Mallorca, the largest of the Balearic Islands, has various spots that appeal to a wide range of buyers: charming rural towns for close-knit expat communities; bustling beach resorts with vibrant nightlife; and more exclusive locations where you’ll find luxury villas and world-class golf courses.
This makes it an excellent choice for prospective property buyers, whether you’re looking for an investment, a holiday home, or a place to retire.
That said, there are crucial things you need to consider. Tourism demand may be strong, but that means prices tend to be high. And it’s vital you pick a location on the island that matches your lifestyle.
In this article we cover some of the key factors to think about when buying property in Mallorca, including costs, the best locations, and legal considerations.
For a general overview of purchasing a Spanish property, visit our page on buying property in Spain.
Can foreigners buy property in Mallorca?
Yes, foreigners can buy property in Mallorca – there are currently no restrictions on foreign buyers. This makes Mallorca one of the most accessible regions for foreigners buying property in Spain, particularly those seeking second homes or investment opportunities.
The property market is well established, meaning the process is often straightforward and there are plenty of English-speaking real estate professionals who can cater to customers from overseas.
Is buying real estate in Mallorca a good investment?
Property in Mallorca can be an excellent investment. The island’s popularity among holidaymakers and high-net-worth individuals means that property price growth is strong and rental demand is high.
That said, as with all investments, it’s important you understand the nuances. Make sure you research the Mallorca property market, including price growth forecasts and regional trends, to make sure you’re buying in the right place at the right time for the right price. You also need to budget effectively, taking seasonal demand into account when forecasting rental returns and ensuring you have the funds to cover ongoing costs.
Where is the best place to buy property in Mallorca?
The best place to buy property in Mallorca will depend on your budget, lifestyle and planned use for the property. Here are some of the top spots to consider, along with who they’re best suited for.
Palma de Mallorca (including Old Town, Santa Catalina and Son Vida)
Palma is the urban and cultural heart of the island, offering a mix of history, culture, and modern Mediterranean living. The Old Town boasts cobbled streets and beautifully restored palacios, while Santa Catalina is alive with an eclectic mix of cafés, eateries, and boutique shops. Son Vida, perched above the city, offers some of the island’s most exclusive homes.
The property market in Palma is ideal for holiday-home buyers and retirees who want vibrant urban living, and for investors targeting both long- and short-term rentals. Expect to pay around €5,000 per square metre in most central areas, with prime spots – particularly Son Vida – commanding far more.
Southwest Mallorca (Port Andratx, Bendinat, Portals Nous and Santa Ponsa)
The glamorous southwest coastline is known for its luxury lifestyle. Port Andratx offers spectacular sea-view villas and a world-class marina, while Bendinat and Portals Nous mix elegant homes with golf courses and designer boutiques. Santa Ponsa blends exclusivity with family-friendly amenities.
This area is a magnet for high-net-worth buyers seeking prestige and privacy, or investors focused on the top end of the market. Prices range from around €6,500 to over €9,000 per square metre in the most coveted spots.
The north coast (Puerto Pollensa and Alcúdia)
For a gentler pace, the north’s Puerto Pollensa and Alcúdia offer long sandy beaches, safe swimming, and a relaxed, family-friendly vibe. Popular with cyclists year-round, the area also has strong rental appeal in summer.
Both retirees and families love the calm atmosphere, while investors value the steady tourism income. Alcúdia prices average about €4,500 per square metre, with Puerto Pollensa not far behind.
Countryside and mountain villages (such as Deià, Sóller, Santa Maria, Alaró and Campanet)
Away from the coast, the Tramuntana mountains and Mallorca’s rolling countryside offer rustic charm, natural beauty, and a slower pace of life. From stone-built houses in Deià to olive-grove estates in Alaró, the island’s rural locations still hold a variety of property options.
Perfect for retirees, lifestyle buyers, or remote workers seeking a creative retreat, these areas offer good value compared to the coast, but prices are climbing fast as demand grows.
Inland towns and emerging villages (such as Llucmajor, Manacor, Binissalem, Felanitx)
For more space and better value, Mallorca’s inland towns are certainly worth considering. Llucmajor has a charming historic centre, Manacor is a lively commercial hub, Binissalem is famous for wine, and Felanitx offers authentic village life. Even in the most landlocked locations, you’re still rarely more than a 20-minute drive from the coast.
These areas suit budget-conscious buyers, locals, and those eyeing renovation projects with long-term growth potential. Prices tend to average around €4,400 for inland locations.
Costs and taxes to budget for when buying property in Mallorca
Of course the key costs of buying property in Mallorca are the property price and deposit, however there are many additional fees and expenses you’ll need to cover.
As a rule of thumb, you’ll need to budget an extra 10-15% of the purchase price to cover additional costs – including notary, registry and legal fees, as well as Spanish property taxes – and it’s best to have an emergency fund of around 10% in case there are any unexpected expenses.
