The most popular location for foreign buyers in Spain — and the reason most people searching mortgage Mallorca start with an independent Mallorca mortgage consultancy rather than a single bank. Palma, Port Andratx, Santa Ponsa, Son Vida, Alcúdia. ITP 8%, ETV licence for tourist letting. Wealth tax Mallorca: Balearics allowance €3m.
Balearics, tiered by price: 8% up to €400,000, 9% up to €600,000, 10% up to €1m, 12% up to €2m, 13% above — dearer than Andalusia (7%), cheaper than Catalonia (10%).
Up to 70% of the lower of purchase price and tasación — the large Spanish institutions; for premium purchases from €1m private banks.
Only for short-term tourist letting (under 30 days); long-term letting from 1 month needs none. A 2018 licence freeze makes existing ETV licences valuable on resale.
On Mallorca the progressive ITP of the Balearics applies: from 8 % and tiered up to 13 % in the higher price bands. For a property up to around €400,000 the 8 % entry rate applies — at €400,000 that is about €32,000 of ITP; above it the tiers rise. As an offset, the Balearics grant an increased wealth-tax allowance of €3m per person, which makes Mallorca attractive to wealthier buyers. The ITP is the largest single item; budget around 11 to 13 % in total costs. Important for financing: banks finance the purchase price, not the incidental costs, and lend against the lower of purchase price and tasación — you cover the ITP from equity. Palma airport (PMI) makes the island accessible year-round. As of 07/2026.
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.
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.
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.
Balearics ITP (property transfer tax) tiered by price: 8% up to €400,000, 9% up to €600,000, 10% up to €1m, 12% up to €2m, 13% above. Catalonia has applied a similar tiered 10–13% band since Decret llei 5/2025. Wealth-tax allowance €3m per person — very attractive by EU standards.
Tourist letting only with an ETV licence. Since 2018 a licence freeze in many municipalities. With a licence, tourist letting generally outperforms long-term letting. Long-term letting permitted without a licence.
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.
Concrete sample calculations for typical foreign buyers — as a guide for your own plan.
| Item | Amount |
|---|---|
| Equity | €175,000 (39%) |
| Mortgage | €275,000 (61%) |
| Purchase costs (~11%) | ~€49,500 (ITP tiered, avg. 8.1%) |
| Loan-to-value | 61% LTV |
| Example payment (20 yrs, 3.2%) | ~€1,560/month |
| Bank type | Major 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.
| Item | Amount |
|---|---|
| Equity | €900,000 (50%) |
| Mortgage | €900,000 (50%) |
| Purchase costs (~15%) | ~€276,000 (ITP tiered, avg. 10.3%) |
| Loan-to-value | 50% LTV (premium, conservative) |
| Example payment (20 yrs, 3.2%) | ~€4,965/month |
| Bank type | Private bank · wealth management |
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
Pre-filled with typical values for this region — adjust and calculate.
Guide value without guarantee. Spain: max. 70%, Portugal: max. 80% loan-to-value for non-residents. Purchase costs = ITP/IMT + notary + land registry + lawyer + NIE/NIF. Total outlay = equity + purchase costs + all payments over the term. For a binding offer, contact us.
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
The complete breakdown with your exact figures — loan, equity required, total interest — straight to your inbox.
If the property is on Mallorca, Balearic rules apply — the same rules as on Ibiza and Menorca. Living in Germany does not change that. A paid-off property in Mallorca does not have to be sold to free up capital — it can be mortgaged instead.
For inheritance, the rules of the autonomous community holding the highest value of the Spanish estate apply. With a single Spanish property that is simply its region. The relief must be claimed within the filing deadline — miss it and it becomes contentious.
How far a Spanish bank will go on an unencumbered property, what changes with the owner's age, and what the released money may be used for is set out in full under releasing capital from a Spanish property.
A gift of the released money to a child is taxed in Germany, not in Spain — see inheritance and gift tax in Spain. This is not tax advice; Inheritance tax, groups I and II (parents, children, spouses). Autonomous tax law changes; review quarterly.
Planning a purchase on Mallorca? A free initial consultation in English — also German, French, Dutch, Spanish, Russian. I review your situation and find the right bank in Spain.
Monthly instalment, total cost and equity requirement for your exact figures.
Anonymised examples of how buyers financed their property in Mallorca.