Marketing your own living space needs to be carefully considered, but currently offers some new options and more protection against „Okupas“.
Renting out property in Mallorca remains a challenge for owners, but there are new developments that bring both opportunities and risks. New laws and programs have potentially improved the situation somewhat in 2024/25.
Traditionally, the country does not have a particularly strong rental culture, as is the case in Germany or Switzerland, for example. It is common for Spaniards to own their own home as soon as it is economically feasible. Even at a young age, small apartments are often purchased for young people with the help of their parents' generation. Over time, they may then expand into a spacious property.
The situation on the housing market has worsened in recent years. Despite the housing shortage, the vacancy rate in Mallorca is still estimated at up to 20 percent. To tackle this problem, the Balearic government introduced the „Lloguer Segur“/“Alquiler Seguro“ (Secure Rent) program at the end of 2024. It offers landlords new security and is intended to ease the housing market. The stated aim is to activate 2,000 new rental apartments within a year.
„Express-Räumung"One significant change concerns the problem of illegal squatting by so-called „okupas“. Since April 2025, Spain has had an accelerated procedure for the eviction of such cases („Express Eviction“/„Desahucio Express“). The new legislation makes it possible to have illegal squatters evicted from a property within a maximum of 15 days, whereby a judge can decide in summary proceedings. However, the previous protection for tenants with older contracts remains in place, even if they should suddenly stop making their payments.
The conservative Balearic government had introduced a special regional deduction of 30 percent up to an upper limit of 3,600 euros for long-term rentals in the 2024 budget law. This is currently still being discussed with the central government - possibly all the way to the Constitutional Court. However, there are also incentives for renting regardless of this, as 50 percent of the income can be deducted from income tax (IRPF) throughout Spain.
The program „Secure Rent“ („Lloguer Segur“) offers landlords various guarantees: the government assumes the role of guarantor and guarantees that the rent will be paid on time. Any damage to the property is also covered. Landlords and estate agents can register for the program via the cafbal.com platform. The program is implemented in cooperation with the industry associations API and Cafbal. 30 percent of the rent goes to the residents as a subsidy, while the Balearic government guarantees the landlord 70 percent as fail-safe income.
The catch, however, is that the maximum rent may not exceed 1050 euros, whereas on the open market, similar properties can fetch 1200 euros or more. In addition, providers must commit themselves for seven years.
Strict rules continue to apply to holiday rentals to tourists. It is only permitted with the appropriate license, the number of which must be stated with all offers. The portals are obliged to disclose their bookings to the Spanish tax authorities. What is relatively new is that owners of vacation apartments must explicitly obtain the consent of their community. In addition, stricter sanctions against illegal vacation rentals have come into force.There are various options for landlords today: The classic long-term rental (5-year contract with a three-year extension), possibly with the new securities of the „Lloguer Segur“-program or seasonal rental contracts with a term of up to one year. However, the latter must still be justified with special circumstances such as a seasonal job, another main residence or education. Otherwise, as a landlord, you quickly end up in an unwanted permanent tenancy.
The solvency of potential tenants is still of great importance, which can be secured, for example, through advance payments of 6 or 12 months - sometimes not impossible in Mallorca. There are also default policies from private insurance companies.
Real estate agents play an important role, can help with the administration or with the exchange or purchase of (costly) holiday rental licenses, which has been permitted again since April 2025, and can take over the professional management of rentals under certain circumstances.
Overall, the situation for landlords has improved somewhat thanks to the new legal regulations and programs. In principle, this could help to activate more living space and ease the tense situation on the housing market at least a little. It might also be possible to preserve value through professional letting. After all, vacancies are not good for the building fabric.
Michael U. Maier
