Balearic Islands Buying Guide

A Complete Guide for International Buyers

Mallorca has become one of Europe’s most desirable destinations for international property buyers. With its Mediterranean lifestyle, excellent infrastructure, international schools, and strong property market, the island offers an exceptional combination of lifestyle and long-term value.

This guide explains everything you need to know when buying property in Mallorca as a non-resident.

Why Buy Property in Mallorca?

• Year-round mild climate
• High quality of life and safety
• International airports with direct flights
• Strong and stable real estate market
• Wide variety of properties: villas, fincas, apartments, new developments
• Excellent healthcare and international education

Whether you are looking for a holiday home, a permanent residence or an investment, Mallorca offers long-term appeal.

Can Foreigners Buy Property in Mallorca?

Yes.
There are no restrictions for foreign buyers purchasing property in Mallorca, whether EU or non-EU citizens.

The process is transparent and well regulated, provided you work with experienced local professionals.

The Buying Process Step by Step

1. Define Your Requirements

Location, property type, budget, lifestyle goals and investment objectives.

2. Obtain an NIE Number

The NIE (Número de Identidad de Extranjero) is mandatory to buy property in Spain.

3. Property Search & Viewings

Your agent will shortlist suitable properties and organise viewings, on-site or remotely.

4. Reservation Agreement

Once you find the right property, a reservation agreement is usually signed with a small deposit.

5. Private Purchase Contract

A private contract (Contrato de Arras) is signed and typically involves a 10% deposit.

6. Completion at the Notary

The final deed (Escritura Pública) is signed before a Spanish notary and ownership is transferred.

Costs & Taxes When Buying in Mallorca

Buyers should budget approximately 10–13% of the purchase price for costs and taxes.

Main costs include:

• Property Transfer Tax (resale): approx. 8–11%
• VAT + Stamp Duty (new build): approx. 10–11.5%
• Notary fees
• Land registry fees
• Legal fees

Your advisor should provide a full cost breakdown in advance.

Legal Considerations

It is strongly recommended to work with an independent lawyer who will:

• Verify legal ownership
• Check planning permissions and licenses
• Confirm the property is free of debts or charges
• Review contracts and protect your interests

This is especially important in rural areas or when buying fincas or renovation projects.

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Financing & Mortgages

Spanish banks offer mortgages to non-residents, typically up to 60–70% loan-to-value.

Requirements usually include:

• Proof of income
• Credit history
• Bank valuation of the property

Mortgage approval can be arranged before or during the buying process.

Best Areas to Buy in Mallorca

Mallorca offers a wide variety of locations depending on lifestyle preferences:

• Palma & surrounds – urban lifestyle, amenities, year-round living
• South-West Mallorca – luxury villas, marinas, international community
• North Mallorca – natural beauty, traditional towns, beaches
• Central & rural Mallorca – fincas, privacy, countryside living

Choosing the right area is key and should align with your lifestyle and usage plans.

Investment & Rental Potential

Mallorca remains a strong long-term investment market thanks to limited supply and high demand.

Important to note:

• Holiday rentals require a valid tourist licence
• Regulations vary by area and property type
• Long-term rentals remain in high demand

Professional advice is essential to ensure compliance and maximise returns.

Common Mistakes to Avoid

• Not budgeting correctly for taxes and costs
• Skipping legal due diligence
• Buying without understanding rental regulations
• Choosing location based only on price

Working with experienced local professionals helps avoid these pitfalls.

Buying property in Mallorca is straightforward when guided properly. A local expert will help you:

• Access the best properties (including off-market)
• Navigate legal and technical aspects
• Negotiate effectively
• Save time and avoid costly mistakes

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Useful next steps: consult our Balearic real-estate glossary, review tax considerations for foreign buyers and compare Mallorca property prices by area.

Start Your Property Search in Mallorca

If you are considering buying property in Mallorca and would like professional guidance, our team is here to help you every step of the way.

Contact us for personalised advice and expert local knowledge.