Buying Property on Mallorca - A Complete Buyer's Guide

The Property Market on Mallorca

The Mallorca property market has been very stable for years and is popular with international buyers. Prices vary considerably depending on location:

• Palma city centre: 5,000-9,500 EUR/m2 (prime areas such as Son Vida or Portixol up to 12,000 EUR/m2)
• Palma surroundings (Santa Ponca, Calvia): 5,500-7,500 EUR/m2
• Coastal municipalities (Andratx, Port de Soller): 6,500-12,000 EUR/m2
• Inland (Sineu, Selva): 3,500-5,000 EUR/m2

An average 2-bedroom flat in Palma costs around 350,000-500,000 EUR, while a house in the surrounding area costs 450,000-700,000 EUR. Prices have been rising steadily for years, across the island by roughly 9.8% last year.

Sources: Porta Mallorquina Market Study 2026, Engel & Volkers Mallorca 2026, Yes! Mallorca Property Market 2026, Idealista Price Trends Palma. As of March 2026.

NIE and Legal Requirements

The NIE (Numero de Identidad de Extranjero) is the most important requirement for buying property as a foreigner. This 9-digit number is your identification in Spain and is required by the notary.

Applying for a NIE

You can apply for the NIE free of charge at the Extranjeria (immigration authority). In Palma this is located at Calle Miquel Santandreu 4. You need:

• Passport (original and copy)
• Completed form EX-15
• Proof of your place of residence (for example a tenancy agreement or bank statement)

Processing takes 1-2 weeks. You receive a document with your NIE that you should keep safe.

Spanish Bank Account

You need a Spanish bank account for the mortgage and official transactions. With your NIE you can open an account at a bank such as Banco Santander, BBVA, CaixaBank or Sabadell. This is also possible as a non-resident.

The Buying Process in Detail

Step 1: Clarify Budget and Financing

Before you start looking, define your budget and clarify your financing options. If you need a mortgage, talk to banks and get several offers. Most Spanish banks offer mortgages to non-residents, but require a credit rating and proof of income.

Step 2: Find a Property and Sign the Oferta

When you find a property you like, you sign an "Oferta" (reservation contract). This is a non-binding statement of intent that reserves the property for you, normally for 7-14 days. The Oferta sets out the price and the basic conditions.

Step 3: Engage a Lawyer

Engage an independent lawyer (abogado) who is not connected to the agent. The lawyer checks:

• The title deed (titulo de propiedad)
• Land registry entry (finca registral)
• Any charges or existing mortgages
• Tax arrears (recibos de la Comunidad)
• Liabilities and defects

Cost: 800-1,500 EUR for the legal work.

Step 4: Compraventa (Purchase Contract)

The lawyer prepares a purchase contract. This is the binding contract between buyer and seller. It sets out:

• Purchase price
• Payment conditions
• Handover date
• Rights and obligations of both parties
• Disclosure obligations for defects

Step 5: Signing at the Notary

The "Escritura" (certified purchase deed) is signed at the notary (escribano). This is the official completion of the purchase. Both parties must be present or have granted a power of attorney. The notary registers the deed in the land registry (Registro de la Propiedad).

Notary costs: 0.5-1% of the purchase price (for a 400,000 EUR property: roughly 2,000-4,000 EUR).

Step 6: Land Registry Entry

After the notarial deed, the property is registered in the land registry in your name. This normally takes 1-2 weeks. You receive a copy of the land registry extract (nota simple).

Step 7: Registration with the Tax Authority

You must register with the Agencia Tributaria and apply for a tax number (CIF or NIF). This is important for paying property tax and other taxes.

Taxes and Additional Costs When Buying Property

The additional costs when buying property are substantial and need to be factored into the budget. Budget for 10-13% of the purchase price.

ITP (Impuesto sobre Transmisiones Patrimoniales)

This is the transfer tax on property purchases. It amounts to 8-11% of the purchase price (the rate depends on the autonomous community; in the Balearic Islands it is 8-11%). This is the largest tax item.

Example: For a 400,000 EUR property you pay roughly 32,000-44,000 EUR in ITP.

AJD (Actos Juridicos Documentados)

This stamp duty amounts to roughly 0.5-1% of the purchase price and is paid to the notary.

Notary (Escribano)

The notary charges 0.5-1% of the purchase price for issuing the purchase deed, payable directly at the notary appointment.

Land Registry Entry (Registro)

Registering in the land registry costs roughly 0.5% of the purchase price.

Legal Fees

An independent lawyer typically charges 800-1,500 EUR for reviewing and accompanying the buying process.

Technical Inspections

A structural survey (informe tecnico) costs 300-800 EUR, but is highly recommended for finding hidden defects.

Example calculation for a 400,000 EUR property:

• Purchase price: 400,000 EUR
• ITP (10%): 40,000 EUR
• AJD (0.7%): 2,800 EUR
• Notary (0.7%): 2,800 EUR
• Land registry (0.5%): 2,000 EUR
• Legal fees: 1,200 EUR
• Technical inspection: 600 EUR
• Total additional costs: approx. 49,400 EUR (12.4%)
• Total amount: approx. 449,400 EUR

Financing and Mortgage (Prestamo Hipotecario)

Many foreign buyers finance their property purchase with a mortgage from a Spanish bank or their home bank.

Mortgage Conditions

• Loan-to-value (LTV): Normally 60-80% of the purchase price. A 400,000 EUR property can be financed with roughly 240,000-320,000 EUR.
• Interest rate: Currently between 3.5-5.5% (depending on rate type and bank). Variable rates with a cap (Euribor plus margin) are most common.
• Term: Typically 20-30 years. Shorter terms are possible but increase the monthly payment.
• Additional costs: Arrangement fee (Apertura, roughly 1%), insurance (Vida y Danos, roughly 0.5-1%), registration fees (roughly 0.2%).

Requirements for a Mortgage

You need:

• NIE and Spanish bank account
• Proof of income (last 2-3 tax returns)
• Bank statements (last 3-6 months)
• Credit reference check (ASNEF)
• Proof of creditworthiness

Mortgage Banks on Mallorca

• Banco Santander: Major bank with good terms for foreigners
• BBVA: Also a large bank with an international client base
• CaixaBank: Regional bank with good service
• Sabadell: Smaller bank with flexible conditions

Transferring Money to Spain

For large amounts you should use a specialist money transfer service, such as Wise (formerly TransferWise). This is cheaper than a bank transfer and offers better exchange rates. The fee is roughly 1-2%.

Typical Pitfalls When Buying Property

Other important points:

• Community charges: Check whether the flat has any debts to the owners' community (comunidad de propietarios). These often transfer to the new owner.
• Seller's mortgage: Make sure the property is not still encumbered with a mortgage. This must be visible in the land registry.
• Renovation needs: A technical inspection is worthwhile. Older houses on Mallorca can have hidden problems (damp, electrics, drainage).
• Zoning: Check in the Catastro (land registry office) whether the property is in a protected zone or subject to building restrictions.
• Non-resident tax: Even as a non-resident you must pay property tax (IBI) and register for taxation.