tourist Accommodation Permit, is the administrative authorization that allows a residential property to be marketed for tourist stays in the Balearic Islands. In practice, it allows a property to be rented to tourists for short periods through tourist channels, agencies, or digital platforms.
This is not a generic authorization that can be freely transferred from one dwelling to another. The ETV (Temporary Parking Space) is linked to a specific property, a type of dwelling, a suitable area, and a maximum number of spaces, which usually depends on the occupancy certificate or equivalent document.
Why does it affect the price so much?
A property with a Tourist Rental License (ETV) can legally generate holiday rental income, while an equivalent property without a license may be limited to residential or non-tourist seasonal rentals. This difference in how properties operate explains why many properties with tourist licenses in Mallorca are advertised at significantly higher prices than similar properties without such a license.
The problem arises when the buyer pays that extra price without verifying whether the license actually exists, whether it matches the property, whether it can still be operated, whether it has been renewed when required, or whether there are limitations that reduce its real value.
Moratorium and current regulations: why there are almost no new licenses
Since 2022, the Balearic Islands have maintained a framework for containing the tourism supply, severely restricting the acquisition of new tourist accommodation units. Decree-Law 4/2025 maintains this approach and creates temporary pools of units that do not increase the overall tourism capacity: they are drawn from vacancies or existing units returning to the system.
The consequences for the buyer are significant: purchasing a property without a valid vehicle inspection certificate (ETV) thinking that "it can be requested later" is, in most cases, a highly uncertain scenario. Before buying, it's essential to confirm whether the property is in a suitable area, if parking spaces are available, if the type of vehicle inspection is permitted, and if there is actual availability.
Ban on new ETV installations in multi-family dwellings
Since Decree-Law 4/2025 , it is generally not permitted in the Balearic Islands to submit new declarations of responsibility for the commencement of business activity for properties under horizontal property ownership, except for certain types such as terraced or semi-detached houses. The regulation excludes the rental of primary residences from this prohibition, but this type of rental has its own limitations and is not equivalent to a standard investment vehicle registration.
This makes buying flats, apartments, or houses in homeowner associations particularly delicate. Even when a prior license exists, the association's bylaws, recent meeting minutes, the duration of the permit, any extensions, and zoning regulations must be reviewed.
Palma de Mallorca: exercise extreme caution
Palma has the most restrictive regulations on the island regarding tourist rentals. Therefore, in any transaction within the municipality of Palma, it is not enough for the seller to simply state that the property "has a license." It is necessary to verify the current planning regulations, zoning, tourist registration, the homeowners' association, and the administrative status of the authorization.
In practice, a property with a valid license in Palma can have a very high differential value, but it is also where it is most important to review each document before committing a deposit.
Are you thinking of buying a property with a tourist license in Mallorca? Before signing a preliminary agreement, at Resitax we check the ETV (Tourist License), the number of parking spaces, the zoning, the community, and the tax implications so you know exactly what you're buying.
Does the tourist license come with the property?
As a general rule, tourist accommodation authorization is linked to the property and can be maintained even after a change of ownership, provided the requirements that allowed its issuance are met and the change is properly communicated to the relevant tourism authority. However, this general rule should not be confused with an automatic, risk-free transfer.
The operation may be compromised if the license is suspended, if it was granted under a temporary modality, if it belongs to the main residence, if the residence has undergone undeclared works, if there are sanctioning files, if the community of owners has limited tourist use or if the change of ownership is not properly communicated.
License, places and responsible declaration: they are not the same
The term “tourist license” is used in the market, but legally it is important to distinguish several elements:
- The tourist permit or registration that allows the property to be marketed.
- The tourist accommodations associated with that operation.
- The DRIAT, declaration of responsibility for the start of tourist activity.
- The specific type: classic ETV, main residence, horizontal property residence, terraced house, semi-detached house or other admissible type.
- The applicable tourist registration or number, which must be correctly stated in the documentation and advertising required by current regulations.
Proper due diligence is not limited to verifying that a number exists. It must analyze what real rights that number allows and under what conditions they can continue to be used.
