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Mallorca warning: No holiday rentals in Spain without permission from the neighbours

The measures aim to curb noise, shortages and fraud

The constant rise in prices, together with a considerable reduction in supply, is making long-term purchase or rental increasingly inaccessible to large sections of the population | Photo: Majorca Daily Bulletin reporter

| Palma | |

Since April 2025, a set of legal reforms has come into force that significantly modify the rental market, especially in the area of tourist flats within residential buildings. Owners can no longer rent out their homes for holiday purposes without the authorisation of the neighbourhood association, a decision that aims to balance the rights of permanent residents and the need to control temporary rentals.

This measure, backed by Organic Law 1/2025, is primarily intended to strengthen the decision-making power of neighbourhood communities in the face of the complex problems caused by short-term rentals: from noise and overcrowding to the loss of homes for regular residents. Spain is not only experiencing growing difficulties in enabling young people to become independent, but is also facing a structural crisis in the housing market. The constant rise in prices, together with a considerable reduction in supply, is making long-term purchase or rental increasingly inaccessible to large sections of the population.

For years, renting in Spain has been affected by factors such as property speculation and the increase in tourism, which have distorted the supply of housing for regular residents. Many young people reach their thirties without being able to leave the family home, not because they do not want to, but because of rising prices and contractual insecurity.

Sharing a flat has become the only viable alternative for many. However, the often precarious conditions and uncertainty about the stability of the rent make it even more difficult to build a stable life. Added to this is the phenomenon of “overtourism”, which has created social tensions in neighbourhoods directly affected by buildings used for short-term accommodation.

The amendment to the Horizontal Property Law has introduced a fundamental requirement: for a property to be used for tourist rental in a residential building, it must have the explicit support of the community of owners. A qualified majority is required for approval, specifically three-fifths of the residents must consent.

This rule seeks to protect the right to peace and quiet and coexistence among residents by preventing holiday rentals from spreading unchecked. In addition, the legislation allows communities to impose additional fees on tourist flats, which can be up to 20% higher to cover the increased wear and tear on common areas.

The measure has been promoted by the Minister of Housing and Urban Agenda, Isabel Rodríguez, in collaboration with regional and local authorities, with the aim of curbing both the saturation of tourist accommodation and the pressure this puts on the residential market. Another important pillar within this package of reforms is the creation of the Single Digital Window for Rentals, a state register that has been operating since 2 January 2025 and will be fully operational in July 2025.

This system centralises and controls all tourist and temporary rentals, which will improve supervision and combat fraud. The intention is to ensure that all rentals comply with the new regulations and to prevent the proliferation of illegal or undeclared rentals. Thanks to this tool, the Administration will be able to act more accurately to punish abuses and ensure that neighbourhood communities have up-to-date information on activity in their buildings.

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