Buy properties Mallorca

Why buy property in Mallorca?

Mallorca has become one of the most sought-after property locations in Europe. With its breathtaking nature, mild climate and excellent infrastructure, the sunny island attracts investors and holidaymakers alike. But what makes buying a property in Mallorca so special?

Attractive location

Mallorca offers a unique combination of nature and urbanity. Fantastic beaches, picturesque villages and lively cities such as Palma make the island attractive for a variety of lifestyles. Thanks to the good flight connections from numerous European cities, Mallorca is not only popular as a holiday destination, but also as a second home. Whether directly by the sea or in the mountains - on Mallorca you will find properties to suit every taste. This diversity makes the location particularly attractive for property buyers.

Investment security

Mallorca has proven to be a stable property market over the years. The demand for high-quality property on the island remains consistently high, which offers investors long-term security. In addition, property law in Mallorca is highly regulated, which is an advantage for buyers from abroad. The island's growing popularity as a destination for international investors ensures healthy market dynamics and stable property values.

Stable value

The value of properties on Mallorca has risen steadily in recent years. Thanks to the limited availability of building plots and the high demand, properties on the island remain stable in value and offer attractive potential for appreciation. Properties in prime locations such as Palma, Port Andratx or the north-east of the island are particularly known for their long-term appreciation. Investing in a property on Mallorca not only protects your capital, but also allows you to benefit from attractive returns.

The different types of properties on Mallorca

The property market in Mallorca offers a variety of different property types, providing both investors and private buyers with a wide range of options. From luxurious villas to charming fincas - there is a property to suit every taste and budget. Here is an overview of the different types of property Mallorca has to offer:

Villas

Villas on Mallorca are synonymous with exclusivity and luxury. These properties are often located in the most sought-after locations on the island, such as in the hills of Son Vida, Port Andratx or directly on the coast. Villas generally offer spacious living areas, extensive gardens and are often located on the seafront. A breathtaking sea view is therefore guaranteed. Many have amenities such as private pools, modern interior design and high-quality materials. Whether as a holiday residence or a permanent home, a stunning villa on Mallorca is not only a place to relax, but also a long-term investment.

Apartments

For those who want to live in urban areas or in places popular with tourists, apartaments are an ideal choice. In Palma de Mallorca in particular, there is a large selection of modern and stylish apartaments that are suitable both for personal use and as holiday homes. Many apartaments offer attractive views of the Mediterranean or are located in central locations, close to restaurants, cafés and cultural facilities. In addition, apartaments are often easy to maintain and have communal facilities such as pools or fitness areas, which makes them particularly interesting for holidaymakers and investors.

Fincas

A finca on Mallorca is the epitome of Mediterranean charm and rustic luxury. These traditional country houses, which are often located on spacious plots of land inland or in the mountains of the island, offer a peaceful and private environment. Fincas have large gardens, orchards and often also agricultural land. The architecture often reflects the typical Mallorcan architectural style, with natural stone façades, terracotta floors and wooden beams. If you want to enjoy authentic island life, a finca is the perfect home or idyllic holiday residence.

Studios

Studios are particularly popular with younger buyers and holidaymakers looking for a smaller, low-maintenance property. These compact residential units usually offer open-plan living spaces that combine living, sleeping and kitchen areas. Studios are mainly found in urban or tourist areas of Mallorca and are ideal as holiday homes or for short-term rentals. Thanks to their smaller size and the associated lower purchase costs, studios are also an interesting option for newcomers to the island's property market.

Penthouses

Penthouses are among the most sought-after properties on Mallorca, especially in urban areas such as Palma or popular tourist locations such as Port Andratx. These exclusive flats not only offer luxurious living comfort, but also spectacular views over the city or the sea. Penthouses are characterised by spacious roof terraces, which are often equipped with private pools, jacuzzis or outdoor kitchens. They offer a high degree of privacy and are usually offered in modern apartment complexes with additional amenities such as a concierge service, underground car parks or fitness areas. Thanks to their exclusive location and high-quality furnishings, penthouses in Mallorca are an excellent investment that offer a unique lifestyle both as a holiday property and as a permanent residence.

Popular locations for properties in Mallorca

Mallorca is known for its variety of attractive locations, offering something for every type of property and lifestyle. Whether you are looking for a central flat in Palma, a luxury villa in Andratx or a traditional finca in Artá, Mallorca offers a wide selection of properties.