Purchase-related fees and taxes
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VAT (IVA) for new builds – 10% of the purchase price, plus around 1.2% stamp duty (AJD), for a total of up to 11.2%.
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Property transfer tax (ITP) for resales – between 8% and 11% depending on the property price.
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Notary fees – around 0.5% of the purchase price (approx. €300-€1,200).
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Land registry fees – typically €400-€600 (about 0.4% of the property value).
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Legal fees – usually around 1% of the purchase price, plus VAT.
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Travel and accommodation expenses – for a one-week property-viewing trip, budget €2,000-€3,400 for two people, including flights, villa rental, car hire, food, and incidental costs.
Additional and ongoing costs (all owners)
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IBI (annual property tax) – typically 0.4%-1.1% of the cadastral value.
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Refuse collection (basura) – fixed annual municipal fee (varies by town).
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Community (comunidad) fees – typically €50-€250 per month, higher if there’s a pool, lift, concierge, gardens, etc.
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Utilities – electricity, water and gas roughly €100-€200 per month for an 85-square-metre home; internet €30-€50/month.
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Home insurance – around €150-€250 per year for a typical apartment (more for villas and larger homes).
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Maintenance and repairs – annual allowance for upkeep (e.g. pool/garden care, appliances, minor works).
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Wealth tax (patrimonio) – applies only to high-net-worth owners; Balearics exemption is currently €3 million.
Costs for owners of rental properties
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Non-resident deemed income tax (IRNR, if not renting) – base 1.1% (if cadastral value recently revised) or 2% of cadastral value, taxed at 19% (EU/EEA) or 24% (non-EU/EEA).
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Non-resident tax on rental income (IRNR, if renting) – 19% (EU/EEA, with deductions) or 24% (non-EU/EEA, no deductions).
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Adviser/filing costs – fees for using a gestor/tax adviser to handle tax returns and related filings vary but tend to average around €100 to €200.
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Key-holding/property management – simple key-holding from €75+/month; long-term rental management typically 5%-10% of monthly rent (plus VAT).
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Tourist rental licence (ETV) – required for short-term holiday lets. Costs vary depending on property type, but as a guide expect around €875 per guest space for apartments, €3,500 per guest space for villas, and about €290 per guest space if it’s your main home.
For a deeper breakdown, check out our full guide on the costs of buying property in Spain.
Sending money to and from Mallorca
If you’re buying property in Mallorca from anywhere outside the Eurozone then you’ll need to transfer money internationally as part of the process. This could be a large lump sum for a deposit (or the full purchase price if you’re buying with cash), or regular payments to repatriate rental income, transfer pension payments, or pay bills and utilities.
When moving money, it’s important to use a trusted, established provider. Check independent reviews and make sure the company is authorised and regulated within the EU, so your funds are protected. Beyond security, there are practical considerations:
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Exchange rates: Even small differences can make a big impact on large transfers. Look for providers that offer competitive rates and transparency around fees.
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Timing: Currency markets fluctuate, so it’s best to plan ahead and preferably seek expert guidance from a specialist transfer company rather than relying on the spot rate for the day.
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Regular payments: If you’re sending pensions, rental income or covering ongoing bills, many providers let you automate transfers – often with the option to lock in a fixed rate for certainty.
Specialist currency providers such as Currencies Direct focus specifically on helping property buyers and owners move money safely and cost-effectively, offering services that go beyond what most banks provide.
With dedicated account management, you also benefit from expert guidance and personalised support on everything from timing larger transfers to navigating exchange rate volatility.
How to pay for your property in Mallorca
When it comes to paying for property in Mallorca, buyers usually fall into two groups: those purchasing outright with cash and those financing the purchase with a mortgage. Each route has its own considerations, and understanding the pros and cons will help you choose the right option.
Buying a Mallorca property in cash
Many overseas buyers choose to buy in cash, particularly retirees or those relocating from higher-value property markets elsewhere in Europe. The main advantages are:
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Faster transactions, since you’re not dependent on bank approval.
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Greater negotiating power with sellers, who may prefer the certainty of a cash deal.
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Lower ongoing costs, as you won’t be making monthly repayments.
Cash buyers should still plan carefully for international money transfers. Timing your transfer can make a big difference to the final amount, and it’s important to use a secure, regulated specialist provider rather than transferring large sums through a standard bank.
Find out more about buying a property in Spain with cash.
Financing with a mortgage in Mallorca
Spanish banks are generally open to lending to non-resident buyers, though maximum loan amounts and conditions vary:
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Mortgage availability for foreigners: Most lenders will offer up to 60-70% of the property’s value (compared to 80% for residents).
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Documentation required: Proof of income, recent tax returns, bank statements, and details of existing debts. Self-employed buyers may need to provide additional paperwork.
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Mortgage terms: Typically 15-25 years, with fixed, variable (Euribor-linked), or mixed-rate options.
