Renting out a room in Mallorca: rights, contracts and tax

If you rent out a room in Mallorca – whether in your own flat or in a house where you also live – you are entering a legal grey area that many people underestimate. Renting out a room in Mallorca is not the same as letting an entire flat: Spanish rental law draws a clear distinction between residential tenancies and room rentals, which are subject to different rules. This guide explains which type of contract to use, what rights landlords and tenants have, what the Registro Único has meant since July 2025, and how to declare your rental income correctly – whether you are a resident or a non-resident. By the end, you will know what to look for in a contract, which mistakes can prove costly and what the authorities actually check.

• Everything you need to know about long-term renting in Mallorca

What is alquiler de habitación – and what is it not?

Renting out a room (alquiler de habitación) means letting an individual room within a property. The landlord usually lives in the flat or house too, or at least owns the property as a whole. This is a crucial distinction from letting a complete, self-contained flat.

Spain’s rental law, the Ley de Arrendamientos Urbanos (LAU) of 1994 – last substantially reformed in 2019 – expressly defines residential tenancies in Article 2: it applies only when an entire property is let as the tenant’s permanent home. Room rentals, by contrast, fall under Title III of the LAU (arrendamiento para uso distinto del de vivienda) or are often simply set up as a contract under the Civil Code (Código Civil), because the LAU’s tenant protections do not automatically apply.

Note: If you do not live in the property yourself and rent individual rooms to several people, the tax authorities or local council may classify this as a commercial activity or holiday letting – with very different obligations.

What types of contract are there – and which one is right for you?

Before drawing up a contract, you need to know what the room is being rented for. In practice, there are three relevant situations:

1. Long-term room rental (residential)

The tenant lives in the room as their permanent residence and shares a kitchen or bathroom with the landlord or other tenants. In this case, a rental agreement under the Código Civil is recommended, with clear provisions covering:

• Rental period and notice periods
• Rights to use shared areas
• House rules (quiet hours, guests, cleaning)
• Utility costs (electricity, water, WLAN – usually shared proportionally)

2. Seasonal rental (alquiler de temporada)

The room is rented for a specific period agreed in advance – for example, to a student or seasonal worker. This contract is not for tourism purposes, falls under LAU Title III and does not require tourist certification, but since July 2025 may require a registration number in some circumstances (see the Registro Único section).

3. Short-term tourist rental of a room

If you rent a room to tourists by the day or week through platforms such as Airbnb, the rules of the Balearic tourism law apply. This is an entirely different legal category – more on this in the ETV licence section.

The rental agreement: what must it include?

Although a room rental agreement can be made without formalities, a written contract is essential – if a dispute arises, it is your only protection. Every room rental agreement on Mallorca should include the following:

1. Full personal details of both parties (name, NIE/DNI, address)
2. Detailed description of the room (size, location within the property, furnishings and facilities)
3. Rental period with specific start and end dates and terms for renewal
4. Monthly rent in euros, due date and payment method
5. Deposit (depósito): amount, when it is payable and how it will be returned
6. Rights of use for the bathroom, kitchen, terrace, etc. – as precisely as possible
7. House rules: guests, pets, smoking and quiet hours
8. Utilities and other charges: Who pays for electricity, water and Wi-Fi – shared proportionally or at a fixed rate?
9. Notice periods for both parties
10. Inventory (attached, with photos)

Note: If the contract does not specify how it can be terminated, the general provisions of the Código Civil apply – which can lead to long notice periods or disputes.

Deposit and utility costs: What is customary?

For the deposit, the general rule for a private let is that it must be returned within a reasonable period after the tenancy ends, provided no damage is proven. Document any damage in writing and with photographs – before and after the tenancy.

Registro Único: the new registration requirement from July 2025

Since 2 January 2025, a single national register for short-term lets (Registro Único) has applied throughout Spain. The key deadline: from 1 July 2025, all landlords offering short-term accommodation for payment through online platforms must have a valid Número de Registro Único and display it clearly in every online listing.

