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.
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) 8% — higher than Andalusia (7%), lower than Catalonia (10%). 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.
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
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.
Financing in the region.
View page → RegionFinancing in the region.
View page → RegionFinancing in the region.
View page → RegionFinancing in the region.
View page → RegionFinancing in the region.
View page → RegionFinancing in the region.
View page → RegionFinancing in the region.
View page → RegionFinancing in the region.
View page → RegionFinancing in the region.
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Anonymised examples of how buyers financed their property in Mallorca.