Buying property in Mallorca involves more than the purchase price. Buyers should consider Property Transfer Tax or VAT, notary and Land Registry fees, independent legal advice and, where applicable, financing costs. For resale properties in the Balearic Islands, the standard Property Transfer Tax (ITP) currently ranges progressively from 8% to 13%.
Equally important is a thorough legal review of the property. Land Registry information, planning status, licences and relevant documentation should be independently verified before completion. Below we explain the key stages, taxes and costs involved when buying property in Mallorca.
How does buying a property in Mallorca work?
Search and property selection
The process begins with a clear search profile covering location, property type, budget, intended use and other relevant criteria. Micro-location, surroundings, privacy, future development and resale potential can be just as important as the property itself.
Based on this profile, we select properties we consider genuinely relevant, including opportunities from our network and the off-market property market in Mallorca.
Viewings, offer and negotiation
Once a shortlist has been established, we coordinate individual property viewings. A visit allows buyers to assess aspects such as location, orientation, privacy, noise levels, plot and actual views.
When a suitable property has been identified, we assist with the offer and negotiation. Depending on the transaction, negotiations may include price, payment terms, completion date, contents and other conditions.
Client verification when buying property in Mallorca
In accordance with Spanish Law 10/2010 on the Prevention of Money Laundering and Terrorist Financing and other applicable regulations, Finest Selection Real Estate is required to apply the legally prescribed client due diligence measures. At the appropriate stage of a prospective transaction, we may therefore be required to verify the client and, where applicable, the beneficial owner, and obtain information relating to the proposed transaction and source of funds.
Prospective buyers and investors will receive our confidential Client Verification Form directly from Finest Selection when appropriate. All information and documentation is treated with strict confidentiality and in accordance with applicable data protection regulations.
Legal and technical due diligence
Once the principal terms have been agreed, we recommend an appropriate independent legal and, where necessary, technical review.
This may include verification of:
ownership and Land Registry status
charges and third-party rights
planning and building status
licences and official documentation
consistency between the property and its documentation
technical condition where appropriate
Historic buildings, rural properties and properties with subsequent alterations can require particularly careful investigation in Mallorca.
Contracts and completion
Before completion, the parties may enter into a reservation agreement, an option or arras agreement, or another private purchase contract.
Many transactions involve a payment of approximately 10% of the purchase price, although the amount, refundability and consequences of withdrawal depend on the individual agreement. Contracts should therefore always be reviewed by the buyer's lawyer before signing.
The acquisition is generally completed by signing the Escritura Pública de Compraventa before a Spanish notary. Following completion and fulfilment of the relevant tax obligations, the new owner is registered with the Spanish Land Registry.
Estate agency and advisory fees
The fee structure depends on the transaction and on which party the property advisor represents.
Where Finest Selection is retained by the buyer, the scope and fees of our advisory services are agreed transparently in advance. Where fees are paid by the seller or another remuneration structure applies, the client is informed accordingly.
Can international buyers finance property in Mallorca?
International buyers can generally obtain mortgage financing through Spanish banks. Available financing depends on factors including tax residence, income and assets, creditworthiness, purchase price, bank valuation and the individual lending criteria of the bank.
For this reason, we avoid general statements about universally available loan-to-value ratios. Where required, we can introduce experienced banks and financing specialists.
Taxes and purchase costs in Mallorca
How much is Property Transfer Tax (ITP)?
Resale properties not subject to Spanish VAT are generally subject to Property Transfer Tax (ITP).
The standard progressive rates currently applicable in the Balearic Islands are:
Portion of purchase price ITP
Up to €400,000 8%
€400,000.01 – €600,000 9%
€600,000.01 – €1,000,000 10%
€1,000,000.01 – €2,000,000 12%
Above €2,000,000 13%
The rates are applied progressively to the respective portions of the purchase price. Special rates or reductions may apply in certain circumstances.
VAT and AJD on new-build properties
Transactions subject to Spanish VAT (IVA) follow a different tax regime. Certain new-build residential properties are generally subject to IVA, while different rules can apply to plots, commercial properties and other transactions.
Depending on the transaction, AJD – Actos Jurídicos Documentados (Stamp Duty) may also apply.
Other purchase costs
Buyers should also budget for notary and Land Registry fees, independent legal advice and, where applicable, technical due diligence, valuations and financing costs.
We recommend obtaining an individual calculation of anticipated taxes and purchase costs before proceeding.
Annual property taxes in Mallorca
IBI: The Impuesto sobre Bienes Inmuebles is an annual municipal property tax based primarily on the cadastral value and the tax rate established by the relevant municipality.
