Renovating an apartment for holiday rentals in Mallorca only makes sense if the property already has a tourist accommodation license (ETV), because new tourist accommodation units in multi-family buildings in the Balearic Islands have been prohibited since April 16, 2025, and the moratorium on new licenses remains in effect. If your apartment already has a license, a well-planned renovation of the bathrooms, kitchen, air conditioning, and soundproofing can significantly increase occupancy and the average rental rate. The typical investment ranges from €600 to €1,100 per square meter.
There's one question you should answer before spending a single euro on renovations: can your apartment legally be used for tourist accommodation in Mallorca today? Because the regulations have changed a lot, and renovating an apartment that will never get a license is just throwing money away. Let's break it down.
Can a holiday rental apartment in Mallorca be renovated in 2026?
Renovating an apartment for holiday rentals in Mallorca is only profitable if the property already has a tourist accommodation license (ETV). Since April 16, 2025, it has been prohibited to create new tourist accommodation units in multi-family dwellings (apartments in a building with multiple residents) throughout the Balearic archipelago, except for terraced or semi-detached houses, and the moratorium suspends the granting of new licenses.
To put it simply: if you buy or own an apartment in a building without a tourist license, a renovation won't grant you access to rent it to tourists. The only way to do this today is to acquire a property that already has a valid tourist license. If your apartment does have one, then yes: renovating it is one of the best investments to improve its profitability. And if it doesn't, there are still legal alternatives, which we'll discuss below.
What requirements must a flat for tourist rental in the Balearic Islands meet?
A holiday rental apartment in the Balearic Islands must have an ETV license and a registration number in the Tourism Registry, in addition to meeting technical and equipment requirements. From July 2025, all tourist accommodations require an official registration number in the Balearic Islands Tourism Registry.
These are the basic requirements that the property must meet:
- Valid certificate of occupancy.
- Energy efficiency certificate.
- Fully equipped: equipped kitchen, hot/cold air conditioning, hot water and sufficient furniture.
- First aid kit, fire extinguisher and evacuation plan.
- Approval of the community of owners by a qualified majority of 3/5, according to the reform of the Horizontal Property Law of April 2025.
Many of these issues—air conditioning, energy efficiency, layout—are resolved precisely through renovation. That's why those who inherit or buy a licensed property often renovate it before moving in.
What renovations increase the profitability of a tourist apartment?
The renovations that most increase the profitability of a vacation rental are those that improve the guest experience and reduce complaints: new bathrooms, a functional kitchen, good air conditioning, and soundproofing. A well-maintained and comfortable apartment is more attractive to tourists and allows for higher rates and better reviews.
Where the investment is most noticeable:
- Bathrooms: the point that most penalizes a review. A renovated bathroom modern and easy to clean is a priority.
- Kitchen: a functional kitchen and being equipped raises the perceived category of the apartment.
- Air conditioning: Efficient air conditioning in all rooms is almost mandatory in Mallorca summers.
- Soundproofing and carpentryWindows that insulate against noise and heat improve the experience and lower the energy bill.
- Photogenic: floors, lighting and finishes that look good in the photos of the advertisement, where the reservation decision is made.
It's not about renovating for the sake of renovating, but about investing where the guest notices and pays for it.
How much does it cost to renovate a holiday rental apartment in Mallorca?
Renovating an apartment for holiday rentals in Mallorca costs between €600 and €1,100 per square meter in 2026 for a complete, mid-range renovation, including materials. A 70 m² apartment intended for tourist rentals typically requires an investment of between €45,000 and €75,000 for a complete renovation.
The key to a successful holiday apartment is return on investment: every euro invested in comfort is recouped through occupancy and rental rates. That's why it's advisable to finalize your budget before starting and choose materials that can withstand heavy use, which is far greater than in a regular home. We can help you estimate your investment in our guide on How much does a complete renovation cost? and, if the apartment is old, in renovating an old apartment in Palma.
What regulations govern holiday rentals in Mallorca?
Holiday rentals in Mallorca are regulated by the Balearic Islands Tourism Law, along with the moratorium on tourist accommodation places in force since 2022 and the reform of the Horizontal Property Law of 2025. These rules determine which homes can be used for tourism and under what conditions.
