How an ETV licence transfers when buying property in Mallorca

Anyone buying a property in Mallorca to let it to holidaymakers for short stays will soon encounter three letters: ETV – Estancia Turística en Vivienda. Since February 2022, a moratorium in the Balearic Islands has largely frozen the issue of new holiday rental licences. That makes transferring an ETV licence in Mallorca a central consideration in any property purchase aimed at generating rental income. This guide explains how an existing ETV licence is legally transferred when a property changes hands, what Decreto-ley 4/2025 and the March 2026 lottery mean, which licences can be transferred, how to protect the licence in the purchase contract, and why licensed properties now command a noticeable price premium.

• Everything you need to know about holiday rentals in Mallorca

What an ETV licence is – and why it has become so scarce

An ETV (Estancia Turística en Vivienda) is the official authorisation to let a residential property in the Balearic Islands to tourists for short stays. It permits rentals of less than 30 days and allows the property to be listed on platforms such as Airbnb or Booking.com. Once granted, an ETV remains valid indefinitely – it has no expiry date and does not need to be renewed periodically.

The licence is tied to a specific number of tourist places (plazas turísticas), approved for the property. Each place represents a guest bed that can legally be let. The total number of approved plazas on the island forms the quota managed by the Consell de Mallorca.

Since 11 February 2022, the Balearic government has issued no new plazas – and, in effect, no new ETVs. The moratorium was originally intended to last until new zoning requirements were introduced. That review took longer than expected, leaving the moratorium in its original form in force until 2026. In March 2026, a limited quota was allocated through a lottery for the first time since then – more on that in a separate section.

As a result, anyone wanting to enter the holiday rental market today generally needs to do so by buying a property that already has a valid ETV.

The April 2025 decree: what changed structurally

In April 2025, the government of Marga Prohens (PP), with the support of Vox, passed the decree on measures to curb tourism. It introduced several significant structural changes:

Important: The decree does not mean that existing licences expire. Anyone buying a flat in an apartment building with an existing ETV takes over a licence that remains legally valid. Only new places in this building category are prohibited.

Palma’s special case: Permanent ban on new licences

While the island-wide moratorium could, in principle, be revised through a political decision, Palma has its own rules: holiday lets in apartment buildings have been prohibited there since 2018, and in February 2026 the city amended its land-use plan (PGOU) to allow no new tourist accommodation places anywhere in the city – not even in detached houses.

For buyers, this means a Palma property without an existing ETV is almost certain never to receive a licence for short-term tourist lets. Existing Palma ETVs are therefore even rarer and more valuable than elsewhere on the island.

The 2026 lottery: 1,069 new places

In March 2026, the Consell de Mallorca opened a new application process for holiday-let licences – the first since the 2022 moratorium. The key details were:

Note: The five-year restriction on transferring newly granted licences is significant when buying or selling. Anyone who receives a new licence in the 2026 lottery cannot sell the property with a fully transferable ETV licence until 2031 at the earliest. Buyers must check this as part of their due diligence.

How transferring an ETV licence works when buying a property

In Spain, an ETV licence is generally tied to the property, not to its owner. That may sound straightforward, but the details matter: the moratorium has also temporarily restricted transfers of existing licences.

The basic legal framework

Under normal circumstances – outside moratoriums and transfer restrictions – an ETV transfer works as follows:

1. The seller provides the licence documentation showing all plazas and the registration number from the Nuevo Registro Único de Alquiler (NRUA).
2. The notary formally records the change of ownership of the property. The licence is explicitly included in the purchase agreement as part of the sale.
3. The buyer reports the change of ownership to the relevant tourism authority (Conselleria de Turisme, Govern de les Illes Balears) and updates the NRUA entry.
4. A new registration number or an update to the existing one – all platform listings must display this number from that point onwards.

What the moratorium means for transfers in progress

Research indicates that, since 2022, the moratorium has at times restricted both the granting of new licences and the transfer of existing licences. For purchases already under way or planned, have a specialist lawyer check the specific licence status and whether it can currently be transferred before paying a deposit. The legal position continues to evolve and varies according to the type of licence and the year the property was built.

Step by step: safeguarding the ETV licence when buying

Because the value of a licensed property depends substantially on a smooth transfer, you need a structured approach:

1. Request a land registry extract (Nota Simple) – Check whether the property is free of encumbrances and whether any restrictions are recorded. → Check the Spanish land registry
2. Verify the licence status – Ask to see the original ETV documents: licence number, date first granted, number of plazas and NRUA registration number.
3. Check for transfer restrictions – Licences allocated through the 2026 lottery cannot be transferred for five years. For older licences too: has a transfer been applied for recently that may still be pending?
4. Explicitly include the licence in the preliminary contract (arras) – The reservation agreement or arras contract must make the ETV an essential condition: the purchase falls through if the licence cannot be validly transferred. → Reservation agreement in Spain
5. Coordinate with the lawyer and notary – The notary must document the licence transfer in the Escritura Pública.
6. Register the change with the Conselleria de Turisme after the transfer of ownership – check the deadline and procedure under current administrative practice.
7. Update the NRUA registration – All booking platforms need the correct, up-to-date registration number.

Types of licence – and which can be transferred

Note: The ETV60 licence is tied, in principle, to the owner’s main residence. If the property is sold to someone who does not use it as their main residence, the permission to let it under this category lapses. Do not buy a property with ETV60 as an investment without first seeking legal advice.

