What does it really cost to buy a home in Mallorca?

If you have €350,000 to spend on a home in Mallorca, deciding whether that is your offer price or your whole budget changes the properties you can look at. Put the purchase price, transaction costs and money for the first year on separate lines.

A €350,000 resale example

Assume a resale with a taxable base of €350,000 and no reduced rate or exemption. The first band of the Balearic general transfer-tax scale is 8% up to €400,000. In this example that comes to €28,000, bringing the running total to €378,000 before notary, registration, legal or other costs. Ask your adviser to confirm the taxable value and whether you qualify for a relief before you use the calculation for a real offer.

Get separate figures for a new-build purchase

Ask whether VAT and stamp duty apply instead of resale transfer tax, and which charges the developer has included in the quote. Before signing a reservation, ask for an itemised completion estimate, the payment dates and the terms on which you would recover any advance payment.

Budget for the first year

Ask for the annual property tax, community charges and any works already voted on by the owners’ association. For a finca, find out how water, drainage and access are maintained. Put any immediate repairs in the budget before deciding how much you can afford to offer.

What to ask your lawyer for

Ask for a written estimate with the taxable base, tax rate, any relief being assumed and every expected third-party charge. Ask which amounts could change between the offer and completion. You can then compare two homes using the same assumptions.

Sources and related guides

Balearic tax agency guidance on transfer tax

Our guide to buying a house in Mallorca

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