Property for Sale in Mallorca: Advice for Foreigners

Mallorca is one of the most beautiful islands in Spain; buying a house means high-quality living standards and also a good investment. The Spanish Golden Visa Program – that grants long-term residence to property buyers – makes Mallorca an even more attractive option. 

This guide will help you:

• Understand the Real Estate Market in Mallorca
• Navigate the Buying Process
• Learn About Property Taxes on the Island

Why Invest in Property in Mallorca?

See why Mallorca is so popular with expats:

Six Compelling Reasons to Invest in Mallorcan Real Estate

Golden Visa Opportunity

Become a Spanish citizen by buying property over €500,000.

Unrivalled Climate and Landscape

Live in the sun of the Mediterranean and within beautiful landscapes. Mallorca is sunny year-round with fairly tame winters.

Good Quality of Life

Compared to countries such as Germany, the UK, or the US, Mallorca has:

• World-Class Amenities
• Fresh Local Food
• A Relaxed Lifestyle
• Lower Cost of Living

Lucrative Letting Potential

Mallorca is a top tourist hotspot, drawing millions annually. Properties in prime locations can provide consistent rental income, especially during summer.

Low-Cost Houses

It is considerably less expensive compared to other Mediterranean destinations, such as the French Riviera, making it a solid investment.

Great Connectivity

Mallorca has an international airport that provides flights to major cities around the world. This makes it ideal for people who travel often and for expats.

Can Foreigners Buy a Property in Mallorca?

Foreigners are not restricted from buying property in Mallorca. Spanish laws actively welcome foreign investment through Golden Visa, which grants residence upon fulfilment of a minimum investment.

Every kind of property is available on this island, from seafront apartments to luxurious villas atop hills. While buying property as a foreigner in Mallorca is pretty straightforward, bear in mind there are still some quirks. This includes arranging local financing or understanding the legal side when purchasing a property.

Mallorca is particularly popular among British and German people, mainly because it combines cultural experiences with good food and modern amenities. Welcoming locals and already established expat communities make relocating or investing in the island even easier.

Searching for a House in Mallorca

The process of finding a property in Mallorca is quite smooth, with many experienced estate agents who have developed a particular speciality in the market of this island. Some popular platforms to begin your search include:

• Fotocasa

• Kyero

• Idealista

Many British and foreign agents also advertise in Mallorca, but viewing the property in person is always advisable to see if it lives up to your dreams. Real estate in Mallorca spans modern apartments in the historic centre of Palma to large countryside estates in the mountains of the Truamuntana.

Upscore’s Benefits

Upscore makes it easier for you to buy a property in Mallorca. Our Finance Passport gives you the confidence to take up a mortgage through proper tools and expert guidance at every step.

Multiple Lenders: Compare offers from various local lenders for the best deal available.

Remote Application: Apply for your mortgage online from anywhere.

Personalised Service: Work with a dedicated agent who will guide and support you through the entire mortgage process.

Upscore is totally free to use. We take commission from the lenders if you close a deal, at absolutely no charge to you.

FAQs

Is Buying a House in Mallorca Expensive?

Prices depend on location and the type of property. Luxury villas and beachfront houses in popular tourist towns like Palma or Port de Pollença will be higher, but the more modestly priced inland ones provide a reasonable alternative.

Is it Possible to Rent Foreign-Owned Properties in Mallorca?

Yes, all foreigners can rent out their homes, but to do so legally with short-term holiday lets, you’ll need to obtain a tourist rental licence (otherwise known as ETV). Many authorities limit the number available; this depends on location and type of property. Long-term lets do not require a licence. 

Should I Open a Spanish Bank Account to Buy Property in Mallorca?

While it isn’t legally required, having a Spanish bank account simplified many aspects of buying and owning property. It’s particularly useful for paying notary fees, transfer taxes, and setting up utilities or mortgages.

How Long Does Closing a Property Purchase in Mallorca Take?

The process usually takes 6-8 weeks but can vary depending on the following factors:

• Property Type
• Financing
• Legal Formalities

Initial steps include signing a reservation agreement and hiring a lawyer for due diligence. Financing can add time, particularly for foreign buyers. However, the timeline can be shorter if all documentation is in place and payments are prompt. 

What are The Taxes Associated with Purchasing Property in Mallorca?

When buying a property in Mallorca, you’ll pay:

• Transfer Tax (which amounts to 8 to 11% of the property’s price)
• Notary Fees 
• Land Registry Fees. 

You’ll also pay 10% VAT instead of transfer tax when you buy a new property. Annual ownership costs include property tax and garbage collection fees; on resale, capital gain tax may be payable. A tax advisor will, in this regard, bring clarity to these costs and help in projecting accordingly.