Buying Property in Mallorca and Ibiza as a Foreigner (2026): The Balearic Islands, the Rental-Licence Squeeze and the Foreign-Buyer Debate

Published on: July 11, 2026

Last verified: 11 July 2026. Balearic tourist-licence rules, transfer-tax scales and national housing measures change frequently. Verify before acting.

The Balearic Islands lead Spain in property sales to foreigners, international buyers account for roughly a third of all transactions here, more than any other Spanish region. That intensity of demand has produced two of 2026's biggest questions for anyone eyeing a home in Mallorca, Ibiza, Menorca or Formentera: can foreigners still buy at all after a high-profile ban proposal, and can you actually rent the place out given one of Europe's toughest holiday-let regimes? This guide answers both accurately, and walks through what it really costs to buy on the islands.

Can foreigners still buy? Yes, the ban was rejected

In late 2025 a proposal from the Mallorcan nationalist party Més per Mallorca made international headlines: it would have barred non-residents from buying homes in the Balearics unless they had lived on the islands for several years, alongside curbs on corporate and second-home purchases. British and other foreign buyers were understandably alarmed.

The accurate outcome: the Balearic Parliament debated and rejected the proposal on 24 February 2026. The governing Partido Popular and Vox voted it down, with the regional government calling it "headline-grabbing" and legally unworkable under EU free-movement-of-capital rules. Industry bodies pointed out the obvious, restricting buyers "does not create a single additional home." This was not the first such attempt to fail; a similar Balearic-and-Canary initiative was voted down at national level in May 2025.

The bottom line for 2026: there is no ban. EU and non-EU nationals can buy villas, apartments or land in Mallorca, Ibiza and Menorca with the same ownership rights as Spanish citizens, through the same notarial process. The political debate signals that scrutiny of foreign ownership will keep resurfacing (regional elections in 2027 could revive it), but as things stand the market is fully open.

One related measure worth knowing: a separate "Strategic Residential Projects" decree requires that 50% of homes in certain new developments be reserved for residents. It is under constitutional-court challenge, but it is a live example of how the islands are trying to steer supply toward locals.

The real constraint: the ETV rental-licence moratorium

The far more consequential rule for buyers isn't about who can buy, it's about who can rent. Since February 2022, the Balearic government has imposed a moratorium on new tourist-rental (ETV) licences across all four islands, and it remains in force in 2026 with no general reopening.

An ETV (Estancia Turística en Vivienda) is the legal permit required to let a home to tourists for stays under 30 days. Without one, advertising on Airbnb or Booking.com is illegal and carries serious fines. Because no new general licences are being issued, the only reliable way into the holiday-let market is to buy a property that already holds a valid ETV licence, and the licence transfers with the property only if the deed of sale expressly transfers it and the island council (Consell) approves the transfer. As a result, licensed properties trade at a meaningful premium (commonly 15 to 25%) over otherwise identical homes.

The three licence types matter:

• ETV: for standalone villas and detached houses. Indefinite, no renewal required, no community approval needed. This is the licence investors most want.
• ETVPL: for apartments in multi-unit buildings. Valid five years, must be renewed, and requires community-of-owners approval. A national rule now also requires 60% of neighbours to consent to tourist activity, making these harder to maintain.
• ETV60: for owners using the home as their primary residence, letting a maximum of 60 days a year.

Enforcement varies sharply by location. Palma has banned new apartment holiday-lets outright and caps registered properties. Ibiza is the strictest of all, apartment lets are prohibited in Ibiza Town and Sant Antoni. Mallorca's rural and mountain areas (the Tramuntana, and towns like Pollença and Sóller) retain more flexibility for licensed villas, subject to strict zoning.

There have been small, one-off releases of licence "places", for example a limited pool opened by public draw in spring 2026, but these are heavily oversubscribed and are not a general reopening. The governing PP has expressed an intention to liberalise, but no formal decree lifting the freeze has been enacted. Assume the freeze is in place, and buy an already-licensed property if rental income is your goal.

What a foreigner pays to buy in the Balearics

Balearic property is among the most expensive in Spain (Palma sits above €5,000/m², and exclusive municipalities such as Andratx and Calvià well above €7,000/m²). On top of the price, budget for:

• Resale property (from a private seller): the Balearic ITP transfer tax, charged on a progressive scale that rises with value, roughly 8% on the first band, climbing to 11 to 13% on the highest-value slices typical of luxury island homes.
• New build (from a developer): VAT (IVA) at 10%, plus stamp duty (AJD).
• Notary, land registry and legal fees: typically 2 to 3% combined.

All in, plan for roughly 10 to 14% above the price on a resale purchase, higher than mainland coasts because the Balearic ITP scale is steeper at the top. You'll need an NIE (foreigner's tax number) and a Spanish bank account, and an independent lawyer is essential to verify title, licence status and community rules.

Ongoing costs include IBI (municipal property tax), community fees, and non-resident income tax (Modelo 210) at 24% for non-EU owners and 19% for EU owners.

A note on the Golden Visa

If you were counting on residency through the purchase: Spain abolished the Golden Visa on 3 April 2025. Buying property in Mallorca or Ibiza no longer grants any residence permit. Existing holders keep their status; new applicants must use other routes, such as the Non-Lucrative Visa or Digital Nomad Visa. Ownership itself remains unaffected, you just don't get residency from it.

Frequently asked questions

Can foreigners buy property in Mallorca and Ibiza in 2026?
Yes. The proposed ban on non-resident buyers was rejected by the Balearic Parliament in February 2026. EU and non-EU nationals can buy freely with the same rights as Spanish citizens.

Can I rent my Balearic property to tourists?
Only if it holds a valid ETV tourist-rental licence. New licences have been frozen since February 2022, so in practice you must buy a property that already has one, and ensure the licence is transferred to you in the deed. Renting without a licence carries steep fines.

Why do licensed properties cost more?
Because the licence moratorium makes them scarce. A home with a transferable ETV typically trades at a 15 to 25% premium over an identical unlicensed property, since it can legally generate rental income from day one.

Does buying in the Balearics give me Spanish residency?
No. Spain ended the property-linked Golden Visa on 3 April 2025. Residency now requires a separate visa such as the Non-Lucrative or Digital Nomad Visa.

What are the total buying costs in the Balearics?
Roughly 10 to 14% on a resale purchase. The Balearic transfer tax (ITP) uses a progressive scale that reaches into double digits on high-value homes, plus notary, registry and legal fees.

Can I let an apartment in Palma or Ibiza Town on Airbnb?
Generally no. Palma has banned new apartment holiday-lets, and Ibiza Town and Sant Antoni prohibit apartment tourist lets entirely. Licensed detached villas in permitted zones are the main viable route.

Explore Balearic Islands listings on JanusHermes

JanusHermes brings together verified listings from licensed agencies across Mallorca, Ibiza, Menorca and the wider Balearics, with prices in your currency and cost-of-living data on every property page. Browse current Spain listings, or compare the mainland coasts in the Costa del Sol and Costa Blanca guides.

This article is for general information only and does not constitute legal, tax or investment advice. Balearic tourist-licence rules, transfer-tax scales and national housing measures change frequently. Verify the ETV licence status of any specific property and confirm current rules with a licensed Spanish lawyer before committing.

A note on the numbers: where no source is named, the market figures in this article (prices, yields, costs) are indicative estimates compiled from publicly available market data and industry reporting at the time of writing. Markets move and rules change, so treat them as a starting point and verify current figures with official sources before acting on them.