Are you a foreigner looking to buy a house in Mallorca? Complete guide 2026

If you’re thinking of buying property in Mallorca as a foreigner, the good news is that the process is simpler than it seems. Spain doesn’t impose restrictions on foreign citizens purchasing real estate. Anyone, whether a resident or not, can buy a house, apartment, villa, or country estate in Mallorca without needing any special permits.

What you do need is clear information, reliable professional support, and to know exactly what steps to take. This guide explains everything, from the initial procedures to signing before a notary. And at the end, we’ll tell you why the southeast of Mallorca—and Santanyí in particular—is the area most sought after by discerning European buyers today.

Can a foreigner buy a house in Mallorca?

Yes, without any restrictions. As a citizen of the European Union, you have exactly the same rights as any Spanish citizen to purchase a property in Mallorca. No special permits, no additional bureaucracy, no complications.

The only prerequisite is obtaining a NIE (Foreigner Identification Number), which is the tax identification number that identifies you to the Spanish authorities. Without it, no purchase or sale can be formalized.

You can apply at the Spanish Consulate in your country or directly in Spain. The process usually takes between a few days and a few weeks. With your NIE in hand, you’re all set.

The step-by-step purchase process

Buying a property in Mallorca follows a structured process. These are the usual steps:

1. Find the right property. Work with a trusted local real estate agency that knows the market well. Not all properties appear on general portals, especially in the luxury segment.

2. Offer and Negotiation Once the property has been identified, an offer is presented. If the seller accepts it, the process moves to the next step.

3. Earnest Money Contract: This is a private contract between buyer and seller that reserves the property. The buyer typically pays 10% of the price as a deposit. If the buyer backs out, they forfeit the deposit. If the seller withdraws, they must return double the amount.

4. Due diligence Before signing, it is essential to verify that the property is free of encumbrances, has all the necessary licenses, and that the zoning regulations are correct. Your real estate agent and your lawyer will take care of this.

5. Signing before a notary. The public deed of sale is signed before a notary. At that time, the remaining price is paid and the property is transferred to your name.

6. Property Registration After signing, the property is registered in the Property Registry in your name. From then on, you are the official owner.

How much money do you really need?

This is one of the areas where buyers who aren’t well-advised often encounter unpleasant surprises. The property price is only one part of the total outlay.

To that price you must add approximately 10-12% in taxes and expenses, which include:

• Property Transfer Tax (ITP): This tax is applied to the purchase of second-hand goods. In the Balearic Islands, it ranges from 8% to 13% depending on the price.
• VAT: applies to new construction, currently at 10%.
• Notary fees: between €600 and €1,500 approximately depending on the value of the property.
• Property Registry: between €400 and €900 approximately.
• Management and lawyer: between €1,000 and €3,000 depending on the complexity of the operation.

Practical example: if you buy a property for €800,000, you should expect an additional outlay of between €80,000 and €96,000 just for expenses and taxes.

Can you get a mortgage in Mallorca if you’re a foreigner?

Yes. Spanish banks finance property purchases for non-residents, although the conditions are somewhat more restrictive than for residents.

Generally, banks typically finance up to 60-70% of the appraised value for non-residents, compared to the usual 80% for residents. This means you need to have at least 30-40% of the purchase price available, plus the expenses mentioned above.

Interest rates and terms vary depending on the bank and your financial profile. It’s advisable to consult with several lenders and seek the support of a mortgage broker experienced in international transactions.

What happens with taxes if I am a resident of Germany and buy something in Mallorca?

This is a very common question among German and Northern European buyers. The short answer is: buying a property in Mallorca does not require you to change your tax residency or pay taxes in Spain on your global income.

However, there are some tax obligations that you should be aware of:

Non-Resident Income Tax (IRNR). If you are not a tax resident in Spain, you pay this tax annually. If you do not rent the property, the taxable amount is very low—it is calculated as a percentage of the property’s cadastral value, and the final amount is usually modest.

