No Need to Panic
The Context: A Pause, Not a Prohibition
On 11 February 2022, the Decree Law 3/2022, on urgent measures for the sustainability and circularity of tourism in the Balearic Islands was published in the Official Gazette of the Balearic Islands (BOIB).
Although presented as a measure for sustainable tourism, the decree introduces a temporary suspension of new tourist licences for four years — a move that initially caused concern among investors and property owners.
But there is no reason to panic: this moratorium is temporary and aims to restructure tourism growth, not to restrict it permanently.
What Is a Moratorium?
A moratorium is a temporary suspension of a right or process — often used to delay payments or obligations.
In this case, the Balearic Government has chosen to pause the granting of new licences for:
- The creation of hotel accommodation, and
- Short-term tourist rentals.
This means that for four years, no new tourist places can be authorised while the Tourism Intervention Plan (PIAT) is being reviewed and updated.
What Happens During These Four Years?
You can still apply for a tourist licence, but its approval will be suspended until the PIAT of each island is updated.
Each Island Council (Consell Insular) — Mallorca, Menorca, Ibiza and Formentera — must determine:
- The maximum capacity for growth, and
- The total number of hotel beds and tourist rentals allowed.
These limits can never exceed the existing number of places already allocated.
If, after four years, a Council has not approved a new plan (an unlikely scenario), the pending tourist places would expire.
(Reference: Govern Illes Balears – PIAT and sustainable tourism planning)
Will This Affect the Balearic Economy
Not negatively.
As we explain in our article on the Balearic property market, real estate in the islands remains a solid and profitable investment.
The moratorium may delay short-term profitability for those seeking monthly tourist rentals, but in the medium and long term, property values continue to rise.
Even during the pandemic and economic crises, demand has remained international and diversified — coming from multiple countries, not just Spain.
Could the Moratorium Be Extended
Technically yes, but it’s unlikely.
The Decree allows for a possible extension beyond February 2026 if the Balearic Government deems it necessary.
However, extending it for another four years would likely conflict with the general economic interest of the islands.
The most realistic scenario is that, by 2026, the new PIAT will already define the updated limits and criteria for sustainable growth.
What Should Investors Do Now?
We strongly recommend preparing all necessary documentation now — so that when the moratorium ends, your application can be submitted immediately.
This includes:
- Ownership and cadastral certificates.
- Technical documentation for the property.
- Environmental compliance certificates (if applicable).
- Project or business plan for tourist activity.
If prepared correctly, you will be first in line when the new licences are open for approval.
Final Thoughts from Frau Legal
The Balearic Moratorium is not a prohibition — it is a strategic pause to modernise tourism and position the islands as a European benchmark for sustainable travel.
Investing in the Balearics remains safe, profitable, and forward-looking.
At Frau Legal, we help investors and property owners plan ahead, prepare the correct documentation, and ensure your investment is ready to operate as soon as the moratorium is lifted.