Non-resident taxation: Owners who are not tax resident in Spain may still have Spanish tax obligations arising from ownership of a Spanish property, even when it is used exclusively for private purposes.
Wealth Tax: Wealth taxation depends on tax residence, overall assets and current national and Balearic legislation. Particularly for high-value acquisitions, we recommend individual tax advice before purchasing.
Do I need a lawyer when buying property in Mallorca?
We recommend that every property acquisition in Mallorca is accompanied by an independent lawyer specialising in Spanish real estate law.
The lawyer can verify ownership, Land Registry and planning information, review contracts, identify existing charges and accompany the buyer through to completion. The lawyer can also assist international buyers in obtaining the required NIE – Número de Identidad de Extranjero.
Finest Selection can introduce independent lawyers and other specialists experienced in international property transactions in Mallorca.
After the purchase
Our involvement does not necessarily end at the notary. Where requested, we can introduce selected local specialists for property management, maintenance, architecture, renovation, interior design and other services.
Buying property in Mallorca with the right advice
A property in Mallorca is often far more than a financial investment. Location, micro-location, property quality, legal status, resale potential and whether the property genuinely suits the buyer's long-term requirements should be considered together. Since 2004, Finest Selection Real Estate has advised private buyers, entrepreneurs, family offices and investors on property decisions in Mallorca.
Our work is based on personal advice, discretion, local experience and access to a network extending beyond the publicly visible property market. Our objective is not to show as many properties as possible or to encourage a purchase, but to provide the information and clarity required to make a well-founded long-term decision.
Legal Notice
This guide is provided for general information only and does not constitute legal, tax or financial advice. Legislation, tax rates, exemptions and administrative interpretations may change.
Before acquiring property in Spain, we recommend obtaining independent legal and tax advice appropriate to the buyer, property and individual transaction.
You’ve Decided to Move to Mallorca? From finding a house to choosing a school and a moving company – where should you start?
Mallorca is not only a holiday paradise with friendly locals, breathtaking nature, and sunny beaches – the island also offers an ideal environment to start a new life permanently. Safety, top-quality schools, a wide range of leisure activities, and excellent healthcare make Mallorca an attractive place to live for families, couples, and singles.
Moving to Mallorca is a life-changing decision that requires careful planning and organization. We guide you through the key steps and provide comprehensive information to make your new start as stress-free as possible.
1. Is Mallorca a Good Place for Me and My Family to Live?
Beyond sun, beaches, and paella, Mallorca stands out for its modern infrastructure, high safety standards, and diverse leisure opportunities.
No matter what stage of life you and your family are in, those willing to take the leap and experience daily life beyond the vacation mode will find excellent conditions for a new home.
Moving to Mallorca with your family? Your children will have the opportunity to make friends from all over the world, grow up multilingual, and receive a very good education. Boredom is impossible – Mallorca offers countless possibilities for leisure, hobbies, and professional activities. Conducting international business? The island’s airport provides numerous direct flights to most European cities and now also to Canada, the USA, and the Emirates.
2. Can I Simply Move to Mallorca?
In principle: Yes.
However, depending on your nationality, different immigration and residency regulations apply. Your country’s consulate will provide detailed information and the necessary application forms before moving to Mallorca.
If you plan to move to Mallorca and live there permanently, you should register as a resident and obtain a NIE number (Número de Identificación de Extranjero). You will need this for contracts, bank accounts, administrative procedures, and property purchases.
The question of tax residency should also be clarified early with a tax advisor. Many expats also enlist the help of a local lawyer or a Gestoría to efficiently handle the required documents.
3. Where Should I Buy Property – and How Do I Find the Right Real Estate Agent?
The choice of location depends heavily on your personal needs:
Families with school-aged children should ideally live near suitable schools, as traffic can be challenging, especially in the high season.
Rural finca with views of the Tramuntana or modern villa by the sea – each setting has its pros and cons. An experienced local agent can advise you and help you make the right decision.
It is generally advisable not to leave the choice of agent to chance. Don’t search blindly online for a property; rely on a reputable, competent agent. This saves time and reduces the risk of mistakes during purchase.
4. Is It Expensive to Live in Mallorca?
Mallorca is not inherently expensive, but the cost of living depends on your lifestyle:
Daily shopping, local services, or gym memberships are often affordable.
Private schools, health insurance, and a luxury lifestyle (beach clubs, restaurants, boutiques) can significantly increase expenses.
