RESOURCE   "Mallorca News"

Mallorca's shadow market: mafia, millions in fines and the price of paradise

Mallorca, November, 4 2024
Mallorca's housing shortage and illegal vacation rentals: a system in the shadows and an island council in the fight against housing alienation.
TEXT   isla editorial team (nt)

TAGS   Illegal vacation rental Mallorca Island Council measures illegal housing Mafia structures vacation rentals Balearic Islands Mallorca tourism dark side Housing shortage Mallorca

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It sounds like the script for a crime thriller, but on Mallorca it is a brutal reality: international mafia clans and clever networks are making the dream island their prey. Illegal vacation rentals, which have long since caught the eye of the authorities, are pouring money into coffers that are unlikely to see a tax number. The bill? The Mallorcans pay it. While the government tries to put a stop to the networks with fines in the millions and regular raids, the housing situation for islanders remains volatile. Because what some rent out to tourists at top prices is no longer affordable for others.

Palma Mallorca
Palma de Mallorca ©Max Harlynking

Hidden vacation homes: Where the shadow economy flourishes

Once it was the old town apartments and hidden fincas in the mountains that made life on Mallorca what it is - today many of them are part of a secret market. Luxurious, charming and, of course, illegally rented out to tourists. Year after year, demand grows - and year after year, living space for locals becomes scarcer and more expensive. It is a race that the Mallorcans can hardly win: The pull of holidaymakers who want to get a slice of the Mallorcan lifestyle is driving prices ever higher. Behind the Mediterranean facades there is often more than just vacation flair, but a system that is beyond the control of the island's administration.

The authorities are cracking down - but is that enough?

What remains are strict measures, controls and high fines. Those who rent out without a license face fines in the millions, and cities such as Palma and Port d'Andratx are under special scrutiny. But the net is tightly woven and the authorities are fighting a battle that requires a lot of patience. The island council is determined to continue taking action against illegal rentals. But how much progress can be made when the island is surrounded by a shadowy market like a spider's web?

Why all this also affects vacationers

People who visit Mallorca rarely think about the fact that every square meter rented out illegally puts their home further out of reach for many Mallorcans. The shadow economy ensures that property prices continue to climb and permanent rentals decline. The effect? Housing is becoming a rarity and prices are shooting up to dizzying heights. Everyday life is becoming harder for Mallorcans, social life is changing and the face of the island is not staying the same. The price of paradise is high - and increases with every illegally rented apartment.

A paradise that fights back

Mallorca remains an island in a balancing act: it has to cultivate tourism and at the same time fight against its downsides. Housing is becoming scarce and locals are increasingly wondering whether their home will remain what it once was. It is clear to the authorities that the fight against the network of illegal rentals must continue. It remains to be seen whether the paradise of Mallorca can reclaim the space - in any case, the battle for every square meter has only just begun.

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