Perini Finance & Property §34i GewO · Mortgages in Spain & Portugal
Region focus · Spain · Balearics · §34i

Mallorca — mortgage for non-residents

The most popular location for foreign buyers in Spain. Palma, Port Andratx, Santa Ponsa, Son Vida, Alcúdia. ITP 8%, ETV licence for tourist letting. Balearics wealth-tax allowance €3m.

Market analysis

The Mallorca market by area

South-west · premium

Port Andratx, Santa Ponsa, Son Vida

Mallorca's top prices. Port Andratx — an exclusive harbour setting. Santa Ponsa — an established foreign market with well-kept residential complexes. Son Vida — premium villas, golf, a quiet location above Palma. Price per square metre: €5,000–12,000.

Palma · city

Old town, Santa Catalina, El Terreno

Urban Mallorca. The old town with historic apartments, Santa Catalina an up-and-coming hipster quarter, El Terreno a hillside setting with sea views. Habitable year-round, easy to let.

North-east

Alcúdia, Pollença, Cala San Vicente

Quieter family destinations. Pollença a historic mountain town. Alcúdia with beach and harbour. Cheaper than the south-west, with good rental demand from German and British families.

Tax

ITP 8%, allowance €3m

Balearics ITP (property transfer tax) 8% — higher than Andalusia (7%), lower than Catalonia (10%). Wealth-tax allowance €3m per person — very attractive by EU standards.

Letting

ETV licence required (tourist)

Tourist letting only with an ETV licence. Since 2018 a licence freeze in many municipalities. With a licence: 4–7% gross yield possible. Long-term letting permitted without a licence.

Loan-to-value

Up to 70% LTV

Spanish banks: 70% LTV for non-residents. For very high-priced properties (premium Andratx, Son Vida) private banks with better terms come into play. Term up to 25 years.

Example financings

Two realistic scenarios

Concrete sample calculations for typical foreign buyers — as a guide for your own plan.

Mallorca · Santa Ponsa

Apartment · €450,000

  • Equity€175,000 (39%)
  • Mortgage€275,000 (61%)
  • Purchase costs (~11%)~€49,500 (ITP 8% Balearics)
  • Loan-to-value61% LTV
  • Example payment (20 yrs, 3.2%)~€1,560/month
  • Bank typeMajor Spanish bank · Mallorca branch

Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.

Mallorca · Port Andratx premium

Villa · €1,800,000

  • Equity€900,000 (50%)
  • Mortgage€900,000 (50%)
  • Purchase costs (~13%)~€234,000 (ITP 8% Balearics)
  • Loan-to-value50% LTV (premium, conservative)
  • Example payment (20 yrs, 3.2%)~€4,965/month
  • Bank typePrivate bank · wealth management

Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.

Mortgage calculator

Calculate your costs quickly

Pre-filled with typical values for this region — adjust and calculate.

FAQ

Frequently asked questions about Mallorca

How high is ITP property transfer tax in Mallorca?
8% (Balearics). That makes it dearer than Andalusia (7%), but cheaper than Catalonia (10%). There is no graduated ITP in the Balearics — a flat rate.
Do I need an ETV licence for my Mallorca apartment?
Only for short-term tourist letting (bookings under 30 days). For long-term letting (from 1 month) no licence is needed. Since 2018 an ETV licence freeze in many municipalities — existing licences are valuable on resale.
Which banks finance in Mallorca?
CaixaBank, Banco Sabadell, BBVA, Santander, Bankinter with well-established non-resident departments. For premium purchases (from €1m) private banks such as Banco Mediolanum, Andbank, Banca March.
How high is wealth tax in Mallorca?
Balearics allowance €3m per person. Above that, graduated 0.28–3.45%. Mortgages are deducted from wealth — a €1m mortgage on a €4m villa reduces the taxable wealth to €3m.
What does a standard Mallorca purchase cost in total?
Purchase price + approx. 11–13% costs (ITP 8% + notary + land registry + lawyer + NIE). On a €500,000 purchase price: approx. €555,000–565,000 total investment. Mortgage costs may be added.
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Legal notice

Author & regulatory separation. Content author: Siegfried Perini. Mortgage brokerage in Spain and Portugal is carried out under the §34i permit of Olga Nikushkina (BAFA-notified). This page does not replace legal or tax advice.