If you rent the property. Rental income is taxed in Spain. The rate for EU residents is currently 19%. You can also deduct certain property-related expenses.

Wealth Tax. In the Balearic Islands, there is a wealth tax for non-residents with assets in Spain exceeding certain thresholds. Your tax advisor or accountant will inform you whether this applies to your specific situation.

It’s highly recommended to consult with a tax advisor experienced in transactions between Germany and Spain before finalizing the purchase. This will help you avoid surprises and plan the transaction as efficiently as possible.

Which area of ​​Mallorca to choose?

Mallorca is a large island with very different markets. The area you choose will determine not only the price, but also the lifestyle, the potential for appreciation, and the profitability if you decide to rent.

Palma offers urban living and full services. Perfect for those who want city life, but without the privacy or natural surroundings that a discerning buyer seeks.

The southwest (Calvià, Andratx, Puerto Portals) is a well-established and expensive area with high tourist density. Prices in many segments have already peaked.

The north (Pollença, Alcúdia, Sóller) has spectacular landscapes, but also more overcrowding in high season and less local authenticity.

Southeast Mallorca: the area with the greatest potential for European buyers

If there is one area that stands out above the rest for the European buyer looking for quality of life, authenticity and a solid investment, it is the southeast of Mallorca — and within it, Santanyí and its surroundings.

The municipality of Santanyí encompasses some of the most exclusive and sought-after spots on the entire island: Cala Figuera, Cala Llombards, Cala d’Or, Ses Salines, Es Llombards, and Calonge, among others. Each has its own unique character, but all share something in common: an exceptional quality of life and ever-increasing international demand.

Environmental restrictions in the Mondragó Natural Park and a scarcity of buildable land mean that the supply of properties in Santanyí is limited and highly controlled. This means that prices are structurally protected and that the value of what you buy today will continue to appreciate tomorrow.

Furthermore, the southeast offers something other areas of Mallorca have lost: authenticity. Stone villages with centuries of history, uncrowded coves with crystal-clear waters, local markets, restaurants focused on fresh, local produce, and a pace of life that German, Austrian, and Scandinavian shoppers are precisely looking for when they choose Mallorca.

The airport is less than 40 minutes away. Palma is less than an hour away. But when you arrive in Santanyí, it feels like the world stops.

Common mistakes made by foreign buyers in Mallorca

Knowing the most common mistakes can save you a lot of money and a lot of trouble:

Buy without independent legal advice. Having your own lawyer — different from the other party’s — is essential to verify the legal status of the property before signing anything.

Failure to verify the urban planning status of the property. Especially in rural properties, it is essential to check that all constructions have a license and that there are no open sanctioning proceedings.

Underestimating deadlines. A property sale in Spain can take anywhere from six weeks to several months from the initial offer to the final signing. Plan accordingly.

Avoid visiting the area at different times of the year. Mallorca in August and Mallorca in January are very different experiences. If you plan to live there or spend extended periods of time there, visit outside of peak tourist season.

Working with an agency without real local knowledge. The real estate market in Santanyí is not the same as in Palma or Pollença. An agent who knows the area firsthand makes a huge difference in the final result.

Buy your property in Mallorca with the person who knows the southeast of the island best.

Buying a property in Mallorca as a foreigner is perfectly feasible. You just need the right support: someone who knows the local market inside and out, speaks your language, and has years of experience working closely with European buyers in exactly the same situation as you.

RE/MAX Collection Drac has been the leading real estate agency in southeast Mallorca for over 35 years. They have guided hundreds of German, Austrian, Swiss, and Scandinavian buyers through the entire process, from the initial viewing to the signing at the notary’s office. They know every property, every area, and every detail of the Santanyí market and its surroundings.

If you’re thinking of buying a house in Mallorca, the first step is to talk to someone who really knows the area. And that someone is in Santanyí.

Are you thinking of buying a property in Santanyí?

At RE/MAX Drac, we offer free, no-obligation advice. For over 35 years, we have been the leading real estate agency in southeast Mallorca.

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