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Build your own dream home in Mallorca


Perhaps you have in mind exactly what you would like your ideal property in Mallorca to look like, where it should be situated and the dimensions and specifications it should include. Trouble is your dream villa doesn’t seem to have been built yet! The solution? Build one of your own, just speak to the experts at Balearic Properties, we have project managers who will take care of everything and you will not have to worry about too much – well, perhaps brood over the bathroom tiles or kitchen furniture!!

Property programmes showing entrepreneurial individuals creating their new home from foundation to fixtures have perhaps contributed to the interest that there is in starting from scratch and building your own home in Mallorca.

The cost of buying land has dropped and an increasing number of people are taking advantage of this. However, they warn, it is important to calculate all the potential costs before embarking on a build-it-yourself venture. 

Our project managers at Balearic Properties will give you exact, stage by stage figures.

How to calculate the costs

Although the majority of costs lie with purchasing the site and the building work itself, there are other on-costs that you can easily neglect to build into your calculations.

Of the total cost, you can expect to pay:

  • 45% for purchasing the plot
  • 40% for the building work
  • 8% for the professional fees
  • 7% for taxes and licences   

It is important that you select your site carefully. It might sound obvious but you must check with the local municipality that you can build there and what restrictions there might be in terms of dimensions of the building. You should check the current ownership of the land and that the specifications match the registration recorded in the Land Registry.

You need to consider your utilities too. Is your plot accessible from a public road? Are services available including water supply, sewage and electricity?

On top of the building costs and the price of the plot you must add the costs of the Deed of Sale, notary fees and registration in the Land Registry in Mallorca. This usually comes to around 0.5% of the purchase price.

There will be transfer tax to pay of between 7% and 9% and if you are a company you will have to pay 21% in VAT. There will also be VAT to pay on the building work itself that will come to around 10% of the contract budget. VAT (IVA) also applies to architects’, technicians’ and builders’ fees all at a rate of 21%.

Make sure the property your are buying is 100% legal

However expert you feel you may be, engaging an architect in Mallorca for your project is essential. You must have the correct licences to go ahead and apply for provisional water and electricity supply whilst the property is being built.

Reading through this, it is perhaps not surprising that we recommend that you engage a good solicitor with experience in conveyance, property law and taxes in Mallorca to ensure that you take the correct steps in legalising your new home.

At times, it might sound like an obstacle race to construct your own home; however, it could still be a cheaper way to ensure that you get exactly what you envisaged from your Majorcan dream home over the years.

Unique Building Plots for sale at Balearic Properties:

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The real estate experts at Balearic properties share their knowledge and experience of the real estate market in Mallorca As international property consultants.


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