This expressly applies not only to entire holiday homes, but also to:

• Seasonal lets
• Rooms let to a succession of guests
• Lets on ships and boats

What this means for you: If you let a room long-term to one person (e.g. an employee or student) without using an online platform, you are generally not affected. But as soon as you use Airbnb, Booking.com or similar platforms – even for seasonal lets – you need this number.

Note: The Registro Único is an additional requirement that applies throughout Spain. In the Balearic Islands, it does not replace the ETV licence for tourist holiday lets – both requirements apply.

ETV licence and holiday lets: steer clear of the grey area

If you want to let a room to tourists by the day in the Balearic Islands, you need an ETV licence (Estancia Turística en Viviendas). First, the most important point: an ETV registration always covers the entire property, not individual rooms (Art. 50.13 Ley 8/2012). Since Decreto-ley 4/2025, flats in apartment buildings can no longer be newly registered. The exception is letting your own main residence for no more than 60 days a year (ETV60).

Anyone who offers tourist accommodation without a valid ETV registration risks fines under Balearic tourism law: depending on the severity of the offence, up to €5,000, €5,001 to €50,000 or €50,001 to €500,000. Inspectors carry out active checks, and holidaymakers can also check whether accommodation is legal using an official online tool.

The line between permitted seasonal letting and illegal holiday letting is often fine:

→ More on this topic: ETV licence Mallorca

Landlord’s rights

As a landlord letting a room, you have clear rights – whether or not you live in the property yourself:

• The right of access to your property, provided this is set out in the contract and you give reasonable notice
• The right to receive rent on time
• The right to terminate the tenancy for non-payment or breach of contract (set out notice periods in the contract)
• The right to have the room returned in its original condition (allowing for normal wear and tear)
• Right to check how communal areas are used (to enforce the house rules)

Note: Because you live in the property yourself, you generally have more practical control as a room landlord than you would if you let the entire property – but legally, the contract remains the deciding document.

Tenant’s rights

A room tenant also has rights, despite having less statutory protection than someone renting an entire home:

• The right to use the room and communal areas as agreed in the contract
• The right to privacy in their room (no unannounced entry)
• The right to have their deposit returned at the end of the contract without unjustified deductions
• The right to suitable living conditions (a working bathroom, electricity and water)
• Protection against termination in line with the notice periods agreed in the contract

Important: The 5-year minimum term under the LAU does not apply automatically here. Room tenants therefore cannot rely on this protection unless they have a residential tenancy agreement for an entire property.

Tax: How do you declare income from letting a room?

This is where most mistakes happen. Your tax obligations depend on whether you are a resident or non-resident.

Residents (IRPF)

If you are tax resident in Spain, you must declare income from letting a room on your income tax return (IRPF). The income must be declared as income from letting property.

Deductible expenses (gastos deducibles) that you can claim proportionately:

• A proportion of mortgage interest
• A proportion of depreciation (amortización)
• Repairs and maintenance (proportionate to the room being let)
• Pro-rata IBI, community fees and insurance
• Pro-rata utility costs (electricity, water)

The deductible share needs to be calculated: If you rent out a 20 m² room in a 100 m² flat, you can claim 20% of the total costs – but only for the days it was actually rented out.

Please note: The 60% tax reduction on net rental income (for residential lettings under LAU Título II) generally does not apply automatically to room rentals, as there is no standard residential tenancy agreement. Have a tax adviser check this.

→ More: IRPF deductions for landlords in the Balearic Islands

Non-residents (Modelo 210)

If you are not tax-resident in Spain, you must declare rental income using Modelo 210. For rental income from 2026 onwards, submit the return – reporting income less your share of deductible expenses – between 1 and 20 April of the following year (Orden HAC/623/2026); for income earned in 2025, the deadline was still 1 to 20 January 2026.

For days when the room is vacant and not rented out, you must pay the corresponding share of imputed income tax (based on the cadastral value). The filing deadline for this is 31 December of the following year.

→ Details: Tax on rental income for non-residents in Spain

Overview of tax obligations

VAT on room rentals?

Simply renting out a room for residential use is generally exempt from VAT. It is different if you provide hotel-like additional services (breakfast, daily room cleaning, laundry service): VAT may then apply. The same applies if you bill through agencies that issue invoices themselves.