The three current pillars are:
- Moratorium on places: The creation and exchange of new tourist places in Mallorca has been suspended.
- Prohibition in multi-family buildings: from April 2025, no new places will be admitted in apartments in residential buildings.
- Majority of the community: the reform of the Horizontal Property Law requires the favorable vote of 3/5 of the owners for tourist use.
Before investing in renovations for tourist purposes, always verify the exact legal status of your property with the Tourism Registry. The regulations are among the strictest in Spain, and the penalties for illegal rentals are high.
Holiday rental or seasonal rental: what to do if your apartment doesn't have a license?
If your apartment does not have an ETV license and cannot obtain one, the legal alternative is seasonal rental, regulated by the Urban Leases Law and not because of tourism regulations. It does not require a tourism license, although it has its own rules regarding duration and purpose.
| Aspect | Holiday rental (ETV) | Seasonal rental |
|---|---|---|
| Tourist license | Mandatory | Not necessary |
| Duration | Short stays, by the day | Weeks or months, by season |
| Regulations | Balearic Islands Tourism Law | Urban Leases Law |
| Feasibility in apartments without ETV | Blocked in 2026 | Allowed |
A renovation can make a seasonal rental apartment just as profitable: students, relocated professionals, or winter residents value comfort as much as tourists. The choice of renovation is yours; our job is to leave the apartment spotless for either type of tenant.
When is it NOT advisable to renovate an apartment for tourist rental?
It's not advisable to renovate an apartment for tourist rentals when the property doesn't have, and can't obtain, a tourist accommodation license: the renovation won't solve the legal problem. Nor is it advisable if the homeowners' association has already voted against tourist use, because without their approval, the activity is unfeasible.
And it's wise to stop if the numbers don't add up: in areas with high competition and falling prices, an expensive renovation can take years to recoup its costs. In those cases, a more modest renovation geared towards seasonal rentals or resale is usually more profitable. We'll give you our honest opinion after seeing the apartment and reviewing the figures.
Frequently asked questions about renovating a holiday rental apartment in Mallorca
Can I get a holiday rental license for my apartment in Mallorca if I renovate it?
No. Renovating an apartment does not grant a tourist license. Since April 2025, new tourist accommodation units in multi-family dwellings in the Balearic Islands have been prohibited, and the moratorium on licenses remains in effect. You can only rent out an apartment as a tourist rental if it already has a valid tourist license; in that case, renovations do improve its profitability.
What technical requirements does a tourist apartment in the Balearic Islands need after a renovation?
A holiday apartment in the Balearic Islands requires a certificate of occupancy, an energy efficiency certificate, a fully equipped kitchen, air conditioning (heating and cooling), hot water, and safety features such as a fire extinguisher and an evacuation plan. Renovating is the ideal time to fulfill all these requirements at once and then register the property.
How much does it cost to renovate a 70 square meter apartment for tourist rental?
Completely renovating a 70 m² apartment for holiday rentals in Mallorca costs approximately between €45,000 and €75,000, including materials, depending on the quality and scope of the work. It's advisable to prioritize bathrooms, kitchens, and air conditioning, as these are the aspects that most influence reviews and the rate you can charge.
Do I need permission from the homeowners' association for a vacation rental?
Yes. Since the reform of the Horizontal Property Law in April 2025, starting a holiday rental in an apartment in a building with multiple owners requires the approval of 3/5 of the residents. Without this approval, the tourist activity is not viable, no matter how much you renovate the property.
Are you planning to renovate your holiday apartment in Mallorca? Let's talk.
If your apartment already has an ETV license or you're going to use it for seasonal rentals, we can get it ready to perform at its best. We are a Apartment renovation company in Mallorca family-run business with a fixed labor price, warranty, and 100% financing. We'll visit you, assess which investment makes sense based on your goals, and provide you with a clear quote. Book your appointment here or write to us from contact. And if you want to see the full service, you can find it at apartment renovations in Mallorca.
This content is for guidance only and does not replace legal advice or consulting the specific registration status of your property with the Tourism Registry of the Balearic Islands.
