Buying Property in Mallorca

Mallorca offers a unique combination of Mediterranean lifestyle, excellent infrastructure, international schools, world-class healthcare, and strong property appreciation. The island attracts a diverse international community, with significant German, British, Scandinavian, and French populations.

Property values in prime areas such as Son Vida, Puerto Portals, Bendinat, and Andratx have shown consistent growth over the past decade, with luxury properties appreciating 5–8% annually. The rental market is equally robust, with holiday rental yields of 4–7% in premium locations.

Spain's political stability, EU membership, and excellent connectivity (Palma airport serves 200+ destinations) make Mallorca one of Europe's safest and most accessible luxury property markets.

The NIE (Número de Identificación de Extranjero) is a tax identification number required for all foreigners conducting financial transactions in Spain. You will need a NIE before you can buy property, open a bank account, or sign contracts.

You can apply for the NIE at the Spanish Consulate in your home country or at the Oficina de Extranjeros in Palma. The process typically takes 2–4 weeks. Required documents include your passport, completed EX-15 form, and proof of reason for application.

Balearic Blue can assist you with the NIE application process through our network of trusted legal advisors.

The property buying process in Spain follows a well-established legal framework. Once you have identified your ideal property, the typical steps are:

1. Contrato de Arras: A preliminary contract where the buyer pays a deposit (typically 10% of the purchase price) to reserve the property. If the buyer withdraws, they forfeit the deposit; if the seller withdraws, they must return double the deposit.

2. Due Diligence: Your lawyer will verify the property's legal status, check for debts or encumbrances at the Land Registry, confirm building licences, and review community of owners regulations if applicable.

3. Escritura Pública: The final purchase is completed before a Spanish notary. Both parties sign the deed, the remaining balance is paid, and ownership transfers. The deed is then registered at the Land Registry.

We strongly recommend engaging an independent Spanish lawyer specialising in property law.

Spain's Golden Visa programme grants residency to non-EU nationals who invest €500,000 or more in Spanish real estate. This visa provides the right to live and work in Spain, travel freely within the Schengen Area, and can lead to permanent residency and eventually citizenship.

Important update: As of April 2025, the Spanish government has announced changes to the Golden Visa programme. We recommend consulting with our legal partners for the most current requirements.

Key benefits include: residency for the investor and immediate family members, no minimum stay requirement, renewable every two years, and access to Spain's healthcare and education systems.

The Beckham Law (Royal Decree 687/2005) offers significant tax advantages to individuals relocating to Spain. Under this regime, qualifying new residents pay a flat rate of 24% on Spanish-sourced income (up to €600,000), compared to standard progressive rates that can reach 47%.

To qualify, you must not have been a Spanish tax resident in the previous 10 years and must be moving to Spain for employment or as a company director. The regime applies for the year of relocation plus the following five tax years.

This can result in substantial tax savings for high-net-worth individuals and executives relocating to Mallorca.

Spanish banks offer mortgages to non-residents, typically lending up to 60–70% of the property's appraised value. Interest rates for non-residents generally range from 2.5–4.5%, with terms of up to 20–25 years.

To apply for a mortgage, you will typically need: proof of income, bank statements for the past 6–12 months, copy of your passport and NIE, and details of existing debts and assets.

The mortgage approval process usually takes 4–8 weeks. We recommend obtaining a pre-approval before beginning your property search.

Balearic Blue can introduce you to mortgage brokers specialising in non-resident financing.

Owning property in Mallorca involves several recurring annual costs:

IBI (Impuesto sobre Bienes Inmuebles): The annual property tax, typically 0.4–1.1% of the cadastral value. For a luxury property, this can range from €1,500 to €8,000 per year.

Community Fees: If your property is part of a community of owners, monthly fees range from €100–€500 depending on shared amenities (pools, gardens, security).

Home Insurance: Comprehensive cover for a luxury property typically costs €1,000–€3,000 per year.

Non-Resident Income Tax: Even if you don't rent your property, you are liable for imputed income tax of approximately 1.1% of the cadastral value.

For a typical luxury villa, total annual costs (excluding mortgage) range from €8,000 to €25,000.

As part of Isle of Mallorca Group, Balearic Blue clients have access to a comprehensive ecosystem of luxury services that make island life seamless:

Bluebnc Yachting: 20+ professionally managed motor yachts from 40ft to 120ft, available for day charters, sunset cruises, and weekly rentals. Full yacht management and brokerage services.

Azul Stays: 45 handpicked luxury villas for holiday rentals, each with full concierge service and 24/7 guest support. Ideal for experiencing Mallorca before committing to a purchase.

Azul Cars: A premium fleet of 100+ vehicles including Mercedes-Benz, supercars, and convertibles. Airport delivery, villa drop-off, and round-the-clock roadside support.

Advisory Services: Trusted fiscal and legal advisors who specialise in international relocation, tax planning, and property law in the Balearic Islands.

This integrated approach means that whether you are visiting for the first time or have already made Mallorca your home, we can serve every aspect of your luxury lifestyle on the island.