Spain crackdown as holiday let fines on brink of booming in Majorca, Ibiza and Menorca

Illegal holiday let fines could be set to rise by 25% (Image: Getty)

Holiday let fines in the Balearic Islands could rise to a maximum of £425,635 (€500,000), pending approval by the Balearic Government, reports the Majorca Daily Bulletin.

On Tuesday, the regional government will vote on a decree about illegal holiday lets, which would also include offering reduced fines to owners in return for giving up houses to the government. The maximum fine for illegal holiday lets would increase by 25% from the current £340,508 (€400,000), reserved for the most serious offenders without tourist licenses, such as properties on protected rustic land, properties subject to a government price-restriction regime, or repeat offenders. Penalties will range from a warning of £4,256 (€5,000), up to £42,563 (€50,000) for serious offences, and up to £425,635 (€500,000) for the worst.

Spain received a total of 94 million tourists in 2024 (Image: Getty)

To manage uncontrolled tourism and the spread of holiday lets, there is currently a freeze on any new tourist licences for holiday rentals in the Balearic Islands.

Anyone renting out a short-term let without the necessary license will be subject to fines on the Balearics, including Menorca, Majorca, and Ibiza.

The decree would also mean owners have the option to reduce fines by up to 80% if they make their properties available to the government, which would be able to rent them out for a period of five years.

Prices would be in accordance with the government's guidelines for limited-price housing or social renting.

Town halls and island councils would also be able to involve local police forces or state security forces such as the Guardia Civil in tourism inspections.

The measures targeting holiday rentals were introduced to curb the spread of unregulated holiday lets, especially as visitor numbers reached record highs.

Residents have been calling for action and holding protests across the country, raising concerns that tourism is driving up house prices, reducing the availability of homes, overcrowding towns during peak seasons, and destroying the environment.