Guide: Renting Out Your Property in Ibiza

Renting out a property in Ibiza can be financially rewarding – if you understand the rules and tax implications. Whether you’re renting short-term to tourists or long-term to residents, each type has its own requirements. This guide explains what owners need to know to rent legally and with peace of mind.

What Types of Rental Are Allowed?

In Ibiza, you can rent out your property in two main ways:

1. Holiday Rental (Short-Term)

• Rental to tourists, typically per week or less

• Requires an official rental license (ETV)

• Not all properties are eligible

Ibiza has strict rules for tourist rentals. Properties in communities where statutes prohibit holiday lets, or those lacking proper infrastructure, are not eligible for a license.

2. Long-Term Rental (Over 1 Month)

• Rental to residents or remote workers for extended periods

• No rental license required

• Lower yields than holiday rentals, but more stable

What Rental Yield Can You Expect?

Returns depend on several factors:

• Property location (e.g. south/west coast vs inland)

• Property type (apartment, finca, modern villa)

• Whether a rental license is available

• Seasonal demand

• Owner occupancy vs full-time rental

Holiday rentals offer the highest gross returns but come with more admin, regulations, and costs. Long-term rentals are steadier, easier, and less regulated — but generally yield less profit.

What Are the Rules for Holiday Rentals?

If you want to rent short-term to tourists, you must ensure:

• You hold a valid rental license (ETV number)

• The property is registered in the tourism registry

• It meets energy certificate and technical inspection standards

• Local and regional regulations are followed

Note: Some municipalities have paused issuing new licenses or introduced quotas. Always check current regulations.

What About Taxes?

If you are not a Spanish tax resident:

• You pay tax on rental income via the IRNR system

• EU/EEA residents can deduct expenses (e.g. maintenance, insurance)

• Non-EU owners cannot deduct — tax is calculated on gross income

• You file annually using Model 210

See also our guide: Taxes for Foreign Property Owners (IRNR)

Smart Tips for Renting in Ibiza

• Hire a local property manager to oversee the home in your absence

• Invest in professional photos and videos for listings

• Ensure your insurance covers rental use

• Use a booking platform aligned with your ideal guest profile

• If possible, buy a property that already has a valid rental license — this avoids delays and complications

Ibiza Now Tip

Looking to buy a rental property? Already own and considering renting it out?
Ibiza Now helps you evaluate the property’s potential return, legal requirements, and the steps needed to rent successfully.

We can connect you with reliable tax advisors, accountants, and property managers on the island.

What Can You Do Now?

👉 Ask us for current listings with rental license
👉 Get a realistic rental yield forecast for a property
👉 Read also: Tax Guide for Foreign Owners (IRNR)