The increase in travelers to Mallorca has led the Balearic Government to approve a moratorium on tourist licenses until at least 2026. Within this framework, the issuance of new tourist licenses has been frozen. Therefore, the best way to enter the tourist rental business in Mallorca is to purchase a property that already has a license.
What exactly is behind the ETV license in Mallorca?
An ETV license is a permit that allows tourist rentals throughout the year in Mallorca, without the need for regular renewal, as it is permanently valid. Without an ETV license, which specifies the number of places allocated by the Mallorcan authorities, it is not possible to rent a property for periods of less than one month.
What differences are there between ETV licenses in Mallorca?
In Mallorca, there are three main types of licenses to generate tourist income from residential properties (ETV, ETVPL and ETV60).
The ETV license applies exclusively to detached single-family homes (chalets, villas or finca properties) and is unlimited in duration, meaning that no renewal of the license is required. This license allows tourist rentals throughout the entire year.
For apartments or terraced houses, the ETVPL licenseapplies. Even if a property listing simply states “ETV license,” it always refers to the ETVPL variant. This license is valid for 5 years and can be renewed provided that the application is submitted on time. It also allows tourist rentals without seasonal restrictions. This license requires the approval of the homeowners’ association for tourist rental activity.
Finally, there is the ETV60 license.This license can apply to single-family homes, terraced houses, or apartments in multi-family buildings, provided that the property is the owner’s primary residence. It allows tourist rentals for a maximum of 60 days per year. In the case of homeowners’ associations, the approval of the community is also required. This license is also valid for 5 years and can be renewed accordingly.
Legality of the property
Many potential buyers believe that the granting of an ETV license automatically confirms the legal status of the property. However, this is only correct if no illegal extensions or alterations have been carried out after the license was granted. If this is not the case, a renewed inspection (for example, during a transfer of ownership or license renewal) may result in licenses being “frozen,” meaning that future rental activity may no longer be guaranteed.
CONCLUSION
ETV licenses are essential for operating legally in the tourist rental sector in Mallorca. The current restrictions make properties that already hold these licenses highly valuable assets. Therefore, it is crucial to be familiar with and understand the local regulations before investing in a property intended for tourist rental on the island.
