Local authorities in the popular Spanish holiday resort have taken the measure to try and tackle overcrowding and noise complaints.
Owners of flats or apartments in Palma will no longer be able to rent their homes to tourists from July.
The Balearic capital's the first Spanish city to introduce the restriction - in an attempt to tackle mass tourism and overcrowed areas.
It's after complaints from residents about rising rents due to short holiday lets on websites and apps.
It gave the Ministry of Tourism huge problems with tenants multiplying by six in the last 3 years.
After carryng out an investigation, local authorities found, between 2015 and 2017, considerably more unlicensed tourist apartments were rented compared to those with correct licensing.
Palma's Mayor, Antoni Noguera, says houses will be exempt from the ban as long as they're in protected areas.