Palma de Mallorca

Palma de Mallorca, the capital of the island, is one of the most sought-after property markets in Mallorca. The city combines historical flair with a modern lifestyle. Palma offers a mix of exclusive apartaments, penthouses with sea views and modern city flats in the old town. Palma's charm lies in its diversity: narrow streets, lively markets, first-class restaurants and the impressive harbour make the city an ideal place for people who want to enjoy urban life in Mallorca. Thanks to its proximity to the airport and excellent infrastructure, Palma is particularly attractive for international buyers.

Cala Ratjada

Cala Ratjada, located in the north-east of Mallorca, is known for its picturesque beaches and lively nightlife. The town attracts both holidaymakers and property buyers who appreciate the combination of nature and leisure activities. Modern flats and houses with views of the sea or the nearby bays are particularly sought-after here. Cala Ratjada offers an excellent quality of life with many amenities such as restaurants, bars and shopping facilities. The quiet location, away from the larger tourist centres, makes it a popular place for second homes.

Santa Ponsa

Santa Ponsa on the southwest coast of Mallorca is a popular location for the purchase of luxury properties. The area is particularly popular with international buyers and golf enthusiasts as it is close to several first-class golf courses. Santa Ponsa offers a selection of exclusive villas and modern apartaments, often with sea views and access to private marinas. The infrastructure is excellent and the proximity to Palma and the international airport make Santa Ponsa an ideal location for people looking for a luxurious and well-connected property in Mallorca.

Artá

Artá, in the north-east of the island, impresses with its authenticity and charm. This historic town offers a traditional Mallorcan lifestyle, away from the tourist hotspots. Fincas and country houses in the Artá area are particularly popular with buyers looking for peace and nature. The proximity to unspoilt beaches and nature reserves makes Artá a perfect location for nature lovers. The picturesque town centre with its narrow streets and markets adds to the charm of this region. Artá is the ideal location for buyers who value tradition and a relaxed life in the countryside.

Legal aspects when you buy a property in Mallorca

Buying a property in Mallorca requires a basic understanding of the legal framework. To ensure that the purchase goes smoothly and there are no nasty surprises, buyers should inform themselves in advance about the necessary documents, applicable taxes and fees as well as the legal particularities.

Necessary documents

When you buy a property in Mallorca, buyers need a number of documents to finalise the purchase. The most important document is the so-called Número de Identificación de Extranjero (NIE), a tax number that every foreign buyer needs. This can be obtained from the Spanish police or a consulate.

In addition, a current extract from the land register (Nota Simple) should be obtained to ensure that the seller is the legal owner of the property and that there are no encumbrances such as mortgages or debts on the property. The purchase contract (Contrato de Compraventa) and the notarised deed of sale (Escritura Pública) are also important steps in the purchase process. A lawyer who specialises in Spanish real estate law can help you compile and review the documents and make the purchase process legally compliant.

Taxes and fees

When buying a property in Mallorca, there are various taxes and fees that buyers should definitely take into account. The most important of these include

• Property transfer tax (ITP): This tax is usually between 8% and 11% of the purchase price, depending on the value of the property.
• Value added tax (IVA): For new builds, VAT of 10 % is charged instead.
• Notary fees and land registry costs: The fees for the notary and entry in the land registry are usually around 1% of the purchase price.
• Property tax: Property owners in Mallorca are obliged to pay an annual property tax, depending on the value of the property and the owner's total assets.

Special legal features

When you buy a property in Mallorca, there are some legal peculiarities that buyers should take into account. For example, it is advisable to have a comprehensive due diligence check carried out by a lawyer to ensure that all legal requirements are met and that there are no unexpected risks. This also includes checking building licences and usage rights, especially for rural properties such as fincas.

Another important aspect is the possible building regulations in certain regions of the island, especially in nature reserves, which may restrict the construction or remodelling of properties. It is also important to check whether the property can legally be rented out as a holiday property, as special licences are required for this.

In addition, buyers should note that the Spanish purchase contract is binding once finalised. Once the contract has been signed at the notary, the buyer is obliged to pay the full purchase price, otherwise financial penalties may be incurred.

Financing options

Buying a property in Mallorca is an attractive investment for many buyers. Various financing options are available to realise this purchase. Whether through bank loans, mortgages or equity - careful planning of the financing is crucial in order to successfully purchase the property. Here are the main options for financing a property purchase in Mallorca:

Bank loans

Bank loans are one of the most common financing methods when you buy a property in Mallorca, especially for buyers who want to finance part of the purchase price. Spanish banks often offer attractive conditions for loans specifically geared towards the property market. Foreign buyers can borrow from both Spanish and their home banks.

