Buy an apartament in Mallorca

Why buy an apartament in Mallorca?

Mallorca is the pearl of the Mediterranean and, with over 300 days of sunshine a year, offers perfect conditions for sun lovers. Future islanders can also look forward to a variety of landscapes. From dreamy beaches to picturesque mountain villages - Mallorca has the right region for every taste. The daily flight connections also make the island easily accessible. There are also good transport links within the island, which makes life easier for commuters in particular.

Property on Mallorca is also a stable investment. The island remains in constant demand, which keeps prices stable or even allows them to rise. Many buyers use their apartament in Mallorca not only privately, but also for holiday rentals. With a clever strategy, an attractive return can be achieved from a Mallorca apartament, especially in the high season.

But buying an apartament in Mallorca is not only a sensible investment in financial terms. An apartament in Mallorca also offers the opportunity to escape from everyday life at any time - it is a step towards a relaxed, Mediterranean lifestyle.

Popular regions for buying an apartment in Mallorca

Mallorca has an impressive variety of different regions to offer. Each of them has its own character and advantages. Whether you are looking for urban flair, a flat on the seafront or tranquillity close to nature: There is an apartament on the island to suit every taste and budget.

Palma de Mallorca

The capital of Mallorca combines modern city life with typical Mallorcan charm. Palma de Mallorca offers prospective property buyers a beautiful old town, culinary diversity and an excellent infrastructure. The districts of Santa Catalina and Portixol are particularly popular. The former is home to Palma's oldest food market. This makes the neighbourhood a culinary meeting point. Portixol emerged from a former fishing colony and is now a trendy residential area with sea views. Anyone looking to buy a flat in Palma de Mallorca will find stylish city flats, modern flats in new developments and lofts with roof terraces. These flats often have sea views or offer a great view of the cathedral.

South-west Mallorca: Port d' Andratx, Santa Ponsa, Bendinat

The south-west of Mallorca is probably the most exclusive area on the island. In Port d' Andratx, you can enjoy a picturesque marina atmosphere while being surrounded by fine dining and luxurious penthouses. Santa Ponsa scores with family-friendly beaches, great golf courses and international schools. In Bendinat you will find elegant apartment complexes close to the golf course and you can enjoy fantastic sea views. The exclusive offers in the southwest of Mallorca also reflect the property market. Luxurious apartaments with spacious terraces, penthouses with sea views and modern flats in exclusive luxury complexes dominate here.

North-east Mallorca: Artá, Cala Ratjada

In the north-east of the island you will find unspoilt nature, picturesque bays and traditional villages. Artá offers a charming old town, an authentic weekly market and panoramic views of the island's mountains. While Cala Ratjada combines lively coastal life with quiet residential areas. The north-east of Mallorca is therefore ideal for anyone who wants to enjoy Mallorcan flair away from mass tourism. In this region, you will often find charming flats in small residential complexes, renovated flats in traditional townhouses and flats close to the beach with balconies or communal gardens.

The centre of Mallorca: Inca, Sineu

The centre of the island is an attractive alternative for buyers who want to pay a little more attention to the price. Inca is the third largest town in Mallorca and is particularly well known for its leather industry. The town offers a good infrastructure and regular train connections to Palma. Sineu is a traditional village with one of the oldest weekly markets on the island. The interior of the island is dominated by simple but generously proportioned apartaments in smaller residential buildings, some with balconies or patios. There are also many modernised flats in old buildings in a village setting at attractive prices.

Costs for an apartament in Mallorca

Buying an apartament in Mallorca is a worthwhile, but also cost-intensive investment. It is important to know the exact prices and additional expenses in order to create a realistic budget plan. The following section takes a closer look at average prices by region, additional costs and financing options.

Average prices by region

Prices for apartaments in Mallorca vary considerably depending on location, size and facilities. Apartaments in central or exclusive areas are particularly in demand.

• Palma de Mallorca: The island's capital offers a mixture of historical charm and modern lifestyle. Apartaments in the old town or in trendy neighbourhoods such as Santa Catalina and Portixol cost between 4,000 and 7,000 euros per square metre. Flats with sea views or in top locations such as the old town can also be considerably more expensive.
• South-west Mallorca: Regions such as Andratx, Santa Ponsa and Puerto Portals are among the most expensive on the island. Here, the price per square metre is often between 5,000 and 10,000 euros, especially for luxury apartaments with direct access to the sea or marina.
• North and east: These regions, including places like Pollença, Artà or Cala Ratjada, are popular with buyers looking for peace and nature. Prices here are somewhat more moderate and range between 3,000 and 5,000 euros per square metre.
• Rural island centre: Apartaments in places like Alaró or Sineu are often more attractively priced and offer an authentic Mallorcan atmosphere. They are ideal for buyers who want a retreat away from the tourist centres.

