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EU warns Spain over Balearic tourist rental ban as legal battle escalates
Brussels says blanket prohibition on new licences is disproportionate, but regional government refuses to back down
Spain could face significant financial penalties after the European Commission declared the Balearic Islands’ total ban on new tourist rental licences for apartments illegal.The dispute centres on a strict policy introduced by the Balearic government to curb housing pressure and tourist overcrowding. However, Brussels has now ruled that a blanket ban goes too far, describing it as “disproportionate” and incompatible with EU law on free competition and services.
According to the Commission, such sweeping restrictions would only be justified in very limited areas. For most of the islands, including Mallorca, Menorca and Ibiza, it says measures should be based on clear data showing real pressure on the housing market, rather than a complete prohibition.
Despite this, regional authorities are standing firm. Tourism minister Jaume Bauzá has made it clear the policy is a “non-negotiable political red line”, insisting the impact of tourist apartments is “systemic” across the islands.
That refusal to amend the law could now trigger formal infringement proceedings from Brussels, with any resulting fines falling on Spain as the member state ultimately responsible.
The clash comes amid growing scrutiny of Spain’s holiday rental market, with authorities already taking action against illegal listings on platforms such as Airbnb. In recent months, regulators have stepped up enforcement, targeting thousands of properties advertised without the correct licences.
In one of the most significant measures, Spain ordered Airbnb to block more than 65,000 unlicensed short-term lets from its platform, highlighting the scale of the issue and the pressure on housing in key tourist areas.
Consumer groups have also been pushing for tougher controls. Spain’s consumer rights watchdog has previously moved to take legal action against Airbnb for failing to remove unlicensed holiday lets, reflecting wider concern about the impact on residents.
Against this backdrop, the Balearic Islands opted for one of the most restrictive approaches seen in Spain. What began as a local attempt to protect housing supply has now evolved into a broader legal confrontation with the EU.
The European Commission has already issued a binding demand for the rules to be changed. With no sign of compromise and positions hardening on both sides, the dispute now looks set to be decided in the European courts.
For now, the outcome remains uncertain, but the stakes are high. If the current stance continues, Spain could find itself facing a costly bill for a policy it does not directly control.
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