Ongoing Costs & Taxes (Property Ownership)
*What does a property in Mallorca cost per year — even if you never rent it out?*
IBI (Impuesto sobre Bienes Inmuebles) — property tax#
Annual municipal tax = valor catastral × municipal rate (tipo de gravamen). Legal basis RDLeg 2/2004 (Ley de Haciendas Locales).
- Average Mallorca: ~0.5 % of the
valor catastral(Spain-wide range 0.4–1.3 %). Because the
valor catastral is usually well below market value, the IBI is moderate — in practice often 500–2.000 €/year.
- Example rates (urbana): Palma 0.445 % ✅ (the lowest rate among Spain's major cities),
Calvià 0.495 % ✅ (Ordenanza 2025), Andratx ~0.495 %, Alaró ~0.716 %. 🔴 The IVTM final amounts for Palma/Calvià remain inside the 403-blocked Ordenanza PDFs → check with the municipality.
- Payment: municipal; Palma ~Sept.–Dec., Calvià collects directly through the town hall (not ATIB).
IBI in the year of sale — who pays? ⚖️ STS 409/2016 ✅#
STS 409/2016 of 15.06.2016 (rec. 2110/2014) ✅: the party liable to the municipality is whoever was the owner on 1 January (the seller). Absent any agreement to the contrary, however, the seller may pass on the IBI pro rata (from handover onwards) to the buyer. → Include the arrangement in the escritura.
Tasa de basura / recogida de residuos (waste fee)#
Municipal, often due together with the IBI. 🟡 Typically ~100–200 €/year; Palma ~209,72 €/year 🟡 (reference household, EMAYA "Tarifa Justa"), Calvià raised by +23 % in 2025. 🔴 Exact tariff bands are in the blocked Ordenanzas → check with the municipality. Note: the Spain-wide reform (Ley 7/2022) leads to increases in many places.
Gastos de comunidad (owners' association) + Ley de Propiedad Horizontal (Ley 49/1960)#
Only for flats/complexes with shared ownership. ~100–300 €/month in quality developments (luxury resorts more); a detached finca: 0 €.
derrama= special levy for major works — borne by whoever is the owner when it falls due.certificado de estar al corriente de pago(debt status with the community): **a mandatory document
before the deed (Art. 9.1.e LPH). The buyer is liable with the property for community debts of the current year + the 3 preceding** years.
estatutosto check: can they prohibit tourist letting? (→ Ch. 11/13)
IRNR — renta imputada (notional own-use tax for non-residents)#
Even a property that is not rented out triggers IRNR for the non-resident (Modelo 210, annually):
1. Base = 1.1 % of the valor catastral (revised within the last 10 years) or 2 % (older). 2. Rate: 19 % (EU/EEA) or 24 % (third countries: UK, USA, Switzerland).
Example: valor catastral 200.000 € × 1.1 % = 2.200 € × 19 % = 418 €/year.
Further ongoing items#
| Item | Order of magnitude |
|---|---|
seguro de hogar (building/contents) | ~300–800 €/year (villa more) |
| Utilities (electricity/water standing charges) | usage-dependent |
vado (driveway permit) | ~30–100 €/year (municipal) 🔴 |
| Dog: no classic dog tax, but mandatory liability insurance (Ley 7/2023) | ~50–100 €/year |
❓ FAQ#
Do I pay taxes in Mallorca even if I don't rent out? Yes — as a non-resident, the IRNR on notional own use (renta imputada, 1.1 %/2 % of the valor catastral × 19 %/24 %), plus IBI, waste fee, and where applicable comunidad.
Sources (selection)#
- RDLeg 2/2004 (Haciendas Locales) · STS 409/2016 (→ Ch. 23) · Ley 49/1960 (LPH, Art. 9)
- AEAT Modelo 210 (renta imputada) · ATIB / municipal Ordenanzas