Sorello Guides

The full cost of buying a home in Palma

Almost nothing here is a second home: 15,76 % of dwellings are not somebody's main residence. The appraised average of 3.788,9 €/m² belongs to the small group of expensive Spanish municipalities. Palma is one of the largest cities in Spain, so treat every municipal figure below as the midpoint of a very wide distribution.

What the deed itself costs

Balearic Islands charges transfer tax on a progressive scale rather than a single rate, starting at 8 % and rising through bands as the value goes up; the table below applies the scale bracket by bracket. In Palma the Balearic Islands transfer tax on a resale runs into tens of thousands of euros, which is why the declared value is scrutinised.

Transfer tax on a resale purchase, at three illustrative prices
Purchase priceTransfer tax
200.000 €16.000 €
350.000 €28.000 €
600.000 €50.000 €

The three prices are round illustrative figures chosen to bracket the ordinary range, not measurements of this market.

The reduced rates, stamp duty and the deed checklist for Balearic Islands

A sense of scale

Of the Illes Balears municipalities covered here, this one comes highest on population.

Across the country, the total dwelling stock here belongs to the dearest twentieth of them all.

Within Illes Balears, that is the highest number of urban cadastral units among the municipalities this guide covers.

Measured against the whole batch, that count of registered residential units sits in the dearest twentieth of them all.

Of the Illes Balears municipalities covered here, this one comes highest on number of appraisals behind the average.

The comparison that matters

Country-wide, that appraised value of a home under five years old is one of the second-dearest twentieth.

On appraised value per square metre it is the fifth highest of the Illes Balears municipalities this guide covers.

Set the national range end to end and this appraised value of an older home lands in the third-dearest twentieth.

Take Illes Balears alone: among the municipalities here, its share of the urban register that is housing is the second lowest.

Over the whole guide, the premium a new build commands over an older home recorded here falls within the seventeenth twentieth from the bottom.

A sense of scale

Among the Illes Balears towns and cities covered here, it records the fourth lowest urban property-tax rate.

Taking every municipality covered here together, the average cadastral value per home is in the top quarter.

Among the Illes Balears towns and cities covered here, it records the fourth lowest average cadastral value per home.

Against every municipality in this guide, its year of the last cadastral revision lands in the third-dearest twentieth.

How old the cadastral values are

The last general revision in Palma was 2013, so cadastral values sit some way below market values.

The construction tax is 4 %, the statutory maximum, which matters if you plan to renovate.

A stock of homes people actually live in

At 25,08 % of main homes rented, Palma has a rental sector large enough to set the tone of the market.

Only 15,76 % of Palma dwellings are not somebody's main home, so the market is driven by people who live here.

Across the city the census recorded 186.482 dwellings.

What owning costs every year

Rural land carries 0,735 %, close to the urban rate.

Cadastral values in Palma average 77.262 € per dwelling, an ordinary base.

The urban IBI rate in Palma is 0,445 %, on the low side nationally.

A cadastral value of 180.000 € taxed at 0,445 % gives 801 €, though the register is old enough that real values have moved.

The cadastral value in this example is a round illustrative figure, not the cadastral value of any particular property here. Ask for the last IBI receipt: it states the real one.

The pace of sales

The notarial series does not carry a figure for Palma in this release, so no sales count is shown rather than an invented one.

What the appraisers see

The appraised average in Palma is 3.788,9 €/m², which is a coastal or capital-city price.

The premium for new build is clear: 4.717,2 €/m² against 3.753,3 €/m² for anything older.

With 1.169 appraisals behind it, the quarterly average barely moves on individual transactions.

Related guides

Sources and licences