With over 300 days of sunshine a year, it’s not a surprise that many choose to make the move and buy property in Mallorca. This island is not only a wonderful place in the Mediterranean but also, buying property here has proven to be a good investment. The location, within easy reach from all mayor airports, makes it easy to come and go, for friends and family to visit so this attracts people from all over the world to settle here. We couldn’t agree more!
In this article we will talk about the process and steps of searching for, finding and then getting the keys to your new Mallorca home. Regardless of if it is an apartment, a sea view villa, a townhouse close to schools or a countryside finca you are interested in.
What you need to buy property in Spain
Foreigners can freely buy property in Spain and Mallorca. There is a large international community on the island where some live here full time and others have their property as a second home. But you do need some things before you can go through with the purchase.
The NIE number
The NIE-number (Número de Identidad de Extranjero) will be your identification and tax number in Spain. This is required not only to buy property but also for most significant financial transactions in Spain, like opening a bank account. You can apply for this in several different ways, in person in Spain, via a Spanish consulate in your home country, or through a representative in Mallorca. This representative is often your lawyer who can help you with all details. More about lawyers below.
Best areas to live in Mallorca
When dreaming about living and buying property in Mallorca there are so many things we want this to include. More sunshine ( of course! ), more outdoor living, more freedom, closeness to nature etc. But maybe asking yourself a few questions could help you narrow down your wish list and helping in making the right decision for you.
Location, location, location is true even on this Mediterranean island, and choosing the right area in Mallorca is one of the most important decisions when buying property. Each area has its own style of lifestyle and price level. Some are perfect for year-round living, and other are wonderful for having a second home.
Lifestyle?
What kind of lifestyle are you looking for? How do you want to spend your days in Mallorca? Do you prefer being within walking distance to shops and restaurants? Or is being close to the seaside and ports more important to you? Is an international community something you are looking for, or do you prefer a more local Spanish take on life?
Mallorca offers it all. The capital Palma, with its surrounding neighbourhoods are filled with cafes, restaurants and great shopping. Here, people live year-round and there is a mix to satisfy all tastebuds. But we also have smaller villages where life is quieter, and you can wake up and step out to your garden and pick a lemon from your tree.
What are non-negotiables for your daily life? Is it closeness to schools, or do you want to be able to play golf daily?
These are some of the questions that might be good to ask yourself before starting your search for a property on Mallorca. We are sure you already have many dreams and thoughts about how your dream property on Mallorca looks like, but to make it work for you, some practical decisions are good to make too. We at Gennel Properties have lived on Mallorca for multiple years and have a lot of experience from different areas on the island. We are happy to share our favourites with you!
Step-by-step buying process
Once you have decided on the essentials – location, type of property, and budget – the search for your new home can begin. We work closely with our clients throughout the process, discussing different options and helping to refine the search. If you are not currently on the island, we can arrange a viewing schedule over one or two days so you can see several suitable properties during your visit.
When you have found the property, you would like to buy, the next step is to make an offer. At this stage, the purchase price can be negotiated and details such as included fixtures, furniture, or other conditions can be discussed. We will communicate with the property owner on your behalf, and once both parties agree on the price and terms, the next step is to involve the lawyers so they can begin preparing the option or reservation contract.
Although hiring a lawyer is not legally required when buying property in Spain, it is strongly recommended. An experienced lawyer who specializes in Spanish property law helps ensure that all legal aspects of the purchase are handled correctly and that the buyer’s interests are protected.
The buyer’s lawyer typically assists with:
- Preparing the option or reservation contract
- Checking all property documents and contracts
- Verifying the correct registration of the property in the Land Registry
- Ensuring there are no legal issues or outstanding debts attached to the property
- Assisting with the NIE (tax identification number) application
- Advising on taxes and costs related to the purchase
- Managing the deposit payment and documentation for bank transfers
- Accompanying the buyer to the notary and translating documents if required
Before the option contract is signed, the lawyer usually obtains extracts from the Property Registry to compare the official records with the actual property. Small discrepancies in the registered size of the property are common, but this process can also reveal more significant issues, such as unregistered extensions or alterations. The lawyer will also check whether the property has an existing mortgage, confirm the ownership status, and ensure that there are no legal claims or debts that could transfer to the new owner.
Throughout the entire transaction, the lawyer helps ensure that the purchase proceeds smoothly and that ownership is transferred correctly according to Spanish law.
If you need assistance finding a qualified professional, we would be happy to recommend a trusted local lawyer to support you during your property purchase.
