Mallorca remains one of Europe's strongest tourism destinations, with a high season that progressively extends from April through October. For investors, holiday rentals can deliver gross yields of 5-7% per year in well-positioned coastal locations across the southeast.
The ETV licence (Estancia Turistica en Vivienda) is the essential requirement for legal operation. Eligibility depends on urban zoning classification, the age of the property and compliance with technical standards. In the Balearics, regulation is strict and the number of licences is capped, which protects the value of existing permits.
Returns vary according to location, property type and management quality. A villa with a pool in a coastal area of Santanyi can generate between 40,000 and 80,000 euros gross per year during high season, while a well-equipped apartment in Cala d'Or typically falls in the 20,000 to 35,000 euro range.
The Balearic legal framework requires compliance with safety, accessibility, energy efficiency and tourism tax (Ecotasa) regulations. Non-compliance carries significant penalties. Engaging specialist legal advice before purchase eliminates risk and ensures the project is viable from day one.
At RE/MAX Drac, we help investors identify properties with holiday rental potential, verify ETV licence feasibility and connect with professional management companies that optimise occupancy, pricing and guest experience. A well-structured investment combines recurring income with long-term asset appreciation.