The 2026 lottery for places and the temporary pools
In 2026, the Consell de Mallorca (Mallorca Council) launched a temporary pool of tourist accommodation places in private homes. The official announcement offered 1,069 places and clarified that this did not represent an increase in the island's tourist capacity: these places came from cancellations registered in previous calls for applications and during the preceding months.
This data is relevant because it shows that the system has not been generally reopened. Availability remains limited, subject to open calls, requirements, priority, deadlines, and, in certain cases, a public lottery to determine the order in which applications are processed.
Seats acquired on the stock exchange: beware of the transfer
Positions obtained through temporary job pools may be subject to specific restrictions. In the calls for applications regulated after Decree-Law 4/2025, it has been stipulated that positions obtained from this pool cannot be transferred to third parties until five years have passed since their acquisition.
This doesn't mean that all older licenses have this restriction. It means that when a property is advertised with a recent ETV (Electronic Vehicle Registration) or with parking spaces from a temporary pool, you should check the specific resolution, the date the spaces were acquired, and the imposed conditions. Buying without verifying this could lead to paying a premium for a permit that doesn't function like a fully usable, traditional ETV.
The five checks before signing a deposit agreement
Before paying a deposit for a tourist-licensed property in Mallorca, Resitax recommends checking at least these five blocks.
1. Existence and actual status of the ETV
The regional or island tourism registration, file number, registration date, type of license, current owner, and absence of suspension or cancellation must be verified. A purported license number in the real estate listing is insufficient.
2. Match between license and physical reality
The actual property must match the declared information: number of beds, bedrooms, layout, surface area, annexes, swimming pool, extensions, renovations, and habitability status. Unauthorized construction or an unreported extension can seriously affect the tourist operation.
3. Urban compatibility and zoning
The property must be located in a suitable area and comply with applicable municipal planning regulations. It must also have a valid occupancy permit or equivalent title and meet all necessary urban planning requirements.
4. Owners' Association
If the property is in a homeowners' association, the bylaws and recent meeting minutes should be reviewed. The association can limit or restrict tourist activity by a qualified majority of three-fifths of the total number of owners and their corresponding shares, in accordance with the horizontal property regime. This review is essential before buying an apartment or house with shared common areas.
5. Sanctioning or urban discipline files
It must be confirmed that there are no open proceedings that could result in sanctions, suspension, cancellation, or revocation of the license. It is also necessary to verify whether the property has been inactive for extended periods, as tourism regulations allow for reviews of situations involving continuous non-marketing.
How to protect the purchase in the earnest money contract and in the deed
The tourist license must be expressly stated in the earnest money contract as an essential element of the transaction. If the buyer pays a higher price because the property is sold with a tourist license, this circumstance must be recorded in writing.
Essential condition clause
The contract must state that the sale is being signed on the basis that the property has a valid, usable, and transferable tourist license under the agreed conditions. It must also stipulate what happens if due diligence reveals that the license does not exist, does not correspond to the physical reality, cannot be maintained, or is limited.
Seller's obligations
The seller must provide all the necessary tourist, urban planning and community documentation: registration, DRIAT, certificates, occupancy certificate, proof of places, notifications of modification, absence of files and, if applicable, documentation of the community of owners.
Public deed and subsequent communication
The deed of sale should clearly identify the tourist license or permit, the number of beds, and the documentation that proves its status. After signing, the change of ownership or any corresponding modification must be reported to the relevant tourism authority within the deadlines and according to the procedures in place at that time.
It is also important to distinguish between regional or island tourism registration and any state registration requirements for short-term rentals. Royal Decree 1312/2024 created a state Single Registry of Rentals, but its references to the single registration procedure and registration number were annulled by Supreme Court rulings in 2026. Therefore, due diligence should not be based solely on this state registry: Balearic tourism regulations and the specific administrative status of the property must always be reviewed.
Common mistakes when buying a property with a tourist license
Confusing classic ETV and main residence
The primary residence rental option allows you to market your homeowner's main residence for up to 60 days per year, provided the requirements are met and the area is suitable. It is not equivalent to a traditional investment property rental agreement. If the buyer will not be residing in the property as their primary residence, this option may not be suitable for their business plan.
