Brits could be priced out of Majorca holidays as accommodation prices surge by 20%

Tourists heading to the holiday hotspot of Majorca could soon be priced out of the market as Spain introduces a new wave of sweeping regulations on short-term rentals.The new rules state that as of July 1, 2025, any property advertised for short stays on platforms such as Airbnb or Booking.com must be officially registered to operate legally.

Tourism bosses warnthese regulations governing holiday lets with leave hordes of holidaymakers visiting Majorca are "likely to be left without accommodation". The stark warning from the Spanish Federation of Tourist Housing and Apartment Associations (Fevitur) is alerting officials and tourists alike that the new system will lead to an increase in the black economy and a rise in illegal housing. It is feared the latest crackdown could be costly for Spain with losses of £11.7 billion (€13.737 billion) expected to hit the economy between July and December.

President, Silvia Blasco, in a statement: "Families who have booked an apartment or holiday home are likely to be left without accommodation, as a large part of the legal supply cannot be registered in the Single Digital Window system and will disappear from the platforms."

Meanwhile Tony Redondo, Founder at Cosmos Currency Exchange says the new law has already caused prices in holiday hotspots to soar by 20%.

"Spain's new Airbnb law will delist thousands of short-term rentals. British buy to let owners face income loss when the unlicensed properties are removed. Those who try and register will face higher compliance costs or have to sell", said Tony.

Properties that did not comply by the July deadline have been removed from online platforms like Airbnb and Booking.com, with hosts risking fines, being banned from re-listing, and facing potential delays if they attempt to rejoin later.

A leading mortgage advisor warns the move will leave Brits "pulling their hair out".

Pete Mugleston, Mortgage Advisor & Managing Director at Online Mortgage Advisor, said: "If you're a Brit with a property in Spain that you let out through Airbnb, these changes will have you pulling your hair out. The Spanish authorities are doing this to combat locals being priced out of the housing market, due to the explosion in the short-term rental market in recent years."