Buying property à Majorque with a dedicated expert

Property purchase prices in Mallorca vary significantly by area, reflecting each zone's character, amenities, and international demand:

• Palma de Mallorca (capital): The island's most liquid market. Average prices range from approximately €3,000–€4,500/m² in central locations, rising to €5,429/m² on average across the city as of April 2025 (source: Investropa, 2025). Palma ranks as Spain's fourth most expensive residential market. The Old Town (Casc Antic) commands premium prices for historic palaces and renovated apartments. Santa Catalina is a vibrant, up-and-coming neighbourhood with apartment prices typically 15–26% lower than the Old Town (source: Investropa, 2025). Son Vida is Palma's most exclusive residential enclave, with luxury villas and golf course access.
• Southwest Mallorca (Andratx, Port d'Andratx, Calvià, Bendinat, Portals Nous): The most expensive zone on the island. Andratx holds the highest average price per square metre, with apartments averaging approximately €7,411/m² and houses approximately €8,923/m² (source: Mallorca Property Prices 2025). Calvià apartments start from around €400,000 EUR, with luxury villas exceeding €5,000,000 EUR.
• Sóller and the Tramuntana: A prestigious, scenically dramatic area. Apartments start from around €350,000 EUR; houses and fincas from €700,000 EUR to €3,000,000 EUR (source: Mallorca Property Prices 2025). Purchase prices are high relative to the area's rental potential.
• North and Northeast (Pollença, Alcúdia, Artà): More accessible price points, popular with families and buyers seeking a quieter lifestyle. Townhouses in Pollença can be found from approximately €300,000 EUR.
• South and Southeast (Ses Salines, Santanyí, Felanitx): Growing in popularity. In Ses Salines, apartments average approximately €3,073/m² and houses approximately €5,576/m² (source: Mallorca Property Prices 2025).
• Rural interior (Alaró, Sineu, Petra): The most affordable areas, with prices generally below the island average. Attractive for buyers seeking traditional fincas or village houses.

1. Property search and viewings: Identify suitable properties through local agents, online portals (Idealista, Fotocasa), or buyer's agents. Arrange in-person viewings.
2. Obtain your NIE and open a Spanish bank account: These administrative steps should be initiated as early as possible, as they can take several weeks.
3. Due diligence: Instruct an independent Spanish lawyer (abogado) to carry out legal checks — reviewing the Nota Simple, verifying planning permissions, checking for debts or encumbrances, and confirming the property's legal status.
4. Reservation contract (Contrato de Reserva): A short-form agreement that takes the property off the market. A reservation deposit of typically €6,000–€10,000 EUR is paid at this stage.
5. Private purchase contract — Arras (Contrato de Arras Penitenciales): The most common form of preliminary contract in Spain. A deposit of typically 10% of the purchase price is paid. If the buyer withdraws, the deposit is forfeited; if the seller withdraws, they must return double the deposit amount.
6. Mortgage application (if applicable): Submit documentation to the lender; a property valuation will be commissioned by the bank.
7. Final deed (Escritura Pública de Compraventa): Signed before a Spanish notary (notario). The remaining balance is paid, and legal ownership transfers to the buyer. The notary is required by law to notify the Land Registry within 24 hours.
8. Payment of taxes: ITP or IVA/AJD must be paid to the Balearic tax authority within 30 days of signing the deed.
9. Land Registry inscription: The property is formally registered in the buyer's name.
10. Utility transfers and ongoing obligations: Transfer utility contracts, register for IBI (annual property tax), and notify relevant authorities of the change of ownership.

The full process from reservation to notary signing typically takes 30 to 90 days, depending on financing arrangements and administrative timescales (source: mallorca.com, 2026).

Non-resident buyers can access mortgage financing in Mallorca, though on different terms than Spanish residents:

• Loan-to-Value (LTV): Spanish banks typically lend non-residents up to 60–70% of the property's appraised value, meaning a minimum deposit of 30–40% is required (source: Heritage Homes Mallorca, 2026; HomeHunts, 2024). This is lower than the up to 80% LTV available to residents.
• Interest rates: As of early 2026, rates generally range from the low 3% to mid 4%, depending on the mortgage type (fixed or variable), residency status, and property value (source: Heritage Homes Mallorca, 2026). Variable-rate mortgages are indexed to the Euribor.
• Eligible lenders: Both Spanish banks and some international lenders offer mortgages to non-residents. Some European buyers may also explore financing secured against property in their home country.
• Key documents required by lenders: Passport, NIE, proof of income (last 2–3 years of tax returns or payslips), bank statements, and details of existing assets and liabilities.
• Property valuation: The bank will commission an independent valuation (tasación) of the property; the mortgage offer will be based on the lower of the purchase price or the appraised value.
• Pre-approval: Obtaining mortgage pre-approval before making an offer significantly strengthens your negotiating position and speeds up the process.
• Cash purchases: A significant proportion of foreign buyers in Mallorca purchase without a mortgage. Cash buyers benefit from a faster, simpler process and stronger negotiating leverage.
• Additional costs: Mortgage arrangement fees, notary costs for the mortgage deed, and the bank's valuation fee should be factored into the overall budget.

Several professionals are involved in a Mallorca property purchase, each with their own fees:

• Real estate agent commission: In Mallorca, agency commission is typically paid by the seller and ranges from 3% to 6% of the final sale price (source: Reiderstad Invest; Balearic Properties, 2024). Some agencies charge between 3% and 5% depending on the property and scope of service. The commission is often negotiable, particularly for higher-value transactions. The agent's service typically includes property search, viewings, market appraisal, negotiation support, and coordination with notary and lawyers.
• Independent lawyer (Abogado): Strongly recommended for all foreign buyers. Legal fees are generally around 1% of the purchase price (plus 21% VAT), often with a minimum charge. The lawyer conducts due diligence, reviews contracts, liaises with the notary, and handles tax filings on your behalf.
• Notary fees: Regulated by Spanish law and based on the transaction value; typically €1,000–€2,500 EUR for a standard residential purchase. The majority of notary fees are borne by the buyer.
• Land Registry fees: Approximately €400–€1,200 EUR, depending on the property value.
• Mortgage-related fees (if applicable): Bank arrangement fees, valuation (tasación) costs of approximately €300–€600 EUR, and notary fees for the mortgage deed.
• Buyer's agent / search consultant: Some international buyers engage a dedicated buyer's agent who works exclusively in their interest. Fees vary but are typically a fixed fee or a percentage of the purchase price agreed in advance.

As a general rule, buyers should budget for 10–15% of the purchase price to cover all taxes, fees, and professional costs combined.