Let's talk straight: What your dream home in Mallorca will really cost in 2025

The dream of Mallorca: from the feeling to the facts

When we think of Mallorca, we all immediately have images in our heads: the sunset at the Mirador of Santa Ponsa, the glittering yachts in Port Adriano or simply the feeling of arriving at the airport and breathing in the warm air. We don't just sing about this pure island feeling in our song, we live it every day.

But for the dream of a „happy place“ to come true, the financial side also has to be right. We still remember our own start on the island. You hear rumours about additional costs, warnings about taxes and end up feeling insecure. That's why we're providing clarity today. Honestly, transparently and with the current figures for 2025, so that you can concentrate on the essentials: The anticipation.

The purchase price is only half the truth - the one-off costs

First things first: it makes a difference whether you buy a chic new-build villa directly from the property developer or have fallen in love with an existing finca.

1. new building (first occupancy) The calculation here is relatively simple: you pay 10 % IVA (Spanish VAT) on the purchase price. In addition, there is the stamp duty (AJD), which is currently around 1.5 % in the Balearic Islands.

2. existing property (resale) This is where the real estate transfer tax, the so-called ITP (Impuesto sobre Transmisiones Patrimoniales). Important to know: In Mallorca, you do not simply pay a flat rate. The tax increases progressively with the purchase price.

For 2025, the staggering on the Balearic Islands looks like this:

• Up to €400,000: 8 %
• 400,001 € to 600,000 €: 9 %
• 600,001 € to 1,000,000 €: 10 %
• From € 1,000,000: 12 % (and from 2 million even 13 %)

What does that mean in concrete terms? It's a mixed calculation. If you buy a flat in Santa Ponsa for €650,000, you do not pay 10 % on the entire sum. You pay 8 % for the first €400,000, 9 % for the part up to €600,000 and only for the last €50,000 do you pay the 10 %. This saves you money compared to the flat-rate calculation often found on the Internet.

Important innovation in 2025: the wealth tax

This is excellent news, especially for clients looking to buy in the premium segment in Nova Santa Ponsa or El Toro. For a long time, Spanish property tax was an obstacle for many international investors.

However, for the 2025 tax year (and retroactively for the 2024 declaration), the Balearic Islands have massively increased the tax-free allowance to 3 million euros raised.

This fundamentally changes the situation. In the past, many owners had to pay additional tax every year just because they owned a valuable property. Now, most holiday properties are completely exempt from this tax obligation. This makes Mallorca an extremely competitive location again in an international comparison.

Additional purchase costs: notary, register & lawyer

In addition to taxes, you should plan for the following items:

• Notary & land register: The costs are based on tables, but usually total around 0.5 % to 1 % of the purchase price.
• The lawyer: security for your investment A lawyer in Spain is the gold standard to ensure that everything runs smoothly during the purchase. We have been working with first-class law firms for years and are happy to put you in touch with them to ensure that your investment is legally „clean“. Of course, you can also choose your own trusted lawyer. In this case, you should include this item in your calculations.

What does everyday life in Santa Ponsa cost?

The house is yours? Congratulations! But what monthly costs can you expect?

1. property tax (IBI) and waste Once a year, the IBI (Impuesto sobre Bienes Inmuebles) are due. For a villa in the south-west, you can roughly expect to pay between €800 and €2,000 per year, depending on the size and location. There is also the rubbish charge. In the municipality of Calvià there is a fixed annual fee, and there may be costs for additional emptying or green waste.

2. community costs (Comunidad) If you opt for a flat in a complex, you pay a monthly house fee. This often covers the gardener, pool maintenance and water. Depending on the equipment level of the complex, you can expect to pay between €120 and €600 per month. The advantage: you don't have to worry about anything - arrive, unlock, go on holiday.

Our conclusion: Calculate realistically

When customers ask us: „How much extra money do I need to have ready?“, we advise them: Calculate with 10 % to 12 % on top of the purchase price. Then you are on the safe side, all taxes are paid and there is a budget left for the first dinner on the new terrace.

This clarity gives you the confidence to make the right decision. We want you to feel as much at home on Mallorca as we do - without any surprises when it comes to costs.

Do you have a specific property in mind? Write to us or give us a call. We will provide you with a personalised, non-binding breakdown of the total costs. Because we are not just estate agents, we are your local partner.

Fancy a non-binding introductory meeting? Click here for our Contact form.

We look forward to getting to know you.

Maja and Leo