Population 950,000
Area 3,640 km sq
Timezone GMT +1
Language Spanish (Catalan)
Mallorca is the Capital Island of the Spanish Balearic Islands, located in the heart of the Mediterranean. Easily accessible and increasingly popular for higher end tourism, the island offers a diverse range of property options, from luxury estates and resorts to country fincas, old and new town houses to waterfront apartments and high-end new residences. Investment here is generally viewed to be low risk, although it is more expensive per m2 than on the mainland (excluding Madrid and Barcelona).

Unlike most other areas of Spain, property prices in cosmopolitan Mallorca are higher than the peak before the 2007/8 crash. A recent cumulative variation study found house prices have risen 6% between 2006 and 2021 in Mallorca, whereas they have dropped 33% on the mainland. Certainly property prices in the Balearics remain some of the highest in Spain, rising year on year.
There is a strong second home market in Mallorca, and it’s home to a number of expats from countries including UK, Scandinavia and Germany drawn by the sunny climate, natural attractions, year round culture and laid-back lifestyle. Gastronomy is on the rise here; there are now10 Michelin Starred restaurants in Mallorca.

Our partners are located in the North and in the South West of the Island. In the North lies Puerto Pollensa, a small, family friendly resort town with everything sought after within it, including stunning sea front villas, perhaps the best on the island. Up in the hills there offers more privacy, and wonderful views to savour overlooking the port and beaches around the bay.
Pollensa is an ancient town with rich history near Puerto Pollensa. Visitors explore the narrow streets and main square with its cafes, bars and restaurants. There’s a great market here. Other attractions include ‘Pont Roma’ a roman bridge, and Puig de Pollensa, a small mountain with a monastery on its top. Country houses are found inland.
Alcudia is known for its beaches, old town and neo-Gothic Sant Jaume church built into the restored medieval walls. Popular with families, it is the main tourist centre for the North of Mallorca, on the east coast. In nearby upmarket Alcanada there is found the only golf course directly on the coast.
Palma is the island’s capital, and further round the southern coast to the west lies Puerto Portals, possibly two of the most glamourous location on the island, with designer shopping, high-end restaurants and, luxury marina. Also in the South West, below the Tramuntana mountains are Andratx and Port’Andratx.
The process of purchasing property in Mallorca is not overly complicated with completion possible within eight weeks of offer accepted. Deals are legally binding from early on so a lawyer is advisable from offer stage and get as much information as possible about the property in advance.

Buyers need a Spanish tax number (NIE) and typically, a bank account in Spain to pay ongoing rates, utilities and other charges such as mortgage if required. Allow an additional 8-14% on top for property taxes & fees. Figures can be checked in advance and will vary depending on location, resale or new.

The Golden Visa residency investment scheme qualifies in the Balearics, as well as the mainland. In Mallorca demand post pandemic has been greatest for property over €750,000, with luxury new properties, detached homes and villas, apartments with outside space and privacy holding a premium. Townhouses remain sought after, property around the luxury marinas, and for those wishing to make their own mark, there remain plots of land available for construction (subject to permissions). If you are looking to invest or part-let your property be sure to buy somewhere with a Tourism License, these are getting hard to obtain.
Post Brexit, our partners have noted Brits spending more on second homes rather than buying to relocate. You are considered tax resident if you stay longer than 183 days in the country. Non-residents will be liable for tax on any income generated in Spain. Those who own a home purely for private use are liable for annual imputed income tax, based on cadastral value. The tax rate is 19% for EU & EEA citizens and 24% for others, including UK.

The Spanish tax system is complex, so consult a specialist. There is a Wealth Tax applicable for assets €700,000 upwards, although the amount may vary according to region. Capital Gains Tax applies in Spain – and inheritance or gift tax.

Please do get in touch with us and we can connect you to our partners.
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