Loans are usually granted depending on the creditworthiness of the buyer, the property value and the desired financing amount. Spanish banks generally finance up to 70% of the property value for foreign buyers. It is advisable to compare different offers and draw up a financing plan that meets your individual needs. A discussion with a financial advisor or a bank specialising in Mallorca can help to find the best conditions.

Mortgages

A mortgage in Mallorca offers another option for financing a property purchase. Spanish mortgages can be taken out with both fixed and variable interest rates. Fixed interest rates offer planning security, while variable interest rates can fluctuate depending on the market situation and may offer more favourable conditions.

It is important for foreign buyers to know that Spanish banks generally have stricter requirements for mortgages than in some other countries. The mortgage amount is often limited to a maximum of 60 to 70 % of the property value. In addition, banks require proof of a stable income, a good credit rating and, in some cases, life insurance linked to the mortgage. It is advisable to check the various mortgage offers thoroughly in order to find the best possible conditions.

Equity capital

Equity plays a central role in financing a property purchase in Mallorca. As a rule, buyers should plan at least 30% of the purchase price plus the applicable taxes and fees (around 10-15% of the purchase price) as equity. The equity is not only decisive for the loan amount, but also reduces the risk and the overall costs of financing.

The higher the equity ratio, the lower the loan amount required and the better the conditions that can usually be negotiated with banks and mortgage providers. Buyers with sufficient equity also have the option of purchasing a property completely without external financing, which can lead to considerable savings in the long term.

Tips for buying a property in Mallorca

Buying a property in Mallorca is an exciting but complex process. To make the process smooth and successful, buyers should consider a few important tips. From choosing the right real estate agency to planning viewing appointments and successful contract negotiations, here are the best tips to make the most of your property purchase in Mallorca.

Local estate agencies

Working with an experienced, local real estate agency is one of the most important steps when buying a property in Mallorca. Local estate agents know the market inside out, have extensive knowledge of the legal situation and have access to a large network of property listings. They can also point out potential risks, such as a lack of planning permission or legal encumbrances on the property.

It is advisable to work with agencies that specialise in buying property from foreign buyers, as they often have multilingual teams and can guide you through the entire buying process. A good agency can not only help you find the right property, but also organise viewings, negotiate the price and handle all the legal steps.

Together to your property in Mallorca:

One such agency is KENSINGTON Artá. Thanks to our many years of experience and excellent market knowledge, we are the ideal contact for buyers looking for a property in the north-east of Mallorca.

We not only offer a wide selection of exclusive properties, but also comprehensive advice on all legal and financial aspects of the buying process. With our multilingual team, we can optimally support and guide buyers from abroad. We also have access to an extensive network of property listings that are not always available on the open market.

By working with our estate agents, buyers benefit from trustworthy advice, customised property proposals and an all-round service that covers every step - from the first viewing to the signing of the purchase contract. This ensures that the purchase of a property in Mallorca is safe and successful.

With the help of our experienced property experts, we will find your dream property in Mallorca together, perfectly tailored to your individual wishes and needs.

Viewing appointments

Viewing appointments are a crucial part of the buying process. Plan enough time to view several properties in different locations and get a comprehensive picture of the market. During the viewing, pay attention not only to the property itself, but also to the surrounding area: What are the connections to important places such as supermarkets, doctors or schools? What is the neighbourhood like? All these factors play an important role when deciding on a property.

Another important recommendation is to carry out viewings at different times of day and under different conditions (e.g. in heavy rain). This will give you a realistic impression of what life in the property is really like. Make a note of any questions or uncertainties that you can then pass on to the seller or your estate agency.

Contract negotiations

Contract negotiations when you buy a property in Mallorca require sensitivity and negotiating skills. An experienced estate agent or lawyer can help you to achieve the best conditions. Bear in mind that the stated purchase price is negotiable in many cases - especially if the property has been on the market for some time or if you become aware of defects that need to be rectified.

It is also important that all contract details are checked carefully before you sign anything. This includes checking the property features listed in the contract, any encumbrances and the correct description of the property. Take the time to make sure the contract is fair and fully protects your interests. Your solicitor should review the contract in detail and scrutinise all relevant legal and financial aspects.

