[vc_row][vc_column][vc_column_text]<\/p>\n
The purchase price is only the beginning.<\/strong> Once the keys are yours, a Mallorca home settles into a rhythm of smaller, recurring costs: taxes, fees, utilities and the upkeep a second home in the sun quietly demands. None is dramatic alone, but together they define what it really costs to own here year after year. We are a boutique agency working the southeast — Ses Salines, Santanyí, Colònia de Sant Jordi, Campos, Felanitx — since 2010, and this is the honest, plain-English rundown we give American buyers before they fall in love with a finca.<\/p>\n A quick word on the figures below: taxes and rates vary from town to town and house to house, so every number here is an estimate meant to set expectations<\/strong>, not a quote for your property.<\/p>\n [\/vc_column_text][g5plus_space desktop=”35″ tablet=”30″ tablet_portrait=”25″ mobile_landscape=”20″ mobile=”20″][g5plus_heading sub_title=”Property tax” title=”IBI and the valor catastral” text_align=”text-left”][g5plus_space desktop=”20″ tablet=”18″ tablet_portrait=”15″ mobile_landscape=”12″ mobile=”12″][vc_column_text]<\/p>\n The IBI<\/strong> (Impuesto sobre Bienes Inmuebles<\/em>) is the Spanish equivalent of an annual property tax, billed by the local town hall. It is charged to whoever owns the property on January 1 of each year, and in our part of the island the bill usually lands in the second half of the year.<\/p>\n IBI is not based on what you paid. It is calculated from the valor catastral<\/em><\/strong> — an administrative value the Spanish state assigns to your land and building, almost always well below market price. That is why IBI in Mallorca tends to feel modest to Americans used to US property-tax rates. Each town hall applies its own coefficient, so two similar houses in different municipalities can pay noticeably different amounts.<\/p>\n As a rough guide, a typical southeast villa often sees annual IBI in the €800–€2,500 range<\/strong>, with larger estates paying more. Treat that as an estimate; your lawyer can read the exact valor catastral<\/em> and IBI history from the deeds and the catastro<\/em> before you buy. That value matters far beyond IBI, too: it is the number that drives the imputed-income tax non-resident owners pay.<\/p>\n [\/vc_column_text][g5plus_space desktop=”22″ tablet=”20″ tablet_portrait=”18″ mobile_landscape=”15″ mobile=”15″][vc_message message_box_style=”solid-icon” message_box_color=”info” icon_fontawesome=”fa fa-info-circle”]Why the valor catastral is the number to know:<\/strong> it sets your IBI and the annual imputed-income tax you owe as a non-resident. Ask for it in writing before you sign — it is public and easy to obtain.[\/vc_message][g5plus_space desktop=”35″ tablet=”30″ tablet_portrait=”25″ mobile_landscape=”20″ mobile=”20″][g5plus_heading sub_title=”Local charges” title=”The rubbish tax (basura)” text_align=”text-left”][g5plus_space desktop=”20″ tablet=”18″ tablet_portrait=”15″ mobile_landscape=”12″ mobile=”12″][vc_column_text]<\/p>\n Separate from IBI, most municipalities levy an annual waste-collection tax<\/strong>, known locally as the basura<\/em>. It is a flat charge rather than a percentage of value, so it does not scale with the size of your home. In the southeast, expect it to run €100–€300 a year<\/strong> for a house, depending on the town. A small line item, but easy to forget — and some town halls bill it separately from IBI, on a different date.<\/p>\n [\/vc_column_text][g5plus_space desktop=”35″ tablet=”30″ tablet_portrait=”25″ mobile_landscape=”20″ mobile=”20″][g5plus_heading sub_title=”Shared ownership” title=”Community fees” text_align=”text-left”][g5plus_space desktop=”20″ tablet=”18″ tablet_portrait=”15″ mobile_landscape=”12″ mobile=”12″][vc_column_text]<\/p>\n Buy an apartment, a townhouse in a development, or a villa inside an urbanización<\/em> with shared roads, gates, gardens or a communal pool, and you will belong to a comunidad de propietarios<\/em><\/strong> — the Spanish homeowners’ association — and pay community fees<\/strong>. These cover everything held in common: cleaning, gardening, lighting, shared-area insurance, lift and pool maintenance, and a reserve fund for repairs.