How an ETV licence adds to a property’s value

The scarcity of transferable licences has made licensed property an asset class in its own right. The research available does not provide systematic price comparisons, but the market picture is clear: several estate agents and lawyers confirm that properties with a valid ETV licence are in significantly greater demand than comparable unlicensed properties.

Why the premium is justified by the market structure:

• Anyone buying without an existing licence can never enter the holiday rental market in Palma, and elsewhere on the island can do so only through a lottery with an uncertain outcome.
• The cost of obtaining new licences (up to €3,500 per place) and the risk of the lottery are factored into the price.
• A licensed villa or finca can generate legal rental income as soon as the keys are handed over.
• Platforms such as Airbnb require an NRUA registration number – without one, you cannot list the property.

The downside: if you pay too much for the licence, the rental income will need to justify that premium over many years. Have a return-on-investment calculation prepared before agreeing to it.

Taxes and reporting obligations when operating a transferred ETV licence

Taking over an ETV licence does not remove ongoing tax obligations. In brief:

→ More on the tax implications for non-residents: Tax on rental income for non-residents

Most common mistakes when transferring an ETV licence

1. Licence not specified in the preliminary contract Without an explicit clause in the arras agreement or purchase contract, there is no legally enforceable right to have the licence transferred. Sellers could, in theory, claim that the licence was not part of the sale.

2. Confusing an ETV60 with a standard ETV An ETV60 permits rentals for only 60 days per year and is tied to the owner’s main residence. Anyone seeking rental returns needs a standard ETV.

3. Assuming a new licence awarded by lottery can be transferred immediately Licences awarded through the 2026 lottery are subject to a five-year transfer restriction. A property with a newly awarded licence cannot be resold with that licence for at least five years.

4. Failing to verify a Palma licence for a flat in an apartment building In Palma, some older ETV licences for flats remain valid. But is the licence correctly registered in the NRUA? Is there a pending suspension by the authorities? These points must be checked before purchase.

5. Failing to update the NRUA entry after purchase Without an update to the national register, the property remains registered to the previous owner. This can lead to blocks in the event of a dispute or platform checks.

6. Offering additional services without checking IVA obligations Landlords who offer cleaning, transfers or breakfast may become liable for IVA. This is not specific to ETV licences, but it is an issue often overlooked when starting to let a property.

What comes next? Running the property and protecting its value

Once you’ve successfully taken over the ETV licence, the real work begins. Here are a few things to keep in mind:

• Cédula de Habitabilidad: The certificate of habitability must be valid and match the number of places covered by the licence. → Cédula de Habitabilidad Mallorca
• Energy performance certificate: A mandatory document for all rented properties. → Energy performance certificate Spain
• Insurance: Tourist rentals have different insurance requirements from properties used by their owners. → Contents insurance Spain
• Owners’ association (Comunidad): In flats in apartment buildings, the owners’ association may impose restrictions on tourist rentals. → Owners’ associations in Spain
• IBI and wealth tax: Ongoing taxes payable regardless of the ETV licence. → IBI tax in Spain

ETV transfer checklist when buying a property

• Obtain the licence certificate and date of initial issue from the seller
• Confirm that the number of authorised tourist accommodation places is documented
• Confirm that the NRUA registration number exists and is valid
• Have a lawyer confirm the moratorium status and whether the licence is transferable
• Check for any restriction on transfer (5 years for licences awarded by lottery)
• Identify the ETV type (standard / ETV60 / legacy Palma licence)
• Include the licence as an essential term in the arras agreement/purchase contract
• Inform the notary of the licence transfer and document it in the Escritura
• Arrange to update the registration with the Conselleria de Turisme after the transfer of ownership
• Update the NRUA entry with the new owner’s details
• Check that the Cédula de Habitabilidad is valid
• Confirm that an energy performance certificate is available
• Discuss tax obligations (IRPF/IRNR, ITAT and, where applicable, IVA) with a tax adviser

Conclusion

On Mallorca, the ETV licence is no longer a mere bureaucratic formality – it is an asset in its own right that determines whether a property can be used for tourist rentals. The moratorium in place since 2022, the permanent ban in Palma, the April 2025 decree banning new licences for flats, and the five-year restriction on transferring newly awarded licences have frozen the pool of transferable ETV licences at a scarce, structurally limited level. This makes any existing licence that is correctly registered and validly transferred a genuine selling point when buying a property.

Get it right – protect the licence in the contract, document every step of the transfer and manage the tax obligations from the outset – and you are buying not just a property, but also the right to market it legally in one of Europe’s most attractive tourism markets.

Official sources

• Govern de les Illes Balears – Conselleria de Turisme: Licences and the NRUA register → https://www.caib.es
• BOIB (Butlletí Oficial de les Illes Balears): April 2025 decree and all Balearic legislation → https://www.caib.es/govern/boib/
• Consell de Mallorca – Departament de Turisme: Zoning, quotas and the 2026 lottery → https://www.conselldemallorca.net
• Habtur – Associació d'Habitatges Turístics de Balears: Trade association offering advice on the licensing process, tel. 656 604 852 → https://www.habtur.com
• Ajuntament de Palma: Municipal rules on the ETV ban in Palma → https://www.palma.cat
• AEAT (Agencia Tributaria): Tax obligations for rental income → sede.agenciatributaria.gob.es