What the new decree actually means for landlords and investors in Mallorca
The new royal decree-law on the moratorium on flats has been in force since February 5, 2026. Published in the BOE (Boletín Oficial del Estado), it extends the suspension of forced conversions for economically vulnerable households until December 31, 2026.
For property owners in Mallorca, this is not a side note, but a relevant factor for calculation, financing and risk management.
The decisive limit: three apartments
The decree makes a clear distinction according to existing size:
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From three apartments in ownership the moratorium on evictions remains applicable, provided the tenant proves his economic hardship.
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Up to two apartments: These small landlords are exempt from the extended suspension. In such cases, the social services must consider alternative accommodation.
This is the government's response to criticism that small private landlords should not be treated in the same way as institutional investors or funds.
What does this mean for landlords in Mallorca?
For owners with multiple units, the risk of prolonged procedures remains.
If an economic need for protection is recognized, a repossession procedure can remain suspended despite the lack of rental income. Owners have ten days to explain their own economic situation or prove their status as a small landlord.
For investors, this once again raises the question of resilient scenarios:How do possible proceedings lasting more than a year affect liquidity planning?
What impact do blocked units have on returns and financing?
How strict should credit and contract reviews be in the future?
In Mallorca in particular, where housing is scarce and rental prices are high, the risk assessment is increasingly shifting from location quality to regulatory stability.
Decisions and judicial reality
The government is providing 300 million euros for guarantees and compensation. However, the existing system remains administratively complex. Owners' associations point to long processing times and unclear payment deadlines.
At the same time, professional associations are warning against further overloading of the courts. Conversion proceedings in Spain already take an average of 15 to 18 months. Reactivating blocked cases could extend this period.Parliamentary uncertainty remains
Although the decree is in force, it still has to be approved by Congress. Several parties have signaled reservations. The long-term stability of the regulation is therefore not yet politically certain.
Classification for the Balearic real estate market
For Mallorca this means:
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Small landlords will formally receive more protection.
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Property owners with several units continue to bear an increased procedural risk.
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Investment decisions must take greater account of regulatory developments.
In the current market environment, it is not only building quality or micro-location that counts, but also the ability to realistically price in legal framework conditions.
The new 2026 moratorium on conversions will not change the market overnight. However, it shifts the parameters according to which rentals and portfolio management are calculated on the Balearic Islands.
