People who buy or rent a property on Mallorca often underestimate the running costs. When buying, the purchase price, notary fees and transfer tax are factored in, but running costs are frequently rough guesses. This article shows you what you can realistically expect to pay per year, how IBI, Basura, water and electricity actually work, and where municipalities differ.
Running costs of a property
The five main items are always the same:
- IBI (Impuesto sobre Bienes Inmuebles): the annual property tax.
- Basura: the municipal waste charge.
- Water: supplier varies by municipality (Emaya, Aqualia, local utilities).
- Electricity: Endesa, Iberdrola, Naturgy or smaller providers.
- Comunidad fee: only for properties in apartment buildings - see Property management on Mallorca.
On top of these, depending on the property: building insurance, alarm system subscription, gardener, pool maintenance, solar installation and the notional income tax for non-residents.
Typical annual totals 2026
| Property type | IBI | Basura | Water | Electricity | Total excl. Comunidad |
|---|---|---|---|---|---|
| 80 m² flat in Palma | 250 to 600 EUR | 120 to 160 EUR | 200 to 400 EUR | 600 to 1,200 EUR | 1,170 to 2,360 EUR |
| 180 m² terraced house Santa Ponsa | 800 to 1,800 EUR | 200 to 300 EUR | 400 to 800 EUR | 1,200 to 2,400 EUR | 2,600 to 5,300 EUR |
| 300 m² finca Alaró | 1,500 to 4,000 EUR | 300 to 500 EUR | 600 to 1,500 EUR | 1,800 to 3,600 EUR | 4,200 to 9,600 EUR |
The range is deliberately wide. Two factors determine where you land within it: the cadastral value of your property (for IBI) and your usage patterns (for electricity and water).
Tip: Check the IBI notice before buying
Ask the seller for the IBI notices from the last two years before you sign a purchase contract. They show you the current cadastral value, any arrears and the Basura charge. A rise from one year to the next is a signal that a revaluation has taken place.
IBI - Property tax on Mallorca
The Impuesto sobre Bienes Inmuebles is the largest recurring tax for property owners. It is levied annually by the municipality and is ring-fenced as a source of revenue for the local authority.
How IBI is calculated
IBI = Valor Catastral (cadastral value) x Tipo Impositivo (municipality's tax rate)
- Valor Catastral: determined by the land registry and is typically 30 to 70 percent below market value. It is revalued every 8 to 10 years (ponencia de valores).
- Tipo Impositivo: set by the municipality. The usual range is 0.4 to 1.1 percent.
Example: a flat in Palma with a Valor Catastral of 80,000 EUR and a tax rate of 0.62 percent pays 496 EUR IBI per year.
Surcharge for second homes
Many municipalities have in recent years introduced a surcharge on IBI for Inmuebles de uso residencial desocupados or viviendas de uso no habitual where the property is not the owner's primary residence. Palma is planning an increase of up to 50 percent for 2026 on permanently vacant dwellings. Check before buying what rule your municipality applies.
Payment and deadlines
- Single payment or instalments via Plan Personalitzat de Pagament
- Direct debit discount (bonificación por domiciliación) of 3 to 5 percent in many municipalities
- Deadlines differ by municipality, usually late summer to autumn
- Non-payment attracts surcharges (recargo) of up to 20 percent plus interest
Waste charges (Basura)
The Basura (Tasa de Recogida de Residuos) is levied municipally and covers collection and disposal. In Palma, the Ayuntamiento distinguishes by type of dwelling:
- Small flats under 60 m²: around 100 to 130 EUR per year
- Flats 60 to 120 m²: around 130 to 160 EUR per year
- Detached houses: 200 to 400 EUR per year
- Commercial use: significantly higher, based on floor area and sector
The Basura is usually collected together with or shortly after the IBI. In some municipalities (e.g. Calvià, Andratx) it appears on a separate bill.
Bulky waste and special waste
Bulky items (Enseres) are collected free of charge in Palma by calling 971 771 100. Book an appointment, then leave the items at the designated spot the evening before. Building rubble and electronic waste go to the Punto Verde or Deixalleria - see also the notes in the article Setting up electricity, water and internet.
