What does a holiday rental in Mallorca earn?
On stock Terrivio tracks, gross yield in Mallorca is typically 5–8% and net yield 2–4.5% after operating costs and purchase costs. The gap is the whole story: platform fees, cleaning, management, energy, insurance, community charges and local tourist tax often absorb 35–50% of gross revenue.
Worked example: a property at €390,000 let at €165 per night with 55% occupancy books about 201 nights and €33,165 of annual revenue (8.5% gross yield). After 26% variable costs and €4,800 of fixed costs, NOI is about €19,742 — 4.5% net on a total investment of €436,800.
Seasonality — do not annualise a peak week
May–October carries most of the year. Winter occupancy exists in Palma and the south-west but is thin in the north and east. A blended 50–60% occupancy is a serious base case for a licensed villa; 75% is a peak-season fantasy.
Unlicensed 'tourist rental' is the most common way buyers overstate yield. If the listing does not show a licence number, model long-term residential rent (much lower) or walk away. ITP on resale is 8–13% depending on the island bracket.
Purchase costs and tax in Mallorca
Budget about 12% above the asking price for acquisition costs in Spain. Main item: ITP 6–10% (resale) · 10% VAT + 1.5% AJD (new-build). These costs are gone on day one — that is why Terrivio divides NOI by total investment, not by asking price.
Non-resident EU/EEA owners pay 19% on net rental income (costs deductible); non-EU owners 24% on gross. Annual IBI property tax and Plusvalía on resale apply.
Tourist tax: Catalonia & Balearics: ~€2–7 per night. Usually collected from guests, but it still sits inside your competitive nightly rate.
Short-term rental rules in Mallorca
The Balearics restrict new holiday-rental licences; many municipalities have stopped issuing them. Existing licences can be valuable and are not automatically transferable with the deed. Spain's national registry number is still required on top of the island licence.
Country overlay (Spain): A regional tourist licence (VUT/HUT) plus the national single registry number (mandatory since July 2025) are required. Barcelona is phasing out tourist flats by 2028; the Balearics and parts of Andalusia restrict new licences.
Popular towns include Palma, Alcúdia, Sóller, Cala d'Or and Pollença. Each has a different seasonality and licence map — Terrivio scores regulation for the exact city on a listing analysis.
How to calculate yield in Mallorca
- Estimate annual revenue. Use a blended ADR and annual occupancy, not a peak-week rate. Booked nights = 365 × occupancy. Then revenue = ADR × booked nights.
- Subtract operating costs. Variable costs (platform, cleaning, management) plus fixed costs (insurance, utilities, community fees, maintenance). A starting point in Mallorca is 26% variable plus the fixed costs in the calculator.
- Add purchase costs to the price. Include transfer tax, notary, registry and agency — about 12% in Mallorca.
- Divide NOI by total investment. That is net yield. Compare it with your mortgage rate and with a long-term rental fallback before you bid.
Frequently asked questions
Is a holiday home in Mallorca a good investment in 2026?
It depends on licence, micro-location and whether you need the weeks yourself. Typical net yields are 2–4.5%. Always underwrite net, never gross, and never assume a peak-week rate runs 365 days.
How do I calculate rental yield in Mallorca?
Net yield = (annual revenue − variable costs − fixed costs) ÷ (purchase price + acquisition costs). Annual revenue is ADR × 365 × occupancy. The calculator on this page does that with Mallorca defaults.
What are purchase costs in Mallorca?
Plan about 12% of the price: ITP 6–10% (resale) · 10% VAT + 1.5% AJD (new-build), plus notary, registry and any agency fee.
Do I need a licence to let in Mallorca?
The Balearics restrict new holiday-rental licences; many municipalities have stopped issuing them. Existing licences can be valuable and are not automatically transferable with the deed. Spain's national registry number is still required on top of the island licence.