Let Out Property in Palma

Let out property in Palma — the letting market

Looking to let out property in Palma? Palma on the Mallorca has solid demand for holiday accommodation year round. Letting out property in Palma provides an ongoing return and covers maintenance and property tax during the periods you are not using it yourself.

Since 2018 Palma has banned new short-term rental licences for flats in multi-family buildings — only detached houses can obtain a new licence today. Always check a property's licence status carefully before factoring letting into your investment.

Tourist licence and rules in Palma

To let your property in Palma on a short-term basis (under roughly 2-3 months per tenant) you need a valid tourist licence. In the Balearic Islands this is issued by the the Govern de les Illes Balears, and you must register the property with a specific licence number that must appear in all listings.

The rules are actively enforced, and fines for illegal letting can run into several thousand euros. It is therefore essential to have the licence sorted before you start advertising the property on Airbnb, Booking.com or similar platforms.

Expected rental income in Palma

In high season, a property in Palma can typically be let for 1,500-10,000 EUR or more per week in high season for a villa with a pool. Over a full year, with a realistic occupancy rate of 50-70% in the most popular areas, this can provide a solid ongoing return — particularly if the property is also used privately outside the season.

Remember that rental income must be taxed in Spain (typically 19% for EU citizens on net income) and may also need to be declared in your home country — but double taxation treaties typically prevent you from paying full tax twice on the same income.

How to get started letting in Palma

Start by applying for a tourist licence from the the Govern de les Illes Balears, and make sure the property meets the requirements for safety, fire equipment and signage. Next, you should invest in professional photos — in a market like Palma, where the la seu cathedral and a world-class old town is a big part of the appeal, good photos make a real difference to your booking rate.

Consider whether you want to manage the letting yourself, or use a local property management company that handles key handover, cleaning and guest communication — particularly relevant if you do not live in Spain full time.

Long-term letting as an alternative in Palma

If you prefer a more stable, less administration-heavy solution, long-term letting (over a year) to locals or expats can be a good alternative to seasonal short-term letting. It does not require the same tourist licence, but is instead governed by the general tenancy law (LAU), which gives the tenant stronger rights.

Life and culture in Palma

Palma's old town is built around the enormous Gothic cathedral La Seu, which stands directly facing the harbour — its interior was restored in part by Antoni Gaudí. The city celebrates Sant Sebastià, its patron saint, in January with concerts and street parties across the old town, and the modern art museum Es Baluard is housed in a former fortress wall overlooking the harbour.

Nightlife centres on the Santa Catalina district, where old market halls have been converted into trendy tapas bars and cocktail spots with a young, international crowd. The historic old town (Casco Antiguo) has a quieter, more authentic bar and restaurant scene, while Playa de Palma further east is known for more mass-tourism-oriented nightlife.

Location and infrastructure

Palma Airport (Son Sant Joan) is one of Spain's busiest, with direct flights to almost all of Europe, including Copenhagen. The airport is only 8km from the city centre.

Mallorca has limited rail service — a modern commuter line connects Palma with Inca and other inland towns, while the historic wooden train to Sóller is more a tourist attraction than genuine transport. Within the city there is a well-run bus network and easy access to taxis and Uber/Cabify.

Tourism & leisure

Palma has no long sandy beaches right in the city centre — the nearest proper beaches are Ca'n Pere Antoni close to town and the long stretches at Playa de Palma/S'Arenal to the east. The island's golf courses and scenic bays are only a short drive away.

Santa Catalina and the old town can be noisy in the evenings thanks to the lively restaurant and bar scene, while residential districts like Son Vida and Genova are much quieter. The climate is Mediterranean, with hot, dry summers and milder, wetter winters than the Spanish mainland.

Everyday costs & what to know before you let out in Palma

Eating out in Palma is among the most expensive in Spain, particularly in the old town and Santa Catalina, where a dinner can easily cost 40-70 EUR per person. Rents are correspondingly high compared with mainland coastal towns.

Before you buy: Palma's ban on new short-term rental licences for flats means only properties with an existing, valid licence can be let short-term — always verify this carefully with the seller if letting is part of your plan.