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Can Foreigners Buy Property in Mallorca? | Sandberg Blog

Nathan DilksMar 24, 2025

Can Foreigners Buy Property in Mallorca?

Mallorca, the crown jewel of the Balearic Islands, is a dream destination for many. Its Mediterranean charm, picturesque beaches, and vibrant real estate market make popular amongst foreign investors. But one common question arises: can foreigners buy property in Mallorca? The answer is a resounding yes. Whether you are looking for a holiday home, an investment property, plot of land to build a new construction, or maybe a permanent residence, Mallorca offers plenty of opportunities. However, understanding the legal, financial, and logistical aspects of purchasing a property in Mallorca is crucial.

Finding the right real estate agent is crucial to ensuring a smooth and successful transaction. In this comprehensive guide, we'll walk you through everything you need to know about taxes and costings when buying or selling a home in Mallorca.

Legal Requirements for Foreigners Buying Property in Mallorca

At Sandberg Estates, our expert team has been guiding foreign buyers through the process for over 15 years. With our extensive knowledge of the real estate market in Mallorca and strong connections with legal and financial professionals, we ensure a seamless buying experience from start to finish, focusing and tailoring the prices to your specific situation.

One of the main reasons Mallorca attracts foreign buyers is that Spain does not impose restrictions on non-residents purchasing property. However, to navigate the process smoothly, certain legal requirements must be met. We have broken these down below and there is more information available in our 2025 Tax Guide.

Obtaining an NIE (Número de Identificación de Extranjero): All foreign buyers must acquire this tax identification number to proceed with the purchase. The NIE is necessary for all financial and legal transactions in Spain, including paying taxes and setting up utility accounts.

Hiring a Real Estate Agent and Lawyer: A professional real estate agent familiar with the region can guide you through the process, while a lawyer will ensure all agreements and legal documents are in order. Choosing professionals who are fluent in your language and Spanish can make the process easier and stress free.

Signing a Preliminary Agreement (Contrato de Arras): This is a legally binding agreement that secures the deal before the final contract is signed. It typically involves a deposit, usually 10% of the purchase price, which could be forfeited if the buyer withdraws.

Finalising the Purchase at the Notary: The last step in buying property in Mallorca involves signing the official deed before a Spanish notary. This ensures that the sale is legally recorded, and the property is registered in the buyer's name.

The Sandberg Estates team has extensive experience helping buyers navigate these legal steps. We work closely with top lawyers and notaries on the island to ensure every transaction is handled efficiently and transparently.

Financial Considerations and Costs

Understanding the financial aspects of purchasing a property in Mallorca is essential. Several costs need to be accounted for in addition to the purchase price.

Down Payment: Typically, a buyer must pay around 10% of the purchase price as a down payment when signing the preliminary agreement.

Mortgage Options: Non-residents can obtain a mortgage in Spain, but interest rates and lending conditions may differ from those offered to residents. Spanish banks typically lend up to 60-70% of the property’s value to non-residents, while residents can obtain up to 80%.

Property Tax: Buyers should be aware of the property tax obligations, including the Transfer Tax (ITP) for resale properties and VAT for new builds. Additional taxes include annual property taxes, wealth tax for high-value properties, and capital gains tax if you decide to sell.

Additional Costs: Legal fees, notary costs, and registration fees can add up to 10-15% of the property's purchase price. It's also important to factor in the ongoing cost of living, including community fees, utilities, and maintenance.

Wealth Tax

The personal allowance is €3 million per person. This means that individuals are now exempt from wealth tax on the first €3 million of their net assets.

Non-residents are taxed only on assets located within Spain, not on their global wealth.

At Sandberg Estates, we assist clients in understanding these costs upfront. Our team has established relationships with local banks and mortgage brokers to help buyers secure the best possible financing options.

Property Search and Selection Process

Finding your dream property in Mallorca involves more than just selecting a house. The process requires careful consideration of location, property type, and investment potential.

Location Matters: Mallorca offers a variety of areas, from bustling Palma to serene coastal villages, each with its unique lifestyle and benefits.
Investment Potential: Property prices vary across the region, and some areas offer better long-term value for investors. Properties in prime locations such as Puerto Andratx, Santa Ponsa, and Palma Old Town tend to appreciate more in value.
Working with a Real Estate Agent: An experienced agent can provide valuable insights into the local real estate market and help buyers find the best deals. They also assist in negotiating favourable purchase terms and ensuring properties meet legal requirements.

With over 15 years of experience, Sandberg Estates has an in-depth understanding of the different regions of Mallorca. Whether you're looking for a modern villa in the southwest, a beachfront apartment, or a countryside finca, we match clients with properties that fit their vision and budget.

Restrictions and Regulations on Foreign Ownership

While Spain is welcoming to foreign property buyers, there are some regulations to consider.

Coastal and Rural Properties: Some restrictions may apply to purchasing properties in certain protected areas, particularly near the coastline and in rural zones with strict environmental regulations.

