Note
Buying property in Mallorca: what to check
Quick answer
Mallorca is the largest Balearic island, with the city of Palma, mountain villages, country fincas and many coastal resorts. Check the licence of rural homes, water and drought, the coastal law and the strict tourist-let rules, and ask your notary to calculate the bracketed resale tax.
Applies toBuyers considering a flat in Palma, a village house or a country finca in Mallorca.
On this page: 11 sections
§ 1The island
Mallorca is the largest of the Balearic Islands. Palma, the capital, has a port, an old town, a cathedral and the airport. The island also has a mountain range along the north-west coast, farming villages inland, country fincas and resort areas around the coast. This page belongs to the chapter on property in Balearic Islands.
§ 2The market
The registry reports that foreigners made up 32.27% of home purchases in the Balearic Islands in the second quarter of 2026. The average price was €4,311 per m² in the region and the twelve-month average for Palma was €4,291 per m². We found no island-level average, so we print none. Ask local agents for recent sales.
§ 3Taxes
The first bracket of the resale transfer tax is 8% on the part of the value up to €400,000, with higher brackets above and reduced rates for some buyers. Ask your notary to calculate it for your price. The costs section explains.
§ 4Palma flats
Flats are in communities. Ask for the statutes, accounts, minutes and reserve fund. The law requires a reserve fund of at least 10% of the last ordinary budget. Check noise, parking and the state of old buildings.
§ 5Fincas and rural land
A rural house depends on its licence and registry entry, the status of the land, the water and the access. Parts built without licence are common problems. A lawyer should verify the title and the town hall should state the planning status in writing. The property types section explains rural land.
§ 6Water and drought
Water is limited, and droughts have led to restrictions. Ask where the water comes from and what it costs, and whether wells are legal. The location checks section explains.
§ 7Coast and tourist lets
Coastal homes are subject to the coastal law. A decree-law of 2025 treats a stay beyond thirty nights as outside tourist use and sets fines from up to 5,000 euros up to 50,001 to 500,000 euros. Read the rules and ask a local lawyer.
§ 8Who it may suit
It may suit buyers who want a large island with a city, mountains and many coves. Buying in Ibiza covers Ibiza and buying in Menorca covers Menorca.
§ 9What we could not verify
We found no island average and did not read the municipal rules or the drought rules.
§ 10Questions to ask on site in this place
Ask about the water supply, the licence of rural buildings and any rental restriction. Ask the community administrator, if there is one, for the statutes, the last accounts and the minutes of the previous meetings. Visit in winter as well as summer, because many services close and the island changes completely. Write down the answers and compare them with the documents your lawyer receives from the registry and the town hall.
§ 11Before you pay a deposit in this place
Ask the notary to calculate the bracketed tax on your price before you sign. Have your lawyer check the title, the licences and the charges first, and keep the deposit small and refundable on conditions. Choose a lawyer who knows island planning and rural land, because licences are the common problem. The legal process section explains the contract and the deed.
FAQRelated questions
Is Palma a city or a resort?
Both. It is the regional capital with a port, an old town and an airport, and it is also a destination. Flats there are mostly in communities, so the building and the street decide the experience.
What is a finca?
A country house on rural land, often with an old stone building and a large plot. Rural land has strict rules on building and use, so the licence, the registry and the water supply need checking by a lawyer before any deposit.
Can I let a home to tourists?
Only inside tight rules. A 2025 decree-law governs tourist stays, requires registration and sets penalties up to a very high ceiling. Study it and consult a local lawyer before planning on rental income.
Sources
- Boletín Oficial del Estado: Decreto-ley 4/2025 de las Illes Balears (BOE-A-2025-14462) (official source, opens in a new window), Tourist stays in dwellings; sanctions; text read to article fiveLast checked 18 October 2026
- Colegio de Registradores: Estadística Registral Inmobiliaria, 2T 2026 (official source, opens in a new window), Sales, foreign buyers, price per m², mortgagesLast checked 17 October 2026
- Agència Tributària de les Illes Balears: Impuesto sobre transmisiones patrimoniales: tipos de gravamen (official source, opens in a new window), General scale and reduced ratesLast checked 17 October 2026
- Boletín Oficial del Estado: Ley de Propiedad Horizontal (Ley 49/1960, BOE-A-1960-10906) (official source, opens in a new window), Arts. 7, 9, 10, 13, 16 and 17 (consolidated text of 3 October 2026)Last checked 26 October 2026
- Boletín Oficial del Estado: Ley 22/1988 de Costas (BOE-A-1988-18762) (official source, opens in a new window), Arts. 7, 8, 12 to 15, 23 to 28 and 13 bis; text read to article 44, transitional provisions not readLast checked 18 October 2026
General information only. This is not legal, tax or financial advice. Check your own situation with a qualified adviser.