Water
Water is perhaps the most underestimated cost item on Mallorca. Suppliers use tiered tariffs: up to a certain consumption threshold water is cheap, above it gets expensive. The aim is to penalise waste, especially in gardens and pools.
Typical consumption
- 1 person, economical: 80 to 100 litres per day
- 1 person, average: 130 to 170 litres per day
- House with pool (12 m³): +30 to 50 m³ per year for topping up
- Garden irrigation Mallorca-style: highly variable, 200 to 2,000 m³ per year
Tariff structure in Palma (Emaya, 2026)
| Block | Consumption per person per quarter | Price per m³ |
|---|---|---|
| Block 1 | up to 12 m³ | approx. 0.60 EUR |
| Block 2 | 12 to 24 m³ | approx. 1.20 EUR |
| Block 3 | 24 to 36 m³ | approx. 2.40 EUR |
| Block 4 | over 36 m³ | approx. 4.80 EUR |
The blocks apply per person registered in the household (dependent on empadronamiento). Registered residents get cheaper rates than owners who are only registered as users.
Watch out: Leaks explode on your bill
An undetected dripping tap or a leaking pool inlet can quickly push you into Block 3 or 4. Check your meter reading regularly, especially if you commute between Mallorca and Germany.
Electricity
Electricity is the largest running cost item on Mallorca. The reasons: air conditioning in summer, heating in winter months (many fincas are poorly insulated), pool pump, hot water heating.
Tariff system
Since 2021, a three-part time-of-use tariff applies throughout Spain:
- Punta (expensive): Mon-Fri 10:00 to 14:00 and 18:00 to 22:00
- Llano (medium): Mon-Fri 8:00 to 10:00, 14:00 to 18:00, 22:00 to 24:00
- Valle (cheap): Mon-Fri 00:00 to 08:00 and all weekends and public holidays
Running the dryer, dishwasher and washing machine at night or at weekends saves a significant amount. The contracted power (potencia contratada in kW) is charged monthly regardless of consumption. Contracted power that is set too high is one of the most common hidden cost drivers.
Providers and switching
- Endesa: traditional market leader, many tariffs
- Iberdrola: strong green energy offerings
- Naturgy: competitive fixed-price tariffs
- Holaluz, Podo, Total Energies: alternative providers often with more competitive terms
Switching provider is free and can be done online. Getting a refund on overly high power settings only works when switching provider or on explicit request - see also Setting up electricity, water and internet.
Comparison by municipality
Running costs can differ considerably between municipalities. As a rough guide for 2026:
| Municipality | IBI rate | Average Basura | Notes |
|---|---|---|---|
| Palma de Mallorca | 0.55 to 0.65% | 130 to 160 EUR | Plan Personalitzat, surcharge for vacant dwellings |
| Calvià | 0.45 to 0.55% | 200 to 280 EUR | High waste charges due to tourism |
| Andratx | 0.50 to 0.60% | 180 to 250 EUR | Upmarket areas, corresponding Valor Catastral |
| Pollença | 0.60 to 0.75% | 180 to 260 EUR | Often high cadastral values |
| Manacor | 0.55 to 0.70% | 150 to 220 EUR | Mid-range figures, solid infrastructure |
| Alaró | 0.40 to 0.55% | 150 to 200 EUR | Cheaper, but longer distances |
| Santanyí | 0.50 to 0.60% | 180 to 250 EUR | Touristy, IBI moderate |
These figures are indicative and shift every year. Before buying it is worth doing a direct comparison: look at the IBI notice and Basura bill from the seller, cross-reference the floor plan and cadastral value, and ask neighbours about their electricity consumption.
Keeping your running costs under control protects you from the most common disappointment in the first years on Mallorca: that living here costs more than the purchase price suggests. And if you rent out your property, a clear utility apportionment clause in the contract prevents disputes later on, whether for seasonal, long-term or holiday lets.