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Despite the possibility of sanctions, the island, popular among British tourists, is standing firm on its sweeping ban.
13:02, Tue, Mar 24, 2026 Updated: 13:02, Tue, Mar 24, 2026
Majorca, Menorca and Ibiza are standing firm on its sweeping ban (Image: Getty)
A Spanish tourist hotspot that has imposed a ban on holiday rentals is standing firm on its decision, insisting it has acted correctly despite growing pressure from the EU to reverse the policy. Last year, to combat the crippling housing shortage and soaring property prices, which anti-tourism campaigners have long claimed are crises being worsened by overtourism, the Balearic Government implemented a widespread ban on tourist apartments.
In a massive blow to the tourism sector, the ban means no new holiday rental licences can be granted for apartments. The move has proved unpopular with the European Commission (EC). This isn't the first time the EC has raised serious concerns, as last year a formal notice was issued to the regional government.
The Balearic Government introduced the ban to combat the crippling housing shortage (Image: Getty)
The notice warned that the ban may breach the Services Directive and Article 49, which bars restrictions on the freedom of establishment for citizens from other countries.
Hitting back in September, the local Spanish government insisted on the legitimacy of the regulations. However, the EC is standing firm and is demanding that the Balearic Government make a U-turn on the regulations they deem against the law.
They argue the regulations should not be applied across the archipelago, but instead limited to specific areas within the holiday destination where the housing market is under particular pressure.
It says small islands such as Formentera could justify such a sweeping ban but Majorca, Menorca and Ibiza are too large to implement a blanket policy.
The EC argues the regulations should not be applied across all of Majorca (Image: Getty)
Majorca and the rest of the Balearics risk being hit with sanctions such as a fine, should the EC choose to open an investigation. The EC cannot directly fine an autonomous community, as responsibility lies with the relevant member state, and so with the Spanish Government.
Speaking on Monday, March 23, tourism minister Jaume Bauzá said the sun-soaked islands will not “go against their own commitment”.
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“We are convinced that we have done the right thing. We are committed to a regulation that seeks to protect residents and we cannot go against our own commitment to containment”, he said.
The rapid growth of tourist rentals across Spain means that thousands of homes that once housed long-term tenants have been converted into short-term holiday apartments, pushing locals out of their home towns and cities, according to local anti-tourism campaigners.
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