<\/p>\n Fees depend entirely on what the community maintains. A simple block of apartments might charge a few hundred euros a year; a well-kept development with pools, landscaped grounds and security can run into the thousands per year<\/strong>. A freestanding finca<\/em> with no shared infrastructure usually has no community fee at all. Before you buy into any community, review its budget, minutes and reserve fund — a healthy community is a pleasure; a poorly run one is a recurring headache.<\/p>\n [\/vc_column_text][g5plus_space desktop=”35″ tablet=”30″ tablet_portrait=”25″ mobile_landscape=”20″ mobile=”20″][g5plus_heading sub_title=”Protection” title=”Home insurance” text_align=”text-left”][g5plus_space desktop=”20″ tablet=”18″ tablet_portrait=”15″ mobile_landscape=”12″ mobile=”12″][vc_column_text]<\/p>\n Home insurance is not legally required if you bought without a mortgage, but it is strongly advisable — and a Spanish lender will require at least buildings cover. Policies typically bundle buildings and contents, with options for liability, water damage and second-home clauses for the months a house sits empty. For a standard southeast home, budget roughly €300–€900 a year<\/strong>, more for high-value villas. Premiums track replacement cost, not market price, and insurers often add a modest surcharge for properties left unoccupied for long stretches.<\/p>\n [\/vc_column_text][g5plus_space desktop=”35″ tablet=”30″ tablet_portrait=”25″ mobile_landscape=”20″ mobile=”20″][g5plus_heading sub_title=”Running costs” title=”Utilities: water, electricity and the island factor” text_align=”text-left”][g5plus_space desktop=”20″ tablet=”18″ tablet_portrait=”15″ mobile_landscape=”12″ mobile=”12″][vc_column_text]<\/p>\n Utilities are where the “island factor” shows up. Mallorca imports much of its energy and manages a limited water supply, so electricity and water can cost more than on the mainland<\/strong> — most noticeably in summer, when air-conditioning, pools and irrigation all run at once.<\/p>\n Electricity swings widely with how you live: a lightly used holiday home might spend €600–€1,200 a year<\/strong>, while a full-time home with air-conditioning and a pool pump climbs well beyond that. Water is billed by the local supplier, and some inland properties rely on wells or cisterns rather than mains — confirm this on any rural finca. Both utilities carry fixed standing charges, so even an empty house is never quite at zero.<\/p>\n This is why solar makes so much sense here<\/strong>. The southeast enjoys some of the most generous sunshine in Europe, and photovoltaic panels — increasingly common on the villas we sell — can meaningfully cut bills and cushion you against rising rates. If a property already has panels, count that as a genuine saving; if not, it is often a smart early investment.<\/p>\n [\/vc_column_text][g5plus_space desktop=”22″ tablet=”20″ tablet_portrait=”18″ mobile_landscape=”15″ mobile=”15″][vc_message message_box_style=”solid-icon” message_box_color=”success” icon_fontawesome=”fa fa-lightbulb-o”]Our tip:<\/strong> ask the seller for a full year of electricity and water bills before you commit. Twelve months of real invoices tell you more about the true cost of running a house than any estimate — and reveal whether solar is already pulling its weight.[\/vc_message][g5plus_space desktop=”35″ tablet=”30″ tablet_portrait=”25″ mobile_landscape=”20″ mobile=”20″][g5plus_heading sub_title=”Second homes” title=”Pool, garden and property management” text_align=”text-left”][g5plus_space desktop=”20″ tablet=”18″ tablet_portrait=”15″ mobile_landscape=”12″ mobile=”12″][vc_column_text]<\/p>\n If Mallorca is your second home — as it is for most of our American buyers, at least at first — the house needs looking after while you are back in the States, a recurring cost that first-time overseas owners often underestimate.