13 · Tenanted Properties, Tenancy Law & the Okupas Risk
*If you buy an already-tenanted property in Mallorca — or plan to let one out yourself — you are buying into Spanish tenancy law along with the bricks and mortar. As a buyer there are three things you need to have grasped: tenant protection is strong, the Balearics are a special case when it comes to rent caps, and the okupas (squatter) issue is real, not just bar-room talk.*
The tenancy act LAU (Ley de Arrendamientos Urbanos, Ley 29/1994)#
The entire residential rental market runs on the LAU. What matters to you as a buyer is which of the three categories of use an existing contract falls under — that determines how tightly you are bound to the tenant.
| Type | Purpose | Framework | Tenant protection |
|---|---|---|---|
vivienda habitual (primary residence) | Permanent residence | LAU Título II | very high |
alquiler de temporada (seasonal let) | Seasonal/medium-term | LAU Título III | low |
alquiler turístico (ETV) (tourist/holiday let) | Holiday | Tourism law (→ Ch. 11) | — |
What it comes down to in practice:
- Minimum term: 5 years where the landlord is a natural person — 7 years as soon as a legal entity (juristic person) is the landlord. After that comes a further 3 years of
prórroga(automatic, tacit extension) on top. - Deposit (
fianza): 1 month. - Rent adjustment: Since 2025 the benchmark is the IRAV and no longer the IPC.
- Seasonal let: Since 2025 a seasonal contract must state the specific reason for the fixed term. If that justification is missing, it risks being reclassified as a primary residence (
vivienda habitual) — with all the tenant protection that entails.
When you buy, you buy the tenant too — subrogación (Art. 14 LAU)#
This is the point that catches international buyers off guard most often: when you acquire a tenanted property you step into the existing lease for the remaining 5 or 7 years and cannot simply terminate it early. The tenant stays put; your purchase price changes nothing about that.
On top of this comes the tanteo/retracto — the tenant's right of first refusal and right of redemption under Art. 25 LAU. Before the purchase, then, it needs to be on the table whether the tenant has effectively waived this right or was properly notified. Skip this, and the tenant can unwind the deal after the fact.
Ley 12/2023 (housing act) & rent caps — the Balearics special case 🟡#
Spain's national housing act gives the regions a tool: they can designate zonas de mercado residencial tensionado (stressed residential market zones) and impose a rent cap there. But: whether a region actually does so is its own voluntary decision.
🟡 Important for Mallorca buyers: the Balearics do NOT apply the rent cap and have designated no zonas tensionadas (regional president Prohens rejects it). A rent cap currently exists only in Cataluña, País Vasco, Navarra and A Coruña. For you that means: no state rent cap on Mallorca — with the residual risk that this could change under a future shift in politics. 🔴 The claim doing the rounds that Palma, Ibiza or Mahón were declared stressed zones in 2025 is very probably false and is contradicted by more recent sources.
Okupas & eviction (desahucio)#
Here Spanish law draws a line between two separate criminal offences — and the distinction decides how quickly you get your property back.
allanamiento de morada (breaking and entering a dwelling, Art. 202 CP) | usurpación (unlawful occupation, Art. 245 CP) | |
|---|---|---|
| Property | an occupied home (including a second home in use) | a vacant property |
| Penalty | 6 months–2 years' imprisonment | fine of 3–6 months (milder) |
| In practice | a "genuine" occupation, faster to clear | the typical vacant-property case, harder |
What has changed recently and what you need to know:
- Fast-track eviction since 2025: Ley Orgánica 1/2025 (in force since 03.04.2025) introduces a summary procedure (
juicio rápido, fast-track trial, targeting roughly ~15 days) for both offences and removes the vulnerability assessment. inquiokupa— the underrated risk: this is a tenant who moved in under a valid contract and then stops paying rent. This is not a criminal matter but a civil eviction (desahucio) — and that often drags on. In practice it is not uncommon for this to be the bigger problem than the classic squatter.
From a buyer's perspective: a vacant second home should not look visibly empty. If you let it out, check the tenant's creditworthiness and consider rent-default insurance. And one important detail: anyone who buys "in the knowledge of an occupation" forfeits access to the fast-track procedure.
❓ FAQ#
I'm buying a tenanted flat in Mallorca — can I get rid of the tenant? As a rule, not early. Through subrogación (Art. 14 LAU) you take over the contract for the remaining 5 or 7 years. Before buying, establish which type of contract it is, how long it still has to run, and whether any rights of first refusal exist.
Is there a rent cap in Mallorca? No. The Balearics have not activated the national instrument of zonas tensionadas.
Sources (selected)#
- Ley 29/1994 (LAU), Art. 9/10/14/18/25 · Ley 12/2023 · Ley Orgánica 1/2025 · Art. 202/245 CP