Mallorca property: questions and answers

When buying or selling a property on Mallorca, there are many questions that concern buyers and sellers. From price trends and the most expensive locations to the most beautiful residential areas - here you will find answers to the most important questions about the property market on the popular Balearic island.

How are property prices developing in Mallorca?

Property prices in Mallorca have seen a steady upward trend in recent years. Especially in sought-after locations such as Palma, Port Andratx or Santa Ponsa, prices are rising continuously. The demand for high-quality properties, especially from international buyers, remains high. Experts predict that this trend will continue, as the supply of first-class properties is limited and the island remains one of the most attractive investment opportunities in the Mediterranean.

However, the price trend varies depending on the region. While prices in the tourist hotspots and luxury residential areas are rising at an above-average rate, moderate price increases can still be observed in rural areas or in the centre of the island. Overall, Mallorca remains a stable market with long-term appreciation potential.

What is the most expensive place in Mallorca?

The most expensive place on Mallorca is undoubtedly Port Andratx. This is an exclusive harbour town in the southwest of the island. It is home to some of the most luxurious villas and apartaments on the island, often with spectacular sea views and direct access to private marinas. Property prices in this region can quickly reach several million euros.

Extremely high-priced properties can also be found in Son Vida, an upmarket residential area near Palma. Son Vida is particularly popular with wealthy buyers who want to live close to the capital but still prefer the peace and privacy of an exclusive residential area. Other expensive locations in Mallorca include Bendinat and Deià, where luxurious properties can be found in the hills and on the coast.

What are the most sought-after areas in Mallorca?

Mallorca offers a variety of sought-after areas that attract both international investors and second home buyers. The most sought-after locations include:

• Palma de Mallorca: The capital offers first-class infrastructure, proximity to the international airport and a vibrant city life. The old town (Casco Antiguo) and the trendy Santa Catalina district are particularly popular.
• Puerto de Andratx: Luxurious properties with impressive sea views make this exclusive harbour town in the southwest of Mallorca a hotspot for international buyers.
• Nova Santa Ponsa: This area in the south-west is particularly popular with golf enthusiasts and families. It combines nature, beaches and upmarket residential areas.
• Pollensa: In the north of the island, Pollensa attracts buyers looking for Mediterranean charm combined with proximity to the mountains and beaches.
• Artá: Artá, in the north-east of Mallorca, is known for its charming old town and proximity to unspoilt nature. Here you will find mainly fincas and country houses that reflect the authentic Mallorca. Artá is particularly popular with buyers who appreciate a quiet and natural environment without having to forego the amenities of a well-developed infrastructure.

Other popular areas are Deià, Valldemossa and Alcúdia, each of which has its own unique charm.

Where is the best place to live in Mallorca?

Mallorca offers an impressive variety of places to live that can provide the perfect lifestyle depending on your preferences - from quiet, traditional villages to lively coastal resorts. Here are some of the most beautiful places to live on the island:

• Deià: This picturesque town on the west coast of Mallorca, nestled in the Serra de Tramuntana, is known for its spectacular nature and artistic community. Deià is ideal for those who want to combine the charm of a historic village with breathtaking sea views and tranquillity.
• Port Andratx: As one of the most luxurious residential areas in Mallorca, Port Andratx offers first-class villas with views of the harbour and the open sea. It is particularly popular with wealthy buyers who appreciate exclusive living with marinas and high-quality restaurants.
• Valldemossa: This charming mountain village delights with its historic architecture and peaceful surroundings. Nestled in the Serra de Tramuntana, Valldemossa offers a quiet quality of life, surrounded by nature and far away from the tourist hustle and bustle.
• Palma de Mallorca: Those who prefer urban life will find everything their heart desires in Palma. The capital offers culture, history and modern amenities. The historic city centre and districts such as Santa Catalina offer the perfect city life in a Mediterranean setting.
• Cala Ratjada: Cala Ratjada, located in the north-east of Mallorca, is a favourite place to live for those who appreciate the proximity to the sea and a lively yet relaxed environment. Here, beautiful beaches meet a lively atmosphere that offers both relaxation and leisure activities. The mix of charming fishermen's houses, modern apartaments and impressive villas makes Cala Ratjada a sought-after place to live for many international buyers.

Overall, Mallorca offers an impressive selection of beautiful residential locations that cater for every lifestyle - whether you prefer the urban comfort of Palma, the exclusivity of Port Andratx or the laid-back coastal charm of Cala Ratjada.