After the notary comes the question almost nobody asks before signing: what does it cost to own a house in Mallorca each year? There is no single figure — it depends on size, garden, pool and whether you live here or visit for a few weeks — but the list of items is always the same. Here is ours, just as we go through it with buyers in the office.
Local taxes and charges
IBI (property tax) is a municipal tax, paid every year and calculated on the cadastral value, which is usually well below market price. Add the council's refuse charge and, for an apartment or a house on a development with shared areas, the community fees. Our advice: do not rely on estimates — ask the seller for the latest receipt for each before you sign. That is the exact figure, not an approximation.
If you are not tax resident in Spain
Even if you never let it, a home in Spain generates a yearly deemed income on which non-resident owners pay IRNR: 1.1 % of the cadastral value (2 % if that value has not been revised since 1994), taxed at 19 % for residents of the EU and EEA or 24 % for everyone else. An example in round numbers: cadastral value of €300,000 → deemed income of €3,300 → about €627 a year. It is filed on Modelo 210; if the house is let, it is the rental income that is taxed instead.
Wealth tax only affects larger estates. In the Balearics the exempt threshold is €3 million, and non-residents can opt for the Balearic rules when they file; above that threshold the solidarity tax on large fortunes may also apply. If your situation is anywhere near those figures, review it with a tax adviser before you buy, not after.
The most expensive house is not the one that cost the most — it is the one nobody checked before winter.
Utilities and insurance
- Electricity: the contracted power is charged even in the months you are away.
- Water: mains supply in the village and most developments; on rural properties, a well or cistern, sometimes topped up by tanker in summer.
- Buildings and contents insurance: essential if the house stands empty for months. Read the conditions on unoccupancy carefully.
- Internet, alarm or cameras, if you want to keep an eye on the house from afar.
Maintenance: where the difference lies
This is where two houses at the same price part ways. Garden and pool need regular service; a finca with land adds clearing the grounds (also for fire prevention) and looking after the dry-stone walls; and near the sea, salt air means woodwork, fittings and exterior paint need attention more often. As a rule of thumb, owners set aside around 1 % of the property's value per year for maintenance — a little more with a large garden, a pool or a frontline position.
If the house stands empty part of the year
A closed house ages faster than a lived-in one. Someone you trust to open up, air the rooms, check after every storm and let you know when something is wrong saves major repairs. Many owners use a key-holding service; if you ask, we will introduce you to local professionals we have worked with for years.
Before signing, ask the seller for the latest IBI, the refuse charge, any community fees and a full year of utility bills. With that, plus your tax situation, you have the real annual cost rather than an estimate. And for the rest of the purchase, our free buyer's guide covers the whole process.
