Buy Property in Palma de Mallorca: Prices, Balearic Taxes and Districts

The Old Town (Casco Antiguo) around the cathedral has restored townhouses and apartments, with high prices and limited parking. Santa Catalina is the trendy neighbourhood of markets and restaurants, and Portixol and Es Molinar are seaside quarters. El Terreno and Son Armadans are popular residential areas with a mix of expat and local buyers. Palma airport has year-round connections to northern Europe, and the island's mild winter makes it a live-in city, not just a summer address. The Serra de Tramuntana mountains and villages are a short drive away.

Foreigners can buy freely in Spain, and an NIE number is needed. The golden visa ended on 3 April 2025. On resale properties the Balearic transfer tax (ITP) is progressive, from roughly 8% at lower values rising to around 13% above the highest threshold; new homes pay 10% VAT and stamp duty. Confirm all rates locally.

Tourist-rental rules are strict in Palma, and many flats cannot be let to tourists, so check licences before relying on holiday income. See our Spain buying guide and Spain financing page.

Ibiza is a different Balearic island reached by plane or ferry, and Marbella is on the Costa del Sol, a different region. The Spain page covers the rest.