Quick answer
Palma (and most of Mallorca) prohibits STR in multi-family apartment buildings. Detached/semi-detached houses may obtain a tourist licence subject to a hard regional cap that has been at zero new licences since 2018.
Worst-case scenario
Effectively closed for apartment investment; houses are licence-rationed.
How Palma's rules shape the market
FAQ
Do I need a license to run an Airbnb in Palma?
Yes, Palma requires a license or permit to operate a short-term rental.
Beyond the rules
See Palma's income, occupancy, and neighborhood data
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