How to buy property in Mallorca as a foreigner

1. Can foreigners buy property in Mallorca?

Yes — Spain places no restrictions on foreign ownership of real estate. EU citizens, British buyers post-Brexit, Americans, Swiss and buyers from the rest of the world can all purchase property on the same legal footing as Spanish nationals. The Balearic Islands (Mallorca, Menorca, Ibiza, Formentera) follow the same national framework with a handful of regional taxes and rural planning rules layered on top.

2. Get your NIE first

Every foreign buyer needs an NIE (Número de Identificación de Extranjero) — a Spanish tax number issued by the National Police or a Spanish consulate abroad. Without it you cannot sign the deed, open a bank account, or pay tax. Allow 2–6 weeks depending on where you apply.

3. Budget for the real cost

The advertised price is only the start. On top of the purchase price, budget for:

• Resale property (ITP transfer tax): 8% up to €400k, rising in bands to 13% above €2m in the Balearics.
• New build: 10% VAT (IVA) plus 1.2% stamp duty (AJD).
• Notary and land registry: approximately 0.5–1%.
• Independent legal fees: approximately 1–1.5%.
• Mortgage setup, if financing: approximately 1–2%.

Total transaction costs typically land between 11% and 15%.

4. The buying process, step by step

1. Offer accepted. A reservation contract removes the property from the market, usually against a €6k–€20k deposit.
2. Legal due diligence. Your lawyer verifies title, debts, licences and planning at the land registry (Registro de la Propiedad) and town hall.
3. Private purchase contract (contrato de arras). Signed within 2–4 weeks, with a 10% deposit. If the buyer walks away they lose it; if the seller walks away they pay double.
4. Mortgage in place (if financing). Spanish banks typically lend 60–70% LTV to non-residents.
5. Escritura at the notary. Final balance is paid, the deed is signed, and the keys change hands the same day.
6. Registration. The notary sends the deed to the land registry; your lawyer settles the taxes within 30 days.

5. Popular areas for international buyers

Different buyers gravitate to very different corners of the island. The most active areas for international buyers are:

• Palma — the capital, best for city living, culture and rental yield.
• Son Vida — Mallorca's most established prestige address.
• Deià and Valldemossa — quiet, cultural, Tramuntana mountain villages.
• Portals Nous and Puerto Portals — marina lifestyle, close to Palma.
• Santa Ponsa and Andratx — south-west sunshine, golf, sea views.

6. Rental licences and rural land

If you plan to rent short-term, verify the property has (or can obtain) a valid ETV tourist rental licence — Mallorca has tightened issuance sharply. For rural land, check that the plot is "urbano" or has a valid cédula de habitabilidad, and confirm build ratios with the town hall before you commit.

7. Residency, Golden Visa and taxes after purchase

Spain's Golden Visa route for real estate investors of €500k+ closed in April 2025. Buyers seeking residency now use the non-lucrative visa or a work/business route. Once you own the property you pay annual IBI (council tax), non-resident income tax on imputed rent, and wealth tax above certain thresholds — a Spanish gestor or lawyer will handle it for a modest annual fee.

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