Believing that an old license is always indefinite
Some permits may be valid indefinitely, but others are subject to deadlines, extensions, or periodic requirements, especially in properties under horizontal ownership or specific modalities. It's essential to review the specific modality; don't assume that all ETV permits "do not expire.".
Paying the premium without calculating the real profitability
The value of the rental unit must be justified with a realistic projection of income, occupancy, taxes, management costs, maintenance, community fees, insurance, platforms, cleaning, utilities, and potential periods of non-operation. A license can increase the property's value, but not every premium is justified.
Not checking the tax implications before exploiting
Operating a tourist property can have implications for personal income tax (IRPF), non-resident income tax (IRNR), VAT, transfer tax (ITP), stamp duty (AJD), future capital gains tax, and even the purchase structure, especially for international buyers. Tax implications should be analyzed before purchasing, not after bookings have already begun.
If the seller assures you that "the license is included," don't sign based solely on that statement. At Resitax, we review all tourism, urban planning, community, and tax documentation to avoid surprises after closing.
Taxation of buying and operating a property with a tourist license in Mallorca
The tax aspect is one of the elements that most changes the final profitability of an ETV, especially when the buyer is a non-resident.
ITP, VAT and AJD in the sale
When buying a second-hand property from a private individual, the transaction is usually subject to Property Transfer Tax ( ITP). In the Balearic Islands, the general rate is progressive and can range from 8% to 13% depending on the property's value. For high-value properties, this has a significant impact on the total investment.
If you buy a new home from a developer, the transaction may be subject to VAT, generally at 10%, and Stamp Duty, the general rate of which in the Balearic Islands is 1.5%, without prejudice to reduced rates or benefits applicable in specific cases.
IRNR for non-resident buyers
Non-resident buyers who rent a property in Spain must declare the income obtained in Spanish territory using form 210.For residents of the European Union, Iceland, Norway, and Liechtenstein, the applicable rate is 19%, and certain expenses directly related to the rental can be deducted, provided the requirements are met and they are properly documented.
For non-residents of third countries, the general rate is 24%, and the tax base is generally calculated on gross income, without deduction of expenses. Furthermore, periods when the property is not rented may generate imputed rental income.
VAT on tourist rentals
Holiday rentals can have VAT implications if services typical of the hotel industry are provided, such as regular cleaning during the stay, linen changes, catering, or other similar services. If the transaction is limited to simply making the property available without hotel services, the tax treatment may be different. Therefore, it is essential to review the operating model before listing the property.
Resident buyer: Personal Income Tax and economic activity
For tax residents in Spain, rental income may be taxed as income from real estate capital or as business activity, depending on the actual operating structure and the resources employed. It should not be automatically assumed that all tourist rentals constitute business activity: this will depend on the services provided, the organization, and the applicable tax criteria.
In any case, tourist rentals do not generally benefit from the reduction applicable to the rental of regular housing, because they do not satisfy a permanent housing need of the tenant.
Is it advisable to buy a house with a tourist license in Mallorca?
Yes, it can be advisable, but only if the transaction passes a thorough legal and tax review. A valid ETV (Electronic Housing Unit) can increase the profitability and resale value of the property, especially in a market where new units are very limited. However, that value depends on the license actually being used and not just being a sales pitch.
The right decision isn't "to buy or not to buy with a license." The right decision is to know if that specific license, for that specific property, with that community, in that municipality, and for that specific buyer, allows them to carry out their planned investment.
How we approach it at Resitax
At Resitax, we integrate the ETV verification into a comprehensive real estate and tax due diligence. We review the license, the type of vehicle, the number of spaces, the occupancy certificate, the urban planning status, the homeowners' association, the contracts, the tax implications of the acquisition, and the future tax implications of the operation.
We also assist international buyers in Spanish, English, German, and French, clearly explaining what they are purchasing before committing a deposit. Our goal is to ensure the buyer understands whether the tourist license justifies the price, whether it is transferable, and what obligations they will have after the purchase.
If you're considering a villa, house, or apartment advertised with a tourist license in Mallorca, it's advisable to check the ETV (Tourist License) before the price. In these types of transactions, the risk isn't just in the property itself: it's in what the buyer thinks they'll be able to do with it after signing the purchase agreement.