Legal Situation latter category, properties can be let to holidaymakers throughout the year. Renting property in Mallorca has become a complicated issue. The new regulations in the tourism framework law For example; people liable for tax in an EU-country, are designed to restrict holiday rentals and they adopt a which is not Spain, must also pay tax in Spain on rental very rigid approach to awarding new rental licenses for income earned there. However, Spanish rental income is holiday lets.Once someone has not exempt from taxation abroad. managed to obtain a registration The Spanish regulation of holiday number for the property, they must rentals, also includes certain paya separate charge for each The new legislation tax rules.Despite this, investors visitorbed that it accommodates. promises better are still attracted by the “magic regulation of holidaytriangle” of security, liquidity and The Mallorca Island Council rentals androvp ides rate of return in Mallorca. initially plans to authorise greater legal certainty. 20,000 visitor beds for holiday Many purchasers looking for a letting, with the number rising to buy-to-let property in Mallorca 30,000 by 2020. The distribution seek advice from Engel & Völkers of beds will be governed by the PIAT (The Tourism in order to be more certain about the investment deci- Intervention Plan) zoning plan, which distinguishes sions they are taking. Engel & Völkers also recommends between tourism areas that are “saturated” and those that a tax advisor, who is licensed in Mallorca, should where there is still available capacity. In areas in the be consulted for information on tax issues. Average Price Ranges for Long-Term Rentals by Region 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Palma de Palma Mallorca Mallorca Mallorca Mallorca Mallorca Mallorca Surroundings Southwest Central South West North & Son Vida Villas Apartments Figure 18: Rentals – Engel & Völkers Mallorca, Internal Company Data RUE