Mortgages in Mallorca — real cases from practice

Across the 17 financings documented here, purchase prices ranged from €585,000 to €5,980,000. Every figure appears in the individual case report.

Where does the equity come from when buying on Mallorca?

Rarely from a savings account alone. The reports feature a gift from parents, an inheritance and the sale of a previous property. They also include a mortgage raised on an existing German property and a securities-backed loan taken instead of selling the portfolio. Equity ratios sit between 30 and 40 percent. Buyers on Mallorca therefore tend not to liquidate wealth but to restructure it. That is the difference from an ordinary home loan. The instalment is not the obstacle. The obstacle is which funds can be released without a tax charge and without a sale. The Balearic transfer tax of 8 to 13 percent, staggered by purchase price, belongs in the equity requirement from the start. Documented purchase prices run from 585,000 to 5,980,000 euros and therefore cover the upper segment as well. Over long terms a younger co-borrower eases the instalment; that co-borrower goes on the title deed with a share of at least 10 percent.