The Total Cost of a Property in Mallorca

The total cost of a Mallorca property consists of the purchase price, one-off buying costs and running costs. Buying costs add around 10 to 13% to the purchase price of a resale property and around 13% for a new build. After that, as a rough guide, you should expect €4,000 to €12,000 a year for an apartment and €15,000 to €50,000 for a villa with pool, garden and management. As at October 2026.

The purchase price is only the most visible figure. Anyone buying a high-quality property should factor in acquisition taxes, professional review, financing, management and maintenance from the outset. The one-off costs are covered in detail in the guide to buying costs and the running costs in the guide to ongoing costs.

What makes up the total cost of a property in Mallorca?

The total cost is made up of five layers, which you should plan separately. The table shows the orders of magnitude (as at October 2026).

What does a property in Mallorca cost after ten years? Worked examples for €750,000 and €1,500,000

An apartment at €750,000 costs about €866,000 to €946,000 after ten years, and a villa at €1,500,000 about €1.82m to €2.17m, in each case without financing. The range arises from the running costs alone.

Assumptions: resale property, constant costs, no financing, no rental income, no change in value, no major renovations and no additional reserve. The buying costs come from the worked examples in the guide to buying costs (ITP calculated in bands, lawyer 1% plus IVA, Gestoría €350). The running costs are figures from experience, not official numbers.

How high are the one-off buying costs?

One-off buying costs are around 10 to 13% of the purchase price for a resale property and around 13% for a new build. On a resale property you pay ITP (8 to 13% in bands); on a new build you pay 10% IVA plus AJD of 1.5%, or 2% from a value of €1,000,000. ITP is calculated in bands on each part of the price: 8% on the first €400,000, 9% on the part up to €600,000, 10% up to €1,000,000, 12% up to €2,000,000 and 13% on the part above that.

The notary and Registro follow state fees and are not the largest block on high-value purchases: on €1,500,000 they are about €787 and €462, and on €5,000,000 about €1,785 and €1,127. A lawyer (typically 1 to 1.5% plus 21% IVA) and a Gestoría come on top. For villas, fincas, coastal locations, conversions or tourist use, the legal due diligence should cover at least title deeds, charges, building permits, the legality of extensions, energy certificate, habitability, municipal charges, Comunidad debts and, where relevant, coastal, rural land or heritage protection issues.

For tax purposes, the highest of the purchase price, the declared value and the cadastral reference value counts. Before signing an Arras or option contract, therefore, check whether the reference value is plausible, whether the full purchase price is stated in the deed and whether furniture, art, vehicles or other movable items need to be valued separately. Reduced ITP rates apply only to the buyer's main residence up to €270,151.20 and are irrelevant for holiday homes or second homes. On a new build you should also check whether deposits are secured and which costs for connections, special fittings or furnishing are charged separately.

Which running costs come on top after the purchase?

After the purchase, taxes, community charges and operating costs arise every year: roughly €4,000 to €12,000 for an apartment and €15,000 to €50,000 for a villa with pool, garden and external management, excluding major renovations and financing. The items at a glance, with details in the guide to ongoing costs:

• IBI: the municipal property tax, 0.4 to 1.10% of the cadastral value for urban properties, depending on the municipality, with possible surcharges.
• IRNR for non-residents: for properties that are used personally or left vacant, Spain imputes income of 1.1% of the cadastral value, or 2% where the cadastral value has not been revised recently. This is taxed at 19% (residents of the EU, Iceland, Norway, Liechtenstein) or 24%, with no deduction of costs. Example: €300,000 cadastral value × 1.1% × 19% = €627 a year. More in the guide to taxes for non-residents.
• Comunidad: charges in residential complexes for the lift, pool, garden, security, property administration, lighting, insurance, cleaning and maintenance. In premium complexes with a concierge, spa or underground car park they can be substantial.
• Running a villa: garden care, pool service, alarm system, cleaning, pest control, cistern, air conditioning and heating systems, irrigation, electricity, water, internet and occasionally staff. If you are not on site all year, you also need keyholding, damage checks and supplier coordination.
• Wealth tax: with larger assets, you should have Spanish wealth tax and the solidarity tax on large fortunes checked.

How much should I budget for maintenance and reserves?

As a rule of thumb, many owners set aside around 0.5 to 1.5% of the building value a year as a reserve for maintenance and renewal. This is a figure from experience with no official basis. For older villas, complex building services, sea-view locations or large plots, a higher reserve may be appropriate. Sea air, sun, damp and sloping sites put more strain on façades, roofs, windows, natural stone, pool equipment, air conditioning and electrical systems than many buyers expect.

How does financing affect the total cost?

With a mortgage, valuation costs, interest, repayments, insurance and, where relevant, exchange rate risk are added. On new mortgages the borrower pays the Tasación, while the bank pays the notary, registry, Gestoría and AJD on the creation of the mortgage (Banco de España, Ley 5/2019). The costs of the purchase deed and the acquisition taxes remain with the buyer. Spanish banks often lend more conservatively to non-residents than to residents, and the loan-to-value depends on income, asset structure, type of property and the bank's policy. More in the guide to mortgages in Mallorca.

What applies when buying from a non-resident seller?

If the seller is not tax resident in Spain, you as the buyer must withhold 3% of the purchase price and pay it to the Spanish tax authority using Modelo 211. Economically it is a payment on account of the seller, but administratively it is your obligation. Show the amount clearly in the deed and in the payment flow.

Conclusion: the purchase price is only the starting point. Good decisions come from combining tax planning, thorough due diligence, realistic running costs and sufficient reserves. Have tax and legal questions reviewed in your individual case by a tax adviser or lawyer.