The Spanish authorities are tightening control over the short-term rental market in the popular resorts of Mallorca, Menorca and Ibiza.
The essence of the new rules
The maximum fine for illegal rentals will increase to €500 000, which is 25% more than the previous limit. The fines will be differentiated: minor offences, such as failure to register, can be met with a warning or a €5,000 fine, while systemic offences, including renting in protected areas or repeat offences, will be penalised with sums of up to €50,000-500,000.
In parallel, a freeze on new tourist rental licences is being introduced to stop the uncontrolled growth of supply. The authorities are also offering violators an alternative: if the owner agrees to hand over the flat or house to the public administration for five years for use as social housing, the fine can be reduced by 80 per cent.
Why these measures are necessary
The Balearic Islands have been facing the consequences of mass tourism for several years. Due to illegal renting, house prices have skyrocketed and locals are increasingly unable to rent flats in their own towns. In places such as Palma de Mallorca, Ibiza Town and Ciudadela, residential neighbourhoods are gradually being turned into tourist areas, sparking protests among the population.
In addition, the uncontrolled flow of holidaymakers is putting a strain on transport, utility systems and the environment. In response to these problems, the Balearic government is not only increasing penalties, but also expanding the powers of inspection bodies. Now the control will involve not only municipal services, but also the National Police Guardia Civil.
Consequences for tourists and property owners
For tourists, the new rules could mean fewer rental options, especially on platforms like Airbnb and Booking.com, where unlicensed listings are actively removed. It is now crucial for homeowners to check the legal status of their rentals to avoid huge fines.
Will there be similar measures in other regions
The experience of the Balearic Islands could be an example for other tourist centres in Europe, such as Barcelona, Amsterdam or Venice, where there is also an oversaturation of tourists and a crisis of affordable housing. If strict rent control proves to be effective, other countries and cities may adopt this model of regulation.