If in doubt, consult a tax adviser with Mallorca experience before deciding on your business model.

The most common mistakes when renting out a room in Mallorca

Lawyers and tax advisers in Mallorca see these mistakes time and again:

1. No written contract – if there is a dispute over the deposit or termination, you have little protection.
2. Choosing the wrong type of contract – a LAU Title II contract is legally problematic for a room rental.
3. No inventory – claiming compensation for damage is difficult without documentation.
4. Holiday letting without an ETV licence – fines of up to €500,000, depending on the severity of the offence.
5. Forgetting the Registro Único – mandatory from 1 July 2025 for rentals advertised on online platforms.
6. Failing to declare the tax – Rental income is always taxable, however small the amount.
7. 60% IRPF reduction claimed incorrectly – does not automatically apply to room rental agreements.
8. Deposit not returned on time – may result in liability for damages.
9. Utility costs not clearly agreed – almost always leads to disputes.
10. No house rules – essential, especially when the kitchen and bathroom are shared.

Checklist: Renting out a room in Mallorca

• Type of agreement established (permanent residence, seasonal or tourist accommodation)?
• Written agreement drawn up with all required details?
• Deposit agreed and proof of payment recorded?
• Inventory with photos prepared and signed by both parties?
• Tenant’s NIE number included in the agreement?
• Tax adviser informed about the rental income (IRPF or Modelo 210)?
• For online rentals: Registro Único registration applied for (mandatory from July 2025)?
• For tourist accommodation: ETV licence in place?
• House rules attached to the agreement?
• Arrangements for utility costs set out in writing?

What comes next? Important related topics

If you rent out a room, you should also keep the wider tax and legal implications in mind:

• IBI: Property tax is generally paid by the landlord – it is worth knowing whether you qualify for an IBI reduction. → IBI reduction Mallorca
• Owners’ association: Renting out a room in a shared property can raise questions under the rules of the owners’ association. → Owners’ association Spain
• Cédula de Habitabilidad: The room must be in a property with a valid occupancy certificate. → Certificate of Habitability in Mallorca
• Bono Alquiler Joven: Young renters in the Balearic Islands can apply for rent assistance under certain conditions. → Bono Alquiler Joven in the Balearic Islands
• Ley Vivienda in the Balearic Islands: The 2023 housing law also introduced some rules for landlords in the Balearic Islands. → Ley Vivienda in the Balearic Islands

Conclusion

Renting out a room in Mallorca is legal and can be a worthwhile source of income – provided you know the rules. The most important step: Choose the right type of contract. Room rentals are not subject to the LAU’s strong protections for residential tenants. That gives you more flexibility as a landlord, but it also means you need to set out all the terms in the contract yourself. From July 2025, the Registro-Único requirement also applies to every rental listed on an online platform. Renting to tourists without an ETV licence, on the other hand, remains a costly risk. Have someone who knows the Balearic Islands property market review your contract and tax position – if something goes wrong, it could save you far more than it costs.

Official sources

• Ley de Arrendamientos Urbanos (LAU): https://www.boe.es/buscar/act.php?id=BOE-A-1994-26003
• Registro Único de Arrendamientos de Corta Duración (Real Decreto 1312/2024): https://www.boe.es
• Agència Tributària de les Illes Balears (ATIB): https://www.atib.es
• Agencia Estatal de Administración Tributaria (AEAT) – Modelo 210: sede.agenciatributaria.gob.es
• Govern de les Illes Balears – Turisme: https://www.caib.es/cathosfront/cens
• Consell de Mallorca: https://www.conselldemallorca.net

Document rent payments with receipts

For a bank transfer, the payment can be traced through the bank statement. A clear payment reference – such as ‘Room rent September 2026’ – helps link the payment to the correct month. Keep the bank statement with the rental agreement.

For a cash payment, you should give the tenant a signed receipt and keep a copy yourself. It should include the payer’s name, the amount received, the payment date, the rental period and what the money was paid for. List rent, additional charges and the deposit separately if you receive several amounts at the same time. This makes it possible to see what each payment was for when the agreement ends.

This is not legal or tax advice.