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Set-up costs: Around 1-2% of the loan amount, covering valuation, arrangement, and notary fees.
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Currency considerations: If your income is in a currency other than euros, plan for exchange rate fluctuations, as repayments are always made in euros.
Working with a specialist mortgage broker can be worthwhile, particularly for international buyers. They can compare rates across Spanish banks, explain the fine print, and help you secure the most suitable deal.
Learn more about how to get a mortgage in Spain.
Legal considerations for buying property in Mallorca
Buying property in Mallorca is generally straightforward for foreign buyers, but it’s essential to follow the correct legal process to protect your investment. Spain’s property laws apply across the Balearic Islands, with some regional specifics in Mallorca, so professional advice is strongly recommended.
Here’s a step-by-step legal checklist for buying property in Mallorca to make sure your purchase is safe and compliant:
1. Engage a qualified local lawyer early
Hiring an independent, bilingual abogado (lawyer) who represents your interests (not the seller’s or the estate agent’s) is crucial. They will carry out due diligence checks, review contracts, verify ownership, and ensure there are no debts, legal disputes, or charges against the property.
2. Verify property ownership and land registry records
Before committing to a purchase, your lawyer should obtain an official Nota Simple from the Registro de la Propiedad (Land Registry) to confirm the legal owner, boundaries, size, and whether there are any mortgages, liens, or embargoes on the property.
3. Check planning permissions and building compliance
Particularly for rural properties or older homes, it’s vital to ensure all buildings and extensions are fully legalised under Spanish and Balearic planning regulations. Unauthorised works may result in fines or demolition orders. Your lawyer can request a Certificado de No Infracción Urbanística from the local council.
4. Understand the purchase contract process
The buying process in Spain typically involves:
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Reservation agreement – a small deposit to take the property off the market.
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Private purchase contract (contrato de arras) – usually accompanied by a 10% deposit, setting out terms and conditions, completion date, and penalties for withdrawal.
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Completion at the notary – signing the escritura de compraventa (deed of sale) before a Spanish notary, followed by registration in the Land Registry.
5. Obtain an NIE number
All buyers, including non-residents, must have a Spanish tax identification number (Número de Identificación de Extranjero or NIE) before purchasing. This is required for all official transactions, including registering the deed and paying property-related taxes.
6. Be aware of zoning and rental regulations
Mallorca has strict zoning rules, especially for tourist rentals. If you plan to rent the property short-term, you’ll need to check whether the property is in an eligible zone and whether a licencia de alquiler turístico (ETV tourist licence) is available. Rules change periodically, and in some areas, new licences are suspended.
7. Consider inheritance and tax implications
Spanish inheritance laws follow a system of forced heirship, which may differ from your home country’s laws. Tax rates and exemptions vary for residents and non-residents, so seek specialist advice on structuring ownership, especially if you’re buying jointly or through a company.
8. Use escrow for deposits
Deposits should be held in a secure client account, or managed through a trusted payment platform such as Redpin, rather than being paid directly to the seller. This helps protect buyers from the risk of losing funds if the sale falls through before completion.
Next steps
If you’re ready to move forward with planning your Mallorca property purchase, the next steps are to draw up a budget – considering all the costs covered in this article – and narrow down your search for the perfect location.
It’s also a good idea to open a currency account early on, as this gives you plenty of time to plan your transfers and give yourself the best chance of getting a strong exchange rate. It’s completely free to create a Currencies Direct account, and there’s no obligation to make a transfer once the account is set up. Get in touch with us to find out more.
FAQs about buying property in Mallorca
Can foreigners get a mortgage in Mallorca?
Yes. Many Spanish banks and international lenders offer mortgages to non-resident buyers, usually up to 60-70% of the property’s value. You’ll need to provide financial documentation and meet affordability criteria. Read our guide to getting a Spanish mortgage for full details.
How long does it take to buy a property in Mallorca?
The process usually takes 6-12 weeks from making an offer to completing at the notary. This includes due diligence, arranging financing, and preparing contracts.
Do I need a Spanish bank account to buy property in Mallorca?
You don’t legally need a Spanish bank account to buy property in Mallorca. Payments such as deposits, taxes, and bills can be managed through a multi-currency account, while purchase funds can be handled through a property payment platform like Redpin. That said, if you’re planning to live in Mallorca full-time, opening a local account can still be useful for day-to-day banking.
What taxes do I need to pay when buying property in Mallorca?
You’ll pay VAT and stamp duty on new builds, or property transfer tax (ITP) on resales, along with notary and registry fees. Ongoing costs include IBI (annual property tax), community fees, and income tax on rental income.
Is buying property in Mallorca a good investment in 2025?
Mallorca’s property market remains strong, thanks to its popularity with tourists and high-net-worth individuals. While prices are high, demand is steady, and well-located properties often achieve both capital growth and strong rental yields. That said, as with any investment, the market can fluctuate, and it’s important to do your research and seek independent advice before committing.
