4.2. Renting your property

Buying a second home in Mallorca and then renting it out for a couple of months a year as a holiday home when you aren’t using it is a feasible and economically viable option. This way you get to have that holiday pad in the sun but can get an income from it too.

There has been a lot of talk in the last few years about the new governmental clamp down on rental villas in Mallorca and on the much contested rental licenses, leaving many people confused as to what their rights are and worried about the legality of renting their properties.

Another thing is the Energy Efficiency Certificate. You will need to get this by law if you are planning to rent your property.

Here is a brief summary of the various laws and licenses for renting your property in Mallorca:

TENANCT ACT (Ley de Arrendamientos Urbanos)

This law covers both rentals for permanent housing needs and rentals for other reasons, both types of rentals falling within the same piece of legislation.

Therefore, you are legally entitled to rent out your property for any period of time you want, be it for a night or a year as long as you are NOT renting your property touristically and NOT charging VAT. Your rights as a landlord are protected and your rental is not classed automatically as a tourist rental.

Renting your property non-touristically to tourists requires you make a contract between yourself and your tenants which abides by the terms and conditions of the Tenancy Act and that you do not advertise your property specifically as a tourist rental.

REGIONAL TOURIST RENTAL LAW

This piece of legislation, which is what, has caused all the turmoil and confusion as regards to rental laws, states that you cannot rent a property for touristic purposes unless you have applied and received a rental license. And, only detached and semi detached properties, which provide certain services, will be granted the license, and hence flats and apartments cannot be rented as tourist rentals.

Worth noting from the outset however, is that the law applies only to tourist rentals, and as such, as long as you are careful with your advertising and the wording herein, then you needn't worry.

RENTAL LICENCES

If you own a detached or semi detached property you can either choose to apply for a tourist rental license, provide a certain specified set of services and charge and pay VAT by renting your property as a tourist rental under the Regional Tourist rental Law or, you can do none of the above and rent your property NOT as a tourist rental, for any length of time you wish, and your rental will fall under the Tenancy Act.

 

If you have a flat or apartment on the other hand, then you are obliged to rent your property non-touristically for any period of time under the Tenancy Act. 


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