5. How Do I Organize My Move?
It is recommended to plan your move with a reputable moving company. Many companies offer full door-to-door services, including packing, transport, customs clearance, and temporary storage.
Make sure to choose a company with experience in international moves and, ideally, references for moves to Mallorca.
6. Which School Is Right for My Children?
Mallorca offers three types of schools:
Public schools
Semi-private schools
Private international schools
The latter provide top-quality education, international diplomas, multilingual instruction, and cost between €1,000 and €1,600 per month. Most international schools are located in and around Palma as well as in the southwest of the island.
Schools usually offer informal visits to tour the facilities before enrolling your child. It is advisable to visit several schools, as offerings, quality, and location vary – and the choice of school can also influence the ideal property location. We can provide a list of relevant schools and their curricula. See complete list below.
Conclusion
Moving to Mallorca requires planning, organization, and the right contacts, but it is worth the effort. The island offers high quality of life, safety, and Mediterranean charm that many expats do not want to give up.
Feel free to contact us with your questions and requirements – we share our own decades of expat experience and can recommend competent contacts to help you achieve an optimal move to Mallorca.
International & Private Schools in Mallorca (Subject to Change)
Àgora Portals International School
Location: Portals Nous (Calvià)
Website: www.colegioagoraportals.com
International Baccalaureate (IB) and Spanish curriculum, multilingual instruction (English/Spanish/Catalan), focus on values, music, and sports
Baleares International College (BIC)
Location: Sa Porrassa (Calvià) & Sant Agustí (Palma)
Website: www.balearesint.net
British curriculum (Early Years to A-Level), international orientation
Queen’s College Mallorca
Location: La Bonanova (Palma de Mallorca)
Website: www.queenscollege.es
British curriculum, GCSE and A-Levels
Bellver International College
Location: La Bonanova (Palma de Mallorca)
Website: www.bellvercollege.com
British curriculum, Cambridge International Examinations
Escola Global International School
Location: Marratxí (near Palma)
Website: www.escola-global.com
Bilingual (English/Spanish), project-based learning, sustainable pedagogy
Lycée Français International de Palma
Location: Palma de Mallorca
Website: www.lfpalma.es
French curriculum, from preschool to Baccalauréat
Eurocampus Deutsche Schule Mallorca
Location: Palma de Mallorca
Website: www.dsmallorca.de
German curriculum (Thuringian model), bilingual (German/Spanish)
Green Valley International School Mallorca
Location: Son Puig (Palma de Mallorca)
Website: www.edu.greenvalleyschool.es
British curriculum & IB Diploma Programme
The Montessori School of Mallorca
Location: Santa Maria del Camí
Website: www.montessorimallorca.org
Montessori pedagogy (English/Spanish), individualized learning
King Richard III College
Location: Portals Nous (Calvià)
Website: www.kingrichardcollege.com
British curriculum, GCSE & A-Level
The Academy International School
Location: Marratxí (near Santa Maria)
Website: www.theacademyschool.com
British curriculum, nature-based educational elements
Rafa Nadal International School
Location: Manacor
Website: www.rnschool.org
British curriculum & IB Diploma, academic and sports excellence
Palma College
Location: Palma de Mallorca (city center)
Website: www.palmacollege.com
Sixth Form College (ages 16–19), A-Level
American International School of Mallorca
Location: Marratxí (Golf Son Termens)
Website: www.aismallorca.com
US curriculum, college-preparatory, English-language instruction
My School Es Pont
Location: Palma de Mallorca
Website: www.myschoolmallorca.com
Bilingual school (Spanish/English), focus on creativity and social skills
Country- & Tennis Clubs
Mallorca Country Club – Santa Ponsa (Calvià)
Exclusive sports and social club with tennis on three surfaces (grass, clay, hard court), padel courts, restaurant, wellness facilities, and premium-level amenities.
Website: mallorcacountryclub.es
Bendinat Urban Country Club – Bendinat (Calvià)
Modern “country club” in an urban setting with high-quality padel and tennis facilities, pool, and clubhouse near Palma.
Website: bendinatclub.com
Palma Sport & Tennis Club – Palma de Mallorca
Centrally located in Palma, with tennis courts, a wide range of sports, spa, and bistro—ideal for members with diverse interests.
Website: palmatennis.com
Rafa Nadal Tennis Academy – Manacor
World-famous tennis academy offering professional training, youth programs, and international tournaments.
Website: rnschool.org
Vila Tennis Palmanova – Palmanova (Calvià)
Modern tennis club with clay and hard courts, padel facilities, and training programs for children and adults.
Website: vilatennis.com
Last update 2026
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