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What does a luxury property in Mallorca really cost?

Luxury on Mallorca has many faces - from stylish natural stone fincas to modern architect-designed villas with sea views. But what does such a property actually cost? In addition to the purchase price itself, many factors play a role that buyers should be aware of from the outset. After all, those who are clear about the total costs will make better decisions.

 

1. the purchase price - location determines the value
The range is wide:

  • High-quality fincas in the centre of the country start at around €1.5 million
  • Modern designer villas in Son Vida or Port d'Andratx usually cost between €3 and €10 million
  • Penthouses in Palma start at around €1 million - significantly more depending on location and features

In addition to the area and architecture, the location is the decisive factor - sea views, privacy and proximity to infrastructure have a strong price-determining effect.

 

2. ancillary purchase costs in Spain
Anyone buying a property in Mallorca should expect additional costs of around 10-13 % of the purchase price. These are made up of:

  • Real estate transfer tax (ITP) from 8-11 % (staggered)
  • Notary and land registry fees (approx. 1-2 %)
  • lawyer's or expert's fees, if applicable
  • Broker's commission (usually borne by the seller, to be checked separately in case of exceptions)

 

3. ongoing costs after the purchase
Luxury properties also entail maintenance costs, such as for:

  • Property tax (IBI)
  • Waste disposal, insurance
  • Property management, garden maintenance, pool service
  • Maintenance of technology, smart home systems, etc.
    Depending on the size of the property and its location, these costs can range between €8,000 and €30,000 per year.

 

4. refurbishment, furnishing, modernisation
Older fincas or unfurnished new builds in particular incur additional expenses. High-quality furnishings, interior design and smart home equipment can quickly run into six figures - well worth it for comfort and value retention.

 

5. tax aspects & letting
Special tax regulations apply to non-resident owners. Anyone who wants to rent out the property for tourism also needs a licence - which is currently restricted. Tax advice before buying is essential.

 

Conclusion
Buying a luxury property on Mallorca is a worthwhile investment - but also comes with responsibilities. Those who plan holistically from the outset, realistically assess the ancillary costs and seek good advice will ensure that the investment brings lasting pleasure.

MARKUS
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