The price tag of buying a property in paradise

Make informed decisions before investing in your dream home in Mallorca

If you’ve ever been fortunate enough to experience the beauty of Mallorca, you understand that its allure transcends mere words. Many who visit find themselves dreaming of calling this paradise home.

Yet venturing into the world of property in Mallorca requires more than just a longing for the perfect lifestyle— it demands a thorough grasp of the property buying process, especially for foreigners. Navigating the confusion of Spanish legal and tax systems can be overwhelming. When buying a property in Mallorca, buyers can expect to pay additional costs that are usually between 12–17% of the purchase price. Let’s go over the basic charges associated with acquiring a new island home.

Architect Alejandro Palomino


Buyers need to be prepared for purchase taxes, notary fees, and property registration costs. Firstly, there are purchase fees to consider, including purchase tax (stamp duty), which is calculated in bands ranging from 8% to 13%. For new properties, buyers can expect a 10% VAT plus 1.5% AJD. The Property Transfer Tax (ITP), standing at 8% for properties up to €400,000, with incremental increases for higher values.

Notary fees are another expense, typically these can range from 600€ to 2,000€ depending on the property‘s value. Legal fees also come into play, usually around 1% of the property price, although they may be negotiable.

Non-EU citizens might need to factor in visa costs, ranging from 500-2,000 euros, if they wish to reside year-round in Spain. Registering the property incurs fees, typically ranging from 300€ to 1,200€, while mortgage-related expenses, such as valuation fees and arrangement fees, should be considered if a mortgage is necessary.

Annual Wealth Tax applies to residents‘ worldwide assets and non-residents‘ Spanish assets, particularly for high-end properties. Finally, if the property is intended for rental income, buyers should account for income tax implications, which vary based on legal residency in Spain.

“When buying a property in Mallorca, buyers can expect to pay between 12–17% of the purchase price in costs”


There are often hidden costs and additional fees associated with purchasing or selling property in Mallorca. These may include property maintenance fees, utility connection charges, and home insurance premiums. There are annual taxes like the local council tax (IBI) and potential mortgage fees, while sellers must also consider real estate agent fees, capital gains tax, plusvalía tax, legal fees, and the cost of obtaining an energy certificate. It‘s crucial to factor in these extra costs when budgeting for your real estate transaction to avoid any financial surprises down the line.

Mallorca‘s real estate market promises a high return on investment and a lifestyle beyond compare. To achieve the dream of owning a piece of paradise, the right knowledge and guidance is needed. With diligent planning, turning your property aspirations into reality is not just attainable but entirely within reach.

Text by Lydia Carey

Address details

hc/ Living & Business

C/ del Jardi Botanic 2 07012 Palma de Mallorca

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