High Season vs Off-Season in Mallorca: how to rent, ROI & maximise your property year-round

The island of Mallorca presents a dual-market: a strong summer holiday destination and an increasingly viable off-season lifestyle/long-stay market.

During the high season (roughly April to October), affluent international tourists and second-home users dominate demand.
In the off-season (October to April), the growth of remote working, extended stays and lifestyle relocations creates rental opportunities beyond pure holiday lets.
A hybrid model (short-term in peak months + mid-/long-term in off months) can reduce vacancy risk and improve asset utilisation.

Key data & market indicators

In Palma de Mallorca, short-term rentals via platforms show an average occupancy rate of ~79 % and an average daily rate (ADR) of ~€143 over a 12-month span (Sept 2024–Aug 2025). Typical annual revenue: ~€37,577.
For the island broadly, one study gives a typical short-term rental listing: ~277 nights/year, occupancy ~76 %, ADR ~€186, annual income ~€48 000.
For long-term rental yields: average asking rent in Mallorca (Balearics) has risen from ~€10.4 /m²/month in May 2016 to ~€20.2 /m²/month in June 2025 – an increase of ~94% over 10 years. Meanwhile sales prices rose ~150% (from ~€2 014/m² to ~€4 996/m²) over the same period. Gross yields for long-term rental are around ~4.85 % in 2025.
Broad Spain comparison: gross rental yields in Q1 2025 averaged ~7.3 % nationwide (though this is for Spain overall, not Mallorca-specific).
Regulation and licensing matters: Short-term tourist rental licences (ETV) and local tourism law apply in Mallorca; compliance is non-negotiable for holiday lets.

Implications & strategy

1. Licensing & Legal Compliance

If you intend short-term holiday use (nightly/weekly), you must ensure you have the correct licence (ETV or other as required) and comply with local tourism regulations. Non-compliance risks fines or de-licensing.

2. High Season Focus (April–October)

This is where ADRs and occupancy peak. Example: villas in premium locations can command high nightly rates when marketed to HNWIs.
In peak months expect strong competition for supply but also the strongest returns.

3. Off-Season (October–April) Opportunities

Rather than letting the property sit idle, consider mid-term leases (e.g., remote workers, corporate stays, international school staff) for e.g. 3–6 months. Lower turnover, lower marketing cost, more stable yields.
Example: centrally located apartment in Palma with work-friendly amenities could be leased for a fixed period, giving reliable income.

4. Hybrid Model

Combine high-season short-term letting + off-season mid-term leasing to smooth income and reduce risk of long vacancies.
Example: Use short-term July–Sept; then Oct–March convert to a 6-month lease; April switch back to holiday mode

5. Furnishing & property management

Invest in durable and appealing furnishings (premium but practical) to appeal both to luxury holiday guests and longer-stay tenants.
Use a specialist property-management company: they handle guest check-in/out, cleaning, maintenance, inquiries 24/7—key for preserving brand/reputation and enabling higher occupancy.

6. Tax & ROI considerations

Rental income is taxable under Spanish law; but you can deduct legitimate expenses (management fees, maintenance, utilities) to enhance net return.
Foreign investors should review Spain’s double taxation treaties to avoid being taxed twice.

7. Capital appreciation & yield

Property prices in Mallorca have grown strongly: from ~€2 014/m² in June 2016 to ~€4 996/m² in June 2025 (CAGR ~9.6 %).
But long-term rental yields are compressed (~4.85 % gross) compared with holiday-let yields. That emphasises the importance of the high-season / short-term element for higher returns.

8. Risks & Market Conditions

Licensing and regulation risk: new rules (e.g., temporary tourist licences from June 2025) may restrict supply or increase costs.
Off-season demand is growing, but nightly rates will typically be lower than peak summer.
Supply pressures in short-term market may reduce margins: occupancy and ADR could adjust.

Summary

Mallorca’s market no longer relies only on the summer surge. There is credible opportunity to rent year-round by combining:

Strong high-season returns from short-term holiday rental (requires licence + premium property + good management)
A stable off-season income via mid-/long-term leases to remote workers, itinerant professionals, etc.
Proper licensing, furnishings, management and tax planning are essential. With the right strategy the asset can deliver both strong cash flow and capital appreciation.