<\/p>\n A pool<\/strong> needs regular servicing; a garden<\/strong> — especially the mature Mediterranean grounds that make southeast fincas so beautiful — needs a gardener and irrigation through the dry months. Many owners also engage a property manager<\/strong> or keyholder to check the house, meet tradespeople and prepare it before they arrive. Together these commonly add up to a few thousand euros a year<\/strong>, more for large estates. It buys real peace of mind: your house is watched and ready, not neglected for ten months of the year.<\/p>\n [\/vc_column_text][g5plus_space desktop=”35″ tablet=”30″ tablet_portrait=”25″ mobile_landscape=”20″ mobile=”20″][g5plus_heading sub_title=”Non-resident taxes” title=”What US owners owe the Spanish tax office” text_align=”text-left”][g5plus_space desktop=”20″ tablet=”18″ tablet_portrait=”15″ mobile_landscape=”12″ mobile=”12″][vc_column_text]<\/p>\n This is the part most American buyers know least about. As a non-resident owner, Spain taxes you under the IRNR<\/strong> (Non-Resident Income Tax) regime, filed on Modelo 210<\/strong>. What you owe depends on whether the home sits empty for your own use or is rented out.<\/p>\n 1. Imputed income tax (second home, not rented).<\/strong> Spain assumes that owning a home you do not rent still gives you a “benefit,” and taxes a notional income on it each year. The base is 1.1% of the valor catastral<\/em><\/strong> if that value has been revised within the last ten years, or 2%<\/strong> if not. As a US citizen you are a non-EU<\/strong> resident, so the rate is 24%<\/strong> (EU\/EEA residents pay 19%). That works out to roughly 0.26%–0.48% of the valor catastral<\/em> per year<\/strong> — often a few hundred euros for a typical home, filed the year after the tax year.<\/p>\n 2. Rental income tax (if you let the property).<\/strong> Rent the home out and that income is taxed instead — and here the US buyer is at a clear disadvantage: non-EU residents pay 24% on gross rental income with no deduction for expenses<\/strong>, so you cannot subtract mortgage interest, repairs, agency fees or utilities. EU\/EEA residents pay 19% on the net figure after costs. Short-term holiday letting also requires a tourist licence, tightly restricted in our area — ask us before assuming a property can be rented to tourists.<\/p>\n [\/vc_column_text][g5plus_space desktop=”22″ tablet=”20″ tablet_portrait=”18″ mobile_landscape=”15″ mobile=”15″][vc_message message_box_style=”solid-icon” message_box_color=”info” icon_fontawesome=”fa fa-info-circle”]No more Golden Visa.<\/strong> Spain abolished its Golden Visa residency-by-investment scheme on 3 April 2025<\/strong>. Buying property in Mallorca no longer opens a path to Spanish residency — disregard any older guide that suggests otherwise. Owning a home and living here legally are two separate questions, so plan your time on the island around standard visa and residency rules.[\/vc_message][g5plus_space desktop=”35″ tablet=”30″ tablet_portrait=”25″ mobile_landscape=”20″ mobile=”20″][g5plus_heading sub_title=”Wealth taxes” title=”Wealth Tax and the Solidarity Tax in the Balearics” text_align=”text-left”][g5plus_space desktop=”20″ tablet=”18″ tablet_portrait=”15″ mobile_landscape=”12″ mobile=”12″][vc_column_text]<\/p>\n Spain has an annual Wealth Tax<\/strong> (Impuesto sobre el Patrimonio<\/em>), and here the Balearics are, for most buyers, unusually gentle. The national default exempts the first €700,000<\/strong> of net wealth per person plus up to €300,000<\/strong> for a main residence — but the Balearic government raised its own exempt minimum to €3,000,000 per person<\/strong>, in force since 1 January 2024. Non-residents with assets here can generally apply the regional rules, depending on circumstances — another point for your advisor.