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What changes in 2025 in Formentera: regulation of tourist rentals and vacation rentals

What changes in 2025 in Formentera: regulation of tourist rentals and vacation rentals

2025 marks a turning point in the regulation of tourism and vacation rentals in the Balearic Islands—including Formentera. The new regulations aim to organize the tourism offering, control the proliferation of vacation rentals, curb illegal rentals, and protect residential use. Below, I’ll explain what you need to know if you’re a property owner, an investor, or if you’re thinking about renting or buying on the island.

📝 Main regulatory changes in 2025
• New Decree-Law 4/2025 against illegal offerings and for tourism quality

In April 2025, the Balearic government approved this decree, which amends the previous tourism regulations.

Its objective: to contain the growth of new tourist accommodations, combat illegal offerings, and ensure that tourism activities meet quality, sustainability, and habitability requirements.

• Prohibition of new tourist accommodation in multi-family housing

It is forbidden to create new tourist accommodation in apartment buildings — that is, tourist apartments in residential blocks can no longer obtain new licenses.

To renew existing licenses for this type of housing, quality requirements have been tightened.

• Temporary pool of tourist accommodation places — no net growth

Although the moratorium is partially lifted, the regulation introduces a “temporary pool” mechanism: the exchange of slots will be permitted (activating some in exchange for deactivating others), but no overall increase in slots will be allowed.

The objective is to maintain a balance in the total number of places, while defining a tourism capacity plan for each island.

🚨 Greater oversight, harsher penalties, and platform regulation

The decree provides for tougher penalties: illegal vacation rentals can incur fines of up to €500,000.

Tourist rental platforms (online portals) will be required to demand the tourist registration number from owners in order to list accommodations—the platforms will share responsibility if properties are marketed without a license.

On the island, the Formentera Island Council has approved a resolution (June 2025) regulating how tourist accommodation places may be obtained during this transitional period, setting out requirements, conditions, and procedures.
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In addition, the agreement between the Consell and rental platforms (such as Airbnb) stipulates that listings that do not comply with the regulations will be removed.

📊 Formentera situation: recent data on vacation rentals

According to a 2025 report, 47% of tourist accommodation in Formentera comes from vacation rentals. This percentage is the highest in the entire Balearic Islands.

This highlights the island’s heavy reliance on tourist rentals, which partly explains the current regulatory need.

đź§­ What does it mean for owners, investors, and buyers?

âś… Less competition from new tourist apartments: the ban on multifamily housing reduces the possibility of new tourist apartments opening, which could stabilize or reduce saturation.

✅ Greater security for those who comply with regulations: licensed and properly registered accommodations will be more “reliable” and legal—this can be attractive to discerning tourists or serious investors.

⚠️ Risk for those operating without a license: illegal rentals = hefty fines, ad removal, potential loss of income — a real and growing risk.

⚠️ Limitations on new tourist projects: if you were hoping to open a tourist apartment or invest in vacation rentals, the regulations make it more complex; you’ll need to evaluate alternatives (single-family home, change of use, waiting for a slot in the quota, etc.).

🔄 Possible rebalancing of the residential vs. tourist market: with restrictions on vacation rentals, space could open up for residential rental or purchase, which may alter prices, demand, and the buyer profile.

✍️ Conclusion: 2025 as a Year of Change

2025 marks a turning point in the regulation of vacation rentals in Formentera and the Balearic Islands. The measures aim for more sustainable tourism, control of supply, protection of residential use, and ensuring quality and legality.

For owners, investors, or buyers, it represents a new context: one of opportunities—if the regulations are respected—but also of challenges and risks.

Do you need a specialist to figure out what to do with your house or apartment in Formentera? Contact us, we are at your disposal.

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