The dilemma between traditional rental (LAU) and Holiday rental (VUT) It gets more complicated with the new regulations. While the LAU (Urban Leases Law) It regulates long-term contracts for use as a primary residence; tourist rentals are governed by regional regulations and requires specific licenses.
Choosing one model or the other directly affects the profitability, taxation, and legal obligations of the owner.
For example, an apartment in Palma centre It can have a more stable return with traditional renting, while a home in Cala Millor or Pollença You can multiply your income through VUT, provided you have a license.
At Mallorca Owners we help our clients to define the optimal exploitation model depending on the location, seasonal demand and tenant profile.