I’ve finally made up my mind and started looking for a house in Mallorca. Sunshine, beaches, the Mediterranean… who could resist the allure of this dream island? However, turning this dream into a reality requires a lot of homework. I’m starting this thread today to share my experiences so far, and I welcome everyone to discuss and add their own insights!
The Dilemma of Choosing an Area
Mallorca isn’t huge, but it’s not small either, so choosing where to settle down is a happy problem. If you like buzz and convenience, the capital Palma and its surroundings are the top choice, with all the amenities you could need. If, when buying a house in Mallorca, you’re looking for tranquility and natural scenery, you might consider the northern mountainous areas, like Sóller or Deià, which are stunningly beautiful. The southeast is famous for its various beautiful Calas, making it very convenient for beach trips in the summer. Personally, I’m leaning towards the southwest, which is not far from Palma but is relatively quiet.
About Budget and Taxes
When it comes to buying a house, money is obviously a key topic. Property prices in Mallorca vary greatly, from apartments in the hundreds of thousands of euros to villas costing millions. Besides the property price itself, the biggest expense is taxes. I’ve created a simple table outlining the main taxes for resale properties; new builds are subject to IVA (VAT) instead.
| Tax/Fee Type | Applicable to | Rate |
|---|
| ITP | Resale properties | Progressive rates, typically 8%-11.5% |
| AJD | When taking out a mortgage | Approx. 1.2% - 1.5% |
| Notaría y Registro | Notary and property registration fees | Approx. 1%-2% of the price |
| Lawyer’s Fee | Hiring a lawyer | Approx. 1% of the price |
Note: The rates above are for reference only. The actual rates will depend on the laws in effect at the time of purchase.
Some “Pitfalls” During Viewings and the Process
When viewing properties, aside from the location and layout, there are a few things that are very important. First, check for any dampness or moisture issues, which is crucial in an island climate. Second, confirm the legality of the property. Especially for homes with pools, gardens, or extensions, you must verify that their construction is legally registered and that the property has a certificate of occupancy (cédula de habitabilidad). Whatever you do, don’t assume the real estate agent will handle everything. The safest approach is to hire your own independent lawyer to review all the documents for you.
The whole process is tedious, but whenever I think about having my own home on this beautiful island in the future, it all feels worthwhile. From viewing to signing, the process can take about 2-3 months if everything goes smoothly. I hope my sharing is helpful to you. If you also have experience or questions about buying a house in Mallorca, feel free to leave a comment and chat!
