real estate Mallorca

Real estate in Mallorca can offer a wide variety of opportunities. There are a variety of property types and prices. There are also a number of taxes to consider when buying property. Read on to learn more about the different properties on the market and the different prices and taxes that apply. You can also contact local property experts to get more information.

Locations for real estate in Mallorca

If you want to invest in Mallorca real estate, you will find that you have a wide range of options. The largest city on the island is Palma, where luxury apartments are a common sight. While the city is expensive, smaller towns away from the coast have cheaper prices. Many properties on Mallorca have room for improvement, which will add to the capital return of the property.

The most desirable part of the Mallorca real estate market is the premium sector. The island is renowned for its abundance of high-end luxury properties, and there are some famous names that have bought Mallorca properties. Tom Cruise, Kate Moss, and Pierce Brosnan have all purchased luxury villas in Mallorca.

The most popular real estate location on Mallorca is Palma, which is accessible from the airport and offers a wide range of prices and property types. Old Town, the Calatrava district, and the bohemian Santa Catalina district are all prime locations to invest in Mallorca real estate. Luxury properties are also available in Mallorca, ranging from traditional Spanish farmhouses to contemporary luxury villas.

The southern part of Mallorca has some of the most expensive properties, but it also has some of the most prestigious residential areas. The island’s southwest coast has excellent infrastructure, a vibrant nightlife, and sandy beaches. You can also find quaint villages that are a great place to spend your days on the beach.

The demand for Mallorca real estate is strong, and prices are expected to continue to rise. While the shortage of new properties is shaping the future price of properties, there is no reason to worry about missing out on a good investment opportunity. In fact, many analysts believe that Mallorca property prices will continue to increase, which will help you enjoy a comfortable retirement.

Types of properties available

When buying property in Mallorca, it’s important to consider the different types available. Houses are often the most popular type of property. They are ideal for families with children and offer plenty of room for living comfortably. Alternatively, you can upgrade your house to a villa status by adding a pool or a garden.

Mallorca has some beautiful rural areas, which are great for country houses. There are many country homes available for sale in Mallorca, many of which have holiday rental licenses and can be used as holiday homes. Some of these country homes have stunning views of the sea and have many acres of land. They are also a great investment option.

As the housing market is recovering from the crisis, buyer choice trends are changing. While penthouses, new-build properties, and mid-rise apartments were popular in previous years, buyer preference for the island’s secondary market is increasing. In addition, buyers are choosing to buy more palatial detached homes and plots of land. However, these properties are more expensive.

If you want a house that’s close to the beach, you can opt for a townhouse. There are also country houses further inland. The type of home you choose depends on your personal preferences and what you will use it for. Country houses are a good option if you have a limited budget, while apartments are a good option if you are looking for a place to live.

There are also luxury villas for sale in Mallorca. They are ideal for international buyers and offer breathtaking sea views. A typical Mallorca luxury villa is worth around 1.9 million euros.


Prices of real estate Mallorca continue to rise, with villas and fincas still representing the highest price brackets. Across the island, the average home costs 1.8 million euros. In Santanyi, Portopetro, Portocolom, and Es Carritxo, prices are in the mid-1.5 million-euro range. In the south, prices are slightly lower with houses available for 1.4 million euros in Porreres and Campos.

In March 2022, the secondary property market picked up steam. Major marketing campaigns by real estate agencies began to attract property owners to the island. The competition between buyers and sellers increased and the first to pay emerged as the buyer of the day. The availability of online transactions and remote viewings also contributed to the increased number of enquiries. This helped to keep prices stable. In the coming year, prices will likely increase again. However, it will depend on how quickly the economy recovers post-covid.

Despite the recession, Mallorca’s housing market is still growing. In March 2021, the average price per square metre was 3,113 EUR/m2. That represents an increase of 7.1% compared to the previous year. By comparison, the average price per square meter in mainland Spain was only 1.2% higher. This demonstrates how the market is continuing to grow even amidst a lockdown.

Prices of apartments on Mallorca have generally remained stable over the past year, but have increased in prime areas. Villas and apartments in the south of the island will cost between EUR400,000 and EUR550,000. There are also some reasonably priced properties available for less than 400,000 euros in the town of Llucmajor.


In addition to the purchase price, there are various additional costs such as taxes, notary fees, lawyer fees and various other charges. These costs can be one-time or recurring. Taxes on real estate Mallorca vary depending on the property type and location. A 10% land tax is required for residential properties with a garage.

Non-residents must pay income tax annually by December 31st. Non-residents can also liquidate their property, as long as they do not live in the property. Non-residents can also obtain mortgages and can borrow up to 60% of the price. The rates of interest and mortgage fees are subject to the current rates of the bank.

Taxes on real estate Mallorca vary depending on the type of property you are buying. For example, when purchasing a new apartment or house in Mallorca, you will have to pay VAT of 10%. This will be added to any advance payments you make, and you must also pay Stamp Duty, which is about 1.5% of the taxable base. In some cases, you may be able to reduce the Stamp Duty.

Aside from taxes, there are other fees and costs involved when buying real estate in Mallorca. Those costs usually account for around 10% to 13% of the total price. These include fees for a lawyer and land registry. You may also need a notary to handle paperwork with banks and the land registry.

The municipality also collects taxes on real estate in Mallorca. The IBI Mallorca (Impuesto sobre Bienes Inmuebles) tax includes urban and rural properties and is regulated by the Municipal Tax Law. The tax is calculated on the cadastral value of the property. This value reflects the value of land and the type of development it has undergone. In addition, cadastral values are updated every 10 years by reassessments. In addition, alterations or additions can alter the value of a property, which will affect the property tax.

Down payment

One way to finance the purchase of Mallorca real estate is through a mortgage. The interest rate on these loans is historically low and there are many attractive options for international buyers. However, you should be aware that the mortgage process may take several weeks longer than expected. In addition, the maximum mortgage that can be obtained by a non-Spanish resident is 70 percent of the total value of the property. Additionally, you should account for 12% of the purchase price for taxes and fees.

The first step in purchasing a property in Mallorca is determining your budget. A deposit of three to six thousand Euros is usually enough to secure the property. However, it is a good idea to seek legal advice before making a final decision. It is not mandatory to hire a lawyer, but it is recommended for peace of mind and security. A lawyer can advise you on the proper process and make sure that all of your paperwork is in order. A lawyer can also help you get your NIE number and advise you on taxes and inheritance.

Another important factor to consider when buying real estate in Mallorca is the interest rate. The lower the interest rate, the better. However, fixed rates are often better than variable ones. A good mortgage loan will offer a sustainable return. Make sure to research all the conditions and terms before signing. For example, Spanish residents may be able to finance 80% of the total cost of a property. But if you’re a non-Spanish national, your chances of being approved for financing are slimmer.

The other factor to consider is the tax structure of the island. Mallorca is an autonomous region of Spain, which means that its taxation system differs from the rest of the country. Nevertheless, it’s important to note that there are a few things you can do to make the process of purchasing Mallorca real estate more affordable. In the Balearic Islands, for instance, the government has passed a law that allows municipalities to increase the property tax rate on vacant real estate by 50%. This is meant to encourage owners to rent out unused living space. Additionally, the island also has a wealth and income tax system.