Golden Visa Programme: Non-EU buyers who invest over €500,000 in Spanish real estate can apply for a residence permit, allowing them to live in Spain and travel freely within the Schengen Zone.

Legal Compliance: Buyers must comply with Spanish property laws, including registration and taxation obligations, to avoid potential legal issues.

The Sandberg Estates team ensures that all our listings meet the necessary legal requirements and that buyers are fully informed about any restrictions that may apply to their chosen property.

Steps to Purchase a Property in the Balearic Islands

To ensure a smooth transaction, foreign buyers should follow these essential steps:

Research the Market: Understand property prices and trends in different areas of Mallorca.
Secure Financing: If needed, get pre-approved for a mortgage.
Find the Right Property: Work with a real estate agent to locate the perfect home.
Conduct Legal Checks: Have a lawyer verify the legal status of the property.
Sign the Agreement: Complete the preliminary contract and make the down payment.
Finalise the Sale: Sign the final contract at the notary and register the property in your name.

Our expert team at Sandberg Estates will be with you every step of the way, ensuring a hassle-free buying experience.

Benefits of Buying Property in Mallorca for Foreigners

There are many reasons why foreigners choose to invest in Mallorca’s real estate market:

High Quality of Life: The island offers a relaxed Mediterranean lifestyle with excellent amenities.

Strong Investment Potential: Property prices have shown steady growth, making it an attractive option for investors.

Residency Options: Purchasing property can lead to residence opportunities, especially through Spain’s Golden Visa programme.

Ideal Climate and Scenic Beauty: Mallorca’s stunning landscapes and mild climate make it a desirable location year-round.

With our local expertise, Sandberg Estates helps buyers make informed decisions, ensuring they invest in properties that align with their goals.

Despite the many advantages, foreign buyers may face some challenges when purchasing property in Mallorca.

Navigating Spanish Bureaucracy: Understanding Spanish property laws and tax regulations can be complex. Hiring a local lawyer can simplify the process.

Fluctuating Interest Rates: Keeping an eye on mortgage interest rates and securing favourable financing options is crucial.

High Demand and Rising Property Prices: The increasing popularity of the Balearic Islands means buyers should act quickly to secure good deals.

Language Barrier: Many transactions involve Spanish legal documents, so working with bilingual professionals can be beneficial.

At Sandberg Estates, we eliminate these challenges by providing expert guidance, personalised support, and a seamless purchasing process tailored to each client's needs.

Buying a property in Mallorca as a foreigner is not only possible but also a rewarding investment. Whether you're looking for a holiday retreat, a profitable rental, or a long-term residence, Mallorca offers something for every buyer. The combination of a strong real estate market, diverse locations, and a desirable Mediterranean lifestyle makes this island a top choice for international property seekers.

Common Challenges and How to Overcome Them

Mallorca’s real estate market continues to thrive, with house prices in Mallorca reflecting the island’s unique charm and enduring demand. From its stunning coastline to its rich cultural heritage, the island remains one of the most sought-after destinations for property buyers in Spain.

As you explore this vibrant market, understanding Mallorca real estate regluations for foreign buyers and the factors influencing them is key to making a successful investment. Whether you’re a seasoned investor or a first-time buyer, the expertise of local professionals like Sandberg Estates will ensure a seamless and rewarding experience.

With over 15 years of experience, Sandberg Estates is the trusted partner for foreign buyers looking to purchase property in Mallorca. Across the team we speak 9 languages natively, meaning that more often than not, we are able to give you the option of speaking in your mother tongue.

Together, we offer our customers a high-level service and do everything we can to remove the potential stress ingredient from the process of buying or selling a property.

Contact us today and let us help you find your perfect home in Mallorca.

At Sandberg Estates we are experts in buying and selling properties in the most exclusive areas of Mallorca.

At Sandberg Estates we are experts in buying and selling properties in the most exclusive areas of Mallorca.

Why Choose Sandberg Estates?

Local Expertise: Our agents have deep knowledge of the local real estate market and can provide insights that are critical to setting the right price and attracting buyers.

Personalised Service: We take the time to understand your unique needs and tailor our approach accordingly. Whether you need guidance on staging, pricing, or negotiating, we’re here to support you every step of the way.

Going the Extra Mile: We include services for clients that include, online guides to help guide you through the process, step by step breakdown documents, online and presidential meetings.

Proven Results: Our track record speaks for itself. We’ve helped countless homeowners successfully navigate the buying process, achieve their desired outcomes, and move on to the next chapter of their lives.

Are you a non-resident of Mallorca and looking to buy a home? Contact Us Today...

If you’re looking at purchasing a home or simply want more information about the process and the current market in Mallorca, reach out to Sandberg Estates and speak to one of our specialist agents.

We’ll provide you with the information and inform you of the current home buying climate with expert advice on how best to start the process of buying a home in Mallorca.

Do you need help?

Contact our team now!

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