Taxes and costs when buying property in Mallorca
When buying property in Mallorca, it is important to budget for additional costs beyond the purchase price. Generally, buyers should allow around 10–15% of the property price to cover taxes, notary costs, and legal fees. Your lawyer will calculate the exact amount for your purchase, but this estimate provides a helpful guideline.
Property Transfer Tax (ITP) for resale properties
If you buy a resale property (a property that has already been owned), you will pay Property Transfer Tax (ITP). In the Balearic Islands, the tax is calculated progressively depending on the value of the property.
VAT for new-build properties
If you purchase a newly built property from a developer, you will pay VAT (IVA) instead of ITP.
- 10% VAT applies to residential properties.
- Up to 21% VAT may apply to land, commercial properties, and some garage spaces.
Notary and property registry costs
The purchase of property in Spain must be completed before a notary, who prepares the official deed of sale. The deed is then registered at the property registry. These costs, including stamp duty, are typically around 1% of the purchase price.
Legal fees
Most buyers choose to work with a lawyer to ensure that all legal aspects of the transaction are handled correctly. Legal fees are usually around 1% of the purchase price, depending on the complexity of the transaction.
Final note
The exact costs of buying property in Mallorca can vary depending on the property type and price. This information should therefore be considered a general guide. For precise calculations and legal advice, we recommend speaking with a qualified lawyer. If you would like assistance, we would be happy to recommend trusted professionals who can guide you through the purchase process.
Mortgage options
If you plan to finance your property with a mortgage, there are several options for you.
The possibility of a loan in your home country, is often the easiest and provides good conditions. Then you are also ready to move quickly when your dream home shows up. Another option is to contact a Spanish bank. They typically offer loans up to 70% for non-residents. It’s crucial to explore the best mortgage deals and ensure you meet the eligibility criteria.
We would recommend consulting with a financial advisor to help you understand your options and secure the best possible terms. We can help you with bank contacts and mortgage consultants we cooperate with.
Areas and Property Prices in Mallorca
Property prices in Mallorca vary significantly depending on location, views, and the overall quality of the property. In Palma, apartments typically range from approximately €400,000 to €2 million, with exceptional penthouses and beautifully restored residences in prime positions achieving the highest values.
In the prestigious southwest of the island, contemporary villas with sea views frequently exceed €3 million, while exclusive estates set in the countryside or within the Serra de Tramuntana can range from €1 million to well above €10 million, particularly where privacy, land, and architectural character come together.
When acquiring property in Mallorca, it is equally important to consider its enduring appeal. Certain locations continue to attract discerning international buyers year after year, particularly those offering panoramic views, privacy, and convenient access to Palma and international schools. Areas such as Son Vida, Bendinat, and Palma’s historic centre are especially known for their consistent demand.
Properties that combine elegant design, open views, outdoor living, and modern comforts tend to retain their value and perform strongly over time. Well-presented homes in prime locations not only attract greater interest but also achieve stronger resale performance.
At Gennel Properties, we guide our clients towards properties that offer both an exceptional lifestyle and lasting value, ensuring that each purchase is as considered as it is rewarding.
Why Work with a Local Real Estate Agent
Choosing the right real estate partner can make all the difference, especially when buying property in a foreign country. At Gennel Properties, we offer more than a list of properties — we provide a boutique, highly personalised service for buyers looking for exceptional homes in Mallorca.
We specialise in carefully selected properties across the island, including sea-view villas, luxury homes, charming countryside fincas, and elegant penthouses in Palma. By working closely with each client, we take the time to understand your lifestyle, priorities, and long-term plans, allowing us to present properties that truly match your vision.
Another advantage you will have when working with us is that you will have access to our off-market properties. Many times, homeowners choose not to have their property visible, but it is still for sale. It might be that they have a very special property that they only want serious buyers to see, maybe they want to limit the visibility for privacy reasons. Either way, many of these properties for sale on Mallorca will be sold without ever being published. We can guide you to your perfect property by giving you all options and arranging viewings.
We have also made the journey of relocating to Mallorca and we know the neighbourhoods and have local contacts that can be good to have to settle in your new home.
Our role is not limited to finding the right home. We guide you through the entire buying process, from identifying suitable properties and arranging viewings to negotiating the purchase and completing the transaction.
Many of our clients value discretion, quality, and peace of mind, and these principles shape everything we do. Whether you are relocating, investing, or searching for a second home in Mallorca, we aim to act as your trusted local advisor throughout the journey.
If you are considering buying property in Mallorca, we would be delighted to discuss your plans and help you find the right home.