The Spanish authorities are tightening control over the short-term rental market in popular resorts such as Mallorca, Menorca, and Ibiza.
The essence of the new rules
The maximum fine for illegal rentals will increase to €500,000, which is 25% more than the previous limit. At the same time, fines will be differentiated: minor violations, such as lack of registration, may result in a warning or a fine of €5,000, while systematic violations, including rentals in protected natural areas or repeat offenses, will be punishable by fines of up to €50,000–500,000.
At the same time, a freeze on new tourist rental licenses is being introduced to stop the uncontrolled growth of supply. The authorities are also offering violators an alternative: if the owner agrees to transfer the apartment or house to the state for five years for use as social housing, the fine can be reduced by 80%.
Why these measures are necessary
The Balearic Islands have been dealing with the effects of mass tourism for a few years now. Because of illegal rentals, housing prices have skyrocketed, and locals are finding it harder and harder to rent apartments in their own towns. In places such as Palma de Mallorca, Ibiza Town, and Ciutadella, residential areas are gradually being transformed into tourist zones, causing protests among the population.
In addition, the uncontrolled flow of vacationers puts a strain on transportation, utilities, and the environment. In response to these problems, the Balearic Islands government is not only tightening penalties but also expanding the powers of inspection authorities. Now, not only municipal services but also the national police, the Guardia Civil, will be involved in enforcement.
Consequences for tourists and property owners
For tourists, the new rules may mean fewer rental options, especially on platforms such as Airbnb and Booking.com, where unlicensed listings are actively removed. It is now extremely important for property owners to check the legal status of their rentals to avoid huge fines.
Will similar measures be introduced in other regions
The experience of the Balearic Islands could set a precedent for other European tourist destinations such as Barcelona, Amsterdam, and Venice, which are also experiencing tourist oversaturation and an affordable housing crisis. If strict rental controls prove effective, other countries and cities may adopt this regulatory model.
In Spain, according to the National Institute of Statistics (INE), annual harmonized inflation in March 2025 fell to 2.2% from 2.9% in February, the lowest rate in the last five months and below the forecast of 2.6%. The decline in inflation was driven by a drop in electricity prices due to increased hydropower production following heavy rainfall, as well as lower prices for fuel and motor oil.
Core inflation, which excludes fresh food and energy prices, also fell to 2.0% year-on-year, reaching its lowest level since November 2021.
The Spanish economy grew by 0.8% in the fourth quarter of 2024 compared to the previous three months, according to the national statistics agency INE, which presented the final data. The figure coincided with the previous estimate and with the growth rate in the third quarter.
Consumer spending in Spain in October-December increased by 1% compared to the previous quarter, government spending increased by 0.3%, and business investment by 2.9%. Exports of goods and services increased by 0.1%, imports by 1.4%.
The industrial sector recorded an increase in production by 0.3%, the construction sector by 2.7%, and the services sector by 1%.
In annual terms, Spain’s GDP grew by 3.4%, while previously it was reported to have risen by 3.5%. At the end of 2024, according to the final data, the Spanish economy grew by 3.2%, this data was confirmed.
Source: http://relocation.com.ua/spains-economy-grew-by-only-08/
Italy and Spain have made it clear that they are not ready to support the European Union’s proposal to allocate around EUR 40 billion in military aid to Ukraine this year, with each country contributing according to the size of its economy, Reuters reported on Tuesday.
Following a meeting on Monday of foreign ministers from the 27 EU member states in Brussels, Kallas said her proposal had “broad political support” and discussions were now moving to the details.
Diplomats said the proposal has some support from northern and eastern European countries. But some southern European capitals were more reticent, reflecting a division between those geographically closer to Russia, which have given more aid to Ukraine, and those farther away, which have given less, as a percentage of their economies.
According to the Kiel Institute for the World Economy think tank, Estonia, Denmark and Lithuania lead Europe in this area, allocating more than 2 percent of their GDP to aid Kiev between January 2022 and December 2024. At the same time, Italy, Slovenia, Spain, Portugal, Greece and Cyprus are among those who have allocated the least, committing less than 0.5% of their GDP.
Speaking ahead of the meeting, ministers from Italy and Spain – the EU’s third and fourth largest economies – said it was too early to take a final position on the proposal.
Italian Foreign Minister Antonio Tajani said the proposal would need to be discussed in detail in light of upcoming events. “We are waiting for a phone call between Trump and Putin to see if there will be any steps forward to achieve a ceasefire,” he said, adding that Italy must also find money to increase its own defense spending. “There are many expenses that need to be addressed,” he added.
Spanish Foreign Minister Jose Manuel Albares said: “We will see how the debate goes, but there is no decision on this issue yet.”
Albares said Spain had already pledged 1 billion euros in military aid to Ukraine this year. He said Madrid did not have to “wait for the High Representative (Callas – IF-U) to make any proposal” to show that Kiev could count on his support.
During his visit to Lviv, Spanish Foreign Minister Jose Manuel Albares Bueno announced an additional EUR 10 million in humanitarian aid to Ukraine.
According to the Spanish Foreign Ministry, Albares visited Ukraine on January 28 for the third time since the start of Russia’s full-scale aggression.
Albares, along with his Ukrainian counterpart Andriy Sybiga and UNESCO Director-General Audrey Azoulay, inaugurated a cultural center created through the Spanish-University of Spain Development Cooperation Trust Fund. The center, funded by AECID, was created to create a space specifically dedicated to culture as a factor of peace and resilience in the wartime and post-war context in Ukraine, a country whose cultural productive structure lost 90% of its resources due to the war unleashed by the Russian invasion.
“This center complements Spain’s comprehensive commitment to Ukraine’s reconstruction, which is reflected today in a new announcement of EUR 10 million from the Spanish Humanitarian Aid Cooperation, adding to the 100 million that Spain has provided to Ukraine since the beginning of the war,” the statement said.
This area of humanitarian aid is complemented by another – reconstruction, which has accumulated EUR400 million since the beginning of Russian aggression.
Albares also visited a hospital in Lviv, where he announced that Spain would provide a Spanish team of medical trainers to help medical professionals in the hospital.
Albares reiterated Spain’s support for Ukraine during the Russian aggression. In particular, the training of the Armed Forces of Ukraine in Spain includes about 7000 trained military personnel.
In addition, Albares also reaffirmed support for Ukraine’s accession process to the European Union, which began during Spain’s EU presidency, reminding Ukraine that Spain has always expressed its strong support for it.
Spanish authorities are planning to introduce a 100% tax on real estate purchases for non-EU residents. This measure is part of a plan presented by Prime Minister Pedro Sanchez aimed at overcoming the housing crisis and ensuring the availability of housing for local residents, the Financial Times reports.
The head of government said that EU non-residents annually buy 27 thousand residential properties in Spain, mainly “for the purpose of speculation”.
Spain is one of the European countries where public discontent is growing due to difficulties in finding affordable housing for purchase or rent amid a sharp rise in real estate prices and a significant lag between new construction and demand.
Over the past 10 years, housing prices in Europe have jumped by 48%, which is about twice the growth in household income over the same period, Sanchez said.
Spanish real estate is in high demand among people who buy vacation homes or want to move to a country with a warmer climate.
Such purchases are already subject to a number of taxes, the amount of which depends on the region and whether the transaction is on the primary or secondary market. In total, these taxes range from 7% to 12%.
Other measures proposed by the government include the transfer of more than 3,300 houses and approximately 200 hectares of land to a new state-owned company for the construction of social housing, stricter regulation of seasonal rentals, the restoration of empty buildings, and the provision of incentives to homeowners who rent out their homes at affordable prices.
