PALMA DE MALLORCA – The Spanish government is celebrating a massive shift in the country's tourism landscape following a sharp decline in short-term holiday rentals. New data reveals that the Balearic Islands alone have seen nearly 20,000 tourist apartments removed from the market, marking a significant victory for local authorities in their ongoing battle against illegal holiday lets.
The Minister of Social Rights, Consumer Affairs and Agenda 2030, Pablo Bustinduy, hailed the figures as definitive proof that "regulation and intervention work." According to recent data from the National Statistics Institute (INE), the number of holiday flats marketed on digital platforms across Spain plummeted by 12.4% year-on-year by November 2025.
The End of "Illegal" Dominance
At a press conference following a Council of Ministers meeting, Bustinduy described the previous scale of unregulated holiday rentals as "absolutely inconceivable." He highlighted that the government’s aggressive legal stance has already forced major platforms like Airbnb to remove tens of thousands of listings.
The crackdown hasn't just been verbal; it has been financial. Last December, the Ministry imposed a staggering €64 million fine on a major rental platform for hosting illegal advertisements.
“We won in court on several occasions. Those advertisements have been removed,” Bustinduy celebrated, noting that the current supply of holiday homes is at its lowest level in three years.
Regional Impact: Winners and Losers
While Andalusia still leads Spain with over 91,000 tourist apartments, other regions have seen dramatic reductions:
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Madrid: Saw the sharpest decline at -26%.
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Valencia: Closely followed with a -25% drop.
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Galicia: Experienced a -22.5% reduction.
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The Balearics: Saw a -19.8% drop, bringing the total number of registered holiday flats down to 19,398.
In Palma, holiday rental properties are now technically banned, a move reflected in the dwindling numbers. The Ministry of Housing recently notified online platforms of an additional 86,275 illegal listings nationwide, demanding their immediate removal. These properties failed to secure the mandatory registration numbers required under the new laws that took effect in July 2025.
A Divided Public Opinion
The government's "celebration" is met with mixed reactions from the public and industry experts. Supporters of the crackdown argue that the reduction in tourist flats will help alleviate Spain’s housing crisis and lower rental prices for residents.
However, some critics warn of a "double whammy." Critics suggest that reducing the supply of holiday rentals gives hotels more power to hike prices, potentially making the islands less accessible to middle-class travellers.
As of February 2026, the Spanish government shows no signs of slowing down. With a single national register now in place and European regulations tightening, the era of the "unregulated" Spanish holiday let appears to be coming to a definitive end.