Chapter

Buying a house in the Balearic Islands

§ 1The islands

The Balearic Islands are an archipelago in the western Mediterranean. Mallorca is the largest, with Palma as the regional capital, mountains and a long coastline. Ibiza is known for nightlife and quiet coves, and Menorca is calmer and flatter. This chapter belongs to the section on the basics of where to buy. It gives only figures we could verify and ranks no resort.

§ 2What the registry shows

The property registrars report that foreigners made up 32.27% of home purchases in the Balearic Islands in the second quarter of 2026, against 15.98% nationally. The average price was €4,311 per m² in the region, and the twelve-month average for Palma was €4,291 per m². The statistics institute reports an annual price rise of 13.7%. These are regional averages, and prices differ widely between islands and villages.

§ 3Balearic taxes

The regional tax page lists the resale transfer tax in brackets. The first bracket is 8% on the part of the value up to €400,000, with higher rates above, and there are reduced rates for habitual homes and young buyers. The costs section explains how the brackets work and what we could not read. Ask your notary to calculate it for your price.

§ 4Tourist lets

A decree-law of 2025 treats a tourist stay as the transfer of the whole dwelling for up to a month, with a stay beyond thirty nights no longer counted as tourist use. Fines run from up to up to 5,000 euros for minor infringements, 5,001 to 50,000 euros for serious ones and 50,001 to 500,000 euros for very serious ones. Read the section on renting and investing and ask a local lawyer.

§ 5Water and drought

Islands depend on limited water, and droughts have led to restrictions in recent years. Check the water source and cost, and the cooling and energy certificate. We did not read the regional drought rules, so ask the town hall. The location checks section explains wells and water.

§ 6Licences and title

A lawyer should verify the licence, the registry note and the cadastral record before any deposit. Rural houses and country homes need extra checks on use, extensions and pools. The legal process section and the property types section explain.

§ 7The three main islands

Mallorca covers Mallorca, the largest island.

Ibiza covers Ibiza and Menorca covers Menorca.

§ 8Who it may suit

It may suit buyers who want an island lifestyle, a strong foreign market and good flights, and who accept high prices and strict rental rules.

§ 9How to compare

Compare the same type of home across places and ask for registry data. The method chapter the essentials of best places explains how we use official data. The main points of affordable places covers budget.

Coast, village or city step by step covers setting. Inland Spain is in the section on inland Spain.

§ 10The mainland coasts

Costa Blanca for owners covers the Costa Blanca. Costa Cálida step by step covers the Costa Cálida.

Valencian Community step by step covers the Valencian Community. Property in Catalonia covers Catalonia.

§ 11The other regions

What Andalusia means covers Andalusia. Property in Costa del Sol covers the Costa del Sol.

Property in Canary Islands covers the Canary Islands.

Property in Madrid covers Madrid and property in Northern Spain northern Spain.

§ 12What we could not verify

We did not read the regional drought rules or the municipal tourist-let rules, and we found no town averages beyond the city of Palma.

§ 13Questions to put to the seller

Ask the seller or agent for the registry note, the cadastral reference, the latest property tax receipt, the energy certificate and the community certificate of debts. Ask about the water supply, the licence of rural buildings and any rental restriction. Put the questions in writing and keep the answers. A seller who cannot produce a basic document before a deposit is telling you something about the sale. The legal process section explains each document and who can supply it.

§ 14Costs beyond the price

Budget for the transfer tax, or VAT and stamp duty on a new home, then the notary, the registry, a lawyer and any bank or valuation costs. After the purchase come the annual property tax, community charges, insurance, utilities and maintenance. Prices are high, and the cost of works and deliveries on an island adds to the budget. The costs section explains each item without giving a single total, because the total depends on the price, the region and the type of home.

§ 15Visiting in more than one season

Visit in winter as well as summer, because many services close and the island changes completely. Go on a weekday and at a weekend, in the morning and at night, and talk to neighbours and local shopkeepers. A viewing arranged by an agent shows the best hour of the best day, so return unannounced if you can. Take photographs of the street, the access and the neighbouring buildings, and compare them with the plans.

§ 16Working with advisers

A lawyer who works for you, and not for the developer or the agent, should check the title, the licences and the charges. A surveyor can check the structure, and a tax adviser can explain your position as a resident or a non-resident. Choose a lawyer who knows island planning and rural land, because licences are the common problem. Ask each adviser for a written fee before they start, and keep the fee separate from any commission paid by a seller.

§ 17Deposits and timing

Reservation fees and deposits are common in Spain. Ask what each payment buys, whether it is refundable and under which conditions, and who holds the money. Ask the notary to calculate the bracketed tax on your price before you sign. Do not pay a large sum before the checks above are complete, and do not let an agent hurry you with a story of rival buyers. The legal process section explains the private contract, the deposit and the deed.

§ 18If you plan to let the home

Rental income is never certain, and the rules are layered: national, regional and municipal law, plus the statutes of the community. Balearic tourist-let fines are large, so read the decree-law before you count on income. Check what the registry and the community allow before you buy, and budget for periods without tenants. The section on renting and investing explains the layers and what we could not read.

§ 19Reading the figures on this page

The figures here come from official sources and describe averages for a region or a period. They do not describe the home in front of you. Use them to set expectations, then compare with recent sales in the exact street. We record the source of each figure in the list at the foot of the page, and we say where we could not read a rule, so that you know what to ask a professional.

General information only. This is not legal, tax or financial advice. Check your own situation with a qualified adviser.