Mortgages in Mallorca for property abroad: real cases from practice
Anonymised examples of how buyers financed their property in Mallorca. Equity often comes from a gift, an inheritance, the sale of a previous property or a mortgaged existing property in Germany.
How much do banks lend on Mallorca, and what remains as equity?
Mortgages for property abroad finance non-residents up to a fixed share of the bank or purchase value, depending on country and profile. The remainder plus acquisition costs is equity, which on Mallorca runs at 30 to 40 percent. On top comes the staggered Balearic transfer tax of 8 to 13 percent, which belongs in the equity requirement from the start.
Which sources of equity do the Mallorca case reports show?
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.
Anyone who sees Mallorca as a tax haven should note: buyers pay the staggered Balearic transfer tax of 8 to 13 percent on top of the purchase price.
From our practice
Property financing in Mallorca: The following case reports show, in anonymised form, how different situations in Mallorca were financed for non-residents. Creditworthiness, the property and the bank's loan-to-value are always decisive.
Prices, loan-to-value and conditions for the island: Mallorca mortgage for non-residents.
Practical case Mallorca: Penthouse with a sea view in Palma (Mallorca)
Securing financing with 30 % equity
Practical case Mallorca: Charming finca near Santanyí (Mallorca)
Modernisation planned in from the start
Practical case Mallorca: Modern apartment in Port d'Andratx (Mallorca)
Buying the holiday property with 40 % equity
Practical case Mallorca: Family house in Alcúdia (Mallorca)
When the sale of the previous property is part of the financing
Practical case Mallorca: New-build apartment in Sóller (Mallorca)
Step by step to a second home in the mountains
Practical case Mallorca: Exclusive villa in Port d'Andratx (Mallorca)
Preserving the asset structure instead of using all capital
Practical case Mallorca: Finca with guesthouse in Deià (Mallorca)
Two generations realise their dream together
Practical case Mallorca: Beachside apartment in Cala d'Or (Mallorca)
A parental gift sensibly used as equity
Practical case Mallorca: Historic townhouse in Sóller (Mallorca)
Inheritance as part of the equity strategy
Practical case Mallorca: New-build villa in Santa Ponsa (Mallorca)
Buying during the construction phase with well-considered financing planning
Practical case Mallorca: Penthouse in Portocolom (Mallorca)
Portfolio lending instead of selling securities
Practical case Mallorca: Villa in Campos (Mallorca)
Own labour in the renovation cleverly factored in
Practical case Mallorca: Exclusive finca near Es Trenc (Mallorca)
Family wealth deployed strategically for a premium property
Practical case Mallorca: Villa in Pollensa (Mallorca)
With an existing property in Germany as a solid foundation
Practical case Mallorca: Apartment in Cala Ratjada (Mallorca)
Retirement planning with foresight
Practical case Mallorca: Apartment in Porto Cristo (Mallorca)
The first property purchase abroad with careful preparation
Practical case Mallorca: Detached house in Llucmajor (Mallorca)
From holiday home to permanent residence
Frequently asked questions
Is there a mortgage for a holiday home abroad that avoids selling a securities portfolio?
Yes, the case reports include a securities-backed loan taken instead of selling the portfolio, for example the penthouse in Portocolom. Buyers on Mallorca tend not to liquidate wealth but to restructure it. Conditions depend on creditworthiness, loan-to-value and bank.
How does financing a property abroad work for non-residents?
Through a Spanish bank, non-residents obtain up to 70 per cent of the lower of the purchase price and the Tasación. The rest and the purchase costs come from equity; in Mallorca, the graduated ITP of 8 to 13 per cent is part of this from the start. In the case reports, equity ratios are between 30 and 40 per cent.
Which property finance experts assist German-speaking buyers in Mallorca?
Here at Perini Finance & Property, we assist German-speaking buyers in Mallorca; Siegfried Perini acts on behalf of the owner, Olga Nikushkina, operating under §34i GewO. During a free initial consultation, we’ll explain what’s feasible and which bank is best suited to your needs. On completion, you pay 1 % of the loan amount (excluding IVA), with no bank commission.
How much can non-residents borrow?
In Spain, banks finance non-residents up to a fixed share of the bank or purchase value depending on country and profile; the remainder plus acquisition costs is equity.
Where does the equity for a property in Mallorca often come from?
For non-residents, the bank finances a fixed proportion of the bank value or purchase price — the remainder and the purchase costs are covered by equity. In Mallorca, the graduated ITP of between 8 and 13 % is added on top. In the case reports, equity ratios range between 30 and 40 %, often derived from gifts, inheritances, the sale of the previous property or a mortgaged existing property in Germany.
A similar situation in Spain? Let's talk.
Every financing in Spain is an individual case. In a free initial consultation we will tell you honestly what is feasible and which bank fits. The initial consultation is free and without obligation; on completion you pay 1 % of the loan amount (no VAT) — no bank commission. What we charge.
Anonymised individual case, not a binding statement for other projects · Siegfried Perini under the licence of Olga Nikushkina · §34i GewO · no tax or legal advice · no financing commitment; conditions depend on creditworthiness, loan-to-value and bank
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Content by Siegfried Perini — local brand representative since 2019, active in real estate since 1992, entered in the German intermediary register (§ 11a GewO) as a person directly involved in brokerage and advice. Point of contact for German-speaking buyers in Spain and Portugal. Brokerage by Olga Nikushkina, mortgage credit intermediary under § 34i German Trade Regulation (GewO); in Portugal through a locally licensed intermediary.