However, the final costs also depend on individual factors such as the construction quality, the condition of the property and availability. A detailed market comparison is therefore essential.

Additional costs: What you should also plan for

In addition to the actual purchase price, additional costs of around 10 to 15% of the purchase price are incurred in Mallorca. The most important items include:

• Real estate transfer tax (Impuesto de Transmisiones Patrimoniales, ITP): This is between 8 and 13% depending on the purchase price.
• Notary fees: The fees for notarisation usually amount to 0.5 to 1 % of the purchase price.
• Land register fees: Further costs of around 0.5 % are incurred for registering the property in the land register.
• Estate agent commission: Estate agents in Mallorca usually charge 5 to 6 % of the purchase price, plus VAT.
• Additional fees: These include costs for the translation and notarisation of documents as well as any legal advice.

It is advisable to include these additional costs in your budget planning at an early stage to avoid financial surprises.

Financing options for buyers

Many buyers finance the purchase of an apartament in Mallorca partly through loans. Spanish banks also offer attractive mortgages for foreign buyers, often with a loan-to-value ratio of up to 70% of the property value. The conditions vary, but interest rates are usually between 2 and 3%, depending on creditworthiness and term.

For buyers who prefer financing through their home bank, an additional land charge can be registered on an existing property in their home country. This option allows the financing to be processed in a familiar environment.

An important aspect of financing an apartament in Mallorca is hedging the exchange rate risk. As the repayment is made in euros, buyers earning in a different currency should take possible exchange rate fluctuations into account. Professional advice from a financial expert can be of great benefit here in order to find the optimum solution.

Buying an apartament in Mallorca: legal aspects

Buying property in Mallorca is well structured, but requires thorough preparation and careful planning. The process usually begins with the reservation of the desired property, followed by the signing of a preliminary contract. This preliminary contract regulates the most important conditions of the purchase and is later finalised by the notarisation of the final purchase contract. It is important to think through each step carefully and provide professional support.

The necessary documents and authorisations are an essential part of the purchase process. These include the extract from the land register, which clarifies the ownership structure and possible encumbrances, as well as the energy efficiency certificate for the property. If the apartament is to be used for holiday rentals, a corresponding licence is also required, which is subject to different requirements depending on the region of Mallorca.

When buying a property in Mallorca, buyers must also consider their tax obligations. In addition to the land transfer tax, which makes up a significant part of the incidental purchase costs, there are also ongoing costs such as property tax and fees for rubbish collection. These should be taken into account in the financial planning so that no unexpected expenses are overlooked.

For foreign buyers, especially those from Germany, buying an apartament in Mallorca is relatively straightforward. Nevertheless, it is advisable to consult an experienced lawyer or estate agent to overcome legal and bureaucratic challenges. An expert can ensure that all documents are correct, the purchase process runs smoothly and potential risks are avoided.

Tips for choosing the right apartament in Mallorca

Buying an apartament in Mallorca should be carefully considered. To make the right decision, the following points are particularly important:

• Location: Think carefully about which location on Mallorca suits your lifestyle. Do you prefer to be close to the city, in a quiet area surrounded by greenery or do you prefer direct access to the beach? The location not only influences your quality of life, but also the value of the property.
• Features: Pay attention to criteria such as terrace, balcony, pool, lift, air conditioning, parking space or underground car park. Energy-efficient construction and modern building technology also play an increasingly important role.
• Condition and year of construction: Do you want a new-build flat that is ready to move into or do you not mind a pending renovation? Old buildings often offer charm, but can cause additional costs.
• Community costs: Apartments in well-kept residential complexes with a pool or garden incur running costs. Check whether the value for money of the so-called ‘comunidad’ is right.
• Future prospects: Think about the medium-term use - as a holiday home, permanent residence or for renting out? The orientation can strongly influence the choice. If you decide to rent it out, you must bear in mind that certain licences are required. Especially for tourist lettings. Long-term rentals are subject to less stringent requirements and offer a stable income.

Why a real estate agent is crucial

An experienced estate agent not only knows the local market, but also protects you from making expensive mistakes. For foreign buyers in particular, it is essential to have a reliable partner at your side who can competently navigate the legal, linguistic and organisational hurdles.

Our tip: Put your trust in KENSINGTON Finest Properties International in Artà.
As an established real estate agent with in-depth market knowledge in the north-east of Mallorca, we provide you with comprehensive support - from the first property viewing to the notarised purchase transaction. We listen, understand your wishes and guide you professionally through the entire buying process.

KENSINGTON Artá stands for transparent advice, exclusive properties and customised solutions - so that you can find your dream flat safely and stress-free.

Contact us now