All three men had been charged with two crimes of gross negligence manslaughter over the deaths of the British couple as well as other offences relating to injuries suffered by two other victims of the October 21, 2011 flash floods.
The victims include six Spanish nationals, a Dutch tourist, a British couple and one unidentified victim, the BBC reported.
Their relatives said in a statement released through the Foreign and Commonwealth Office (FCO) that the couple, who retired 14 years ago, would be "missed by everyone who knew them".
The regional government called an emergency meeting and authorities said rescue workers and military units were heading to the area to help in the aftermath.More news: Biz leaders fight Trump on Fed critique
The driver is among at least eight people missing.
"The most important thing right now is to find the missing people and respond to the concerns of their families and to everyone who lives near the affected areas", he told reporters. A tenth victim was found later, emergency services said on Twitter. "They have found the bodies of the two British people in the auto but we have not had any news of the driver...."
One witness told a local newspaper he had to swim out of his vehicle through a window to safety. "We had to swim to try to survive". In all, more than 500 people helped with rescue and cleaning up operations, authorities said. Rivers burst their banks and swamped roads and people's homes - forcing some to take shelter in a sports centre in the nearby town of Manacor.
The agency's data showed that some parts of the island received up to 23 centimeters (nine inches) of rainfall in around four hours on Tuesday evening, more than one third of the average amount that rains annually.
A previous version of this story corrected the spelling of the town to Sant Llorenc, not Sant Lorrenc.