Buying property in Mallorca has always stirred excitement, but 2025 brings with it a new layer of uncertainty. With the Spanish government proposing a 100% tax on non-EU property buyers and scrapping the Golden Visa, many prospective investors are feeling nervous. But while the headlines may suggest closed doors, the reality on the island tells a different story.

“People are asking for a lot of reassurance right now,” says hc/ property buyer’s agent, Lucy Adamson. “They’re reading about protests and tax threats and wondering if foreigners are still welcome. But in truth, the experience on the ground is very different—Mallorca remains incredibly welcoming.”

Despite political noise, the island’s luxury property market continues to attract high-net-worth buyers from around the globe. The allure of Mallorca’s lifestyle has not faded. Nor has demand for quality real estate. Adamson believes context is crucial: “It’s important to remember that what’s being said in the media is often politically driven. These tax proposals aren’t grounded in legal reality. What we see in practice is that foreign buyers are still coming, still investing, and still loving life here, with the majority of locals on their side.”

What the experts are saying

Legal experts back this up. Property lawyer Pelayo de Salvador, founder of desalvador., views the proposed 100% tax as legally unsound and politically motivated—an idea unlikely to survive scrutiny by EU courts, which have historically ruled against discriminatory measures of this kind. He also points out that the tax would affect only a small fraction of property transactions, making its implementation both impractical and contentious.

Favourable financing

As an unexpected plus, many buyers are waking up to Spain’s attractive financing conditions. While Spain and Germany both follow the European Central Bank (ECB) base rate—currently 4.25%—Spanish banks are offering non-resident buyers mortgage rates as low as 2.75% to 3.5%, particularly on fixed-term loans. This is in stark contrast to Germany, where non-resident financing is limited and often less favourable.
The difference becomes even clearer when compared to the UK, where the Bank of England base rate sits at 5.25%. Mortgage rates for UK buyers are significantly higher, and many are surprised to discover they can borrow in Spain at lower interest—even as non-residents.

After the Golden Visa

The end of the Golden Visa has also undoubtedly shifted the landscape, but not the desire to buy. With alternative residency options still available and many buyers motivated more by lifestyle than legal status, interest in Mallorca remains high. In a market defined by elegance and emotion, it’s reassurance, not residency, that today’s buyers are seeking. And with sound legal advice and local guidance, Mallorca still delivers, offering not just a home, but a place worth investing in.