Palma’s mayor has announced a sweeping ban on new tourist rental licences of any kind, marking a major shift in the Balearic capital’s housing and tourism policy.
Jaime Martínez, the mayor of Palma, confirmed that the city council will prohibit new tourist rentals in all their forms within the municipal area, according to a news report by Europa Press. The 639 existing legally licensed homes will remain, but no new licences will be granted. The measure is expected to be approved in the next council meeting or the one after, with retroactive effect of three months—meaning new applications are already effectively frozen.
The mayor framed the move as part of Palma’s push for “quality over quantity” in tourism and a bid to contain illegal supply. According to Exceltur data cited by Martínez, Palma has reduced its stock of illegal tourist accommodation by 18% in just two years—well above the 3.7% average among 25 other Spanish cities.
Party boats and hostels next on the list
The clampdown doesn’t stop with private holiday lets. From next year, so-called “party boats” will also be banned from operating along Palma’s seafront, and the council plans to block new hostel openings, encouraging existing ones to convert into other forms of accommodation.
A balancing act between tourism and housing
The measure is likely to ignite debate in Mallorca’s property and tourism sectors. Supporters will argue that tightening tourist rental supply helps restore balance to the local housing market and quality of life for residents. Critics, however, will see it as another blow to property owners and small investors, and a sign that Palma is doubling down on restrictions rather than tackling the underlying shortage of affordable homes.