<\/p>\n The practical effect: below roughly €3 million of net Spanish assets per owner<\/strong>, most buyers in our region pay no Balearic Wealth Tax at all. And because each co-owner has their own allowance, a jointly owned home is measured against a combined threshold far above the price of most properties we sell.<\/p>\n Above that level, a second tax engages: the national Solidarity Tax on Large Fortunes<\/strong> (Impuesto de Solidaridad de las Grandes Fortunas<\/em>), on net wealth above €3,000,000<\/strong>, on a progressive scale up to about 3.5% at the top. Crucially, the two are coordinated — any regional Wealth Tax you pay is credited against the Solidarity Tax<\/strong>, so you are not taxed twice. In fact the Balearic €3M minimum was designed to line up with the Solidarity threshold, so that up to that point regional Wealth Tax is effectively neutralized. These figures can change, so treat the bracket details as a snapshot and confirm current rules when you buy.<\/p>\n [\/vc_column_text][g5plus_space desktop=”35″ tablet=”30″ tablet_portrait=”25″ mobile_landscape=”20″ mobile=”20″][g5plus_heading sub_title=”The American angle” title=”Don’t forget the IRS” text_align=”text-left”][g5plus_space desktop=”20″ tablet=”18″ tablet_portrait=”15″ mobile_landscape=”12″ mobile=”12″][vc_column_text]<\/p>\n As a US citizen or green-card holder, you are taxed on your worldwide income<\/strong> wherever you live, so a Mallorca home has a US side as well as a Spanish one. Rental income reported in Spain generally has to be reported to the IRS too; the US–Spain treaty and foreign-tax-credit rules keep you from paying twice on the same income, but only if applied correctly. Reporting obligations such as FBAR and FATCA<\/strong> can also arise once you open a Spanish bank account to run the property.<\/p>\n We are real-estate specialists, not tax advisors, and this is general information, not advice for your situation. The most valuable thing you can do is engage a cross-border US–Spain tax advisor<\/strong> early — ideally before you buy — so both sides line up from day one. We are glad to introduce you to the trusted gestores<\/em> and English-speaking lawyers we work with every week.<\/p>\n [\/vc_column_text][g5plus_space desktop=”35″ tablet=”30″ tablet_portrait=”25″ mobile_landscape=”20″ mobile=”20″][g5plus_heading sub_title=”Putting it together” title=”A realistic annual picture” text_align=”text-left”][g5plus_space desktop=”20″ tablet=”18″ tablet_portrait=”15″ mobile_landscape=”12″ mobile=”12″][vc_column_text]<\/p>\n Every house is different, but here is how the pieces typically stack up for a comfortable southeast villa held as a second home. All figures are estimates to frame your budget<\/strong>, not quotes.<\/p>\n IBI:<\/strong> €800–€2,500. Rubbish tax:<\/strong> €100–€300. Insurance:<\/strong> €300–€900. Utilities:<\/strong> €1,000–€2,500+, lower with solar. Pool, garden and management:<\/strong> a few thousand euros for a maintained villa. Community fees:<\/strong> zero for a standalone finca, up into the thousands in a development. Imputed-income tax:<\/strong> commonly a few hundred euros. Wealth tax:<\/strong> for most buyers, nothing, thanks to the €3M Balearic minimum.<\/p>\n Browse what is for sale in our corner of the island on our properties for sale in Mallorca<\/a> page, and pair these ownership costs with the American’s guide to buying property in Mallorca<\/a> for the full purchase process.<\/p>\n [\/vc_column_text][g5plus_space desktop=”35″ tablet=”30″ tablet_portrait=”25″ mobile_landscape=”20″ mobile=”20″][g5plus_heading sub_title=”Common questions” title=”Frequently asked questions” text_align=”text-left”][g5plus_space desktop=”20″ tablet=”18″ tablet_portrait=”15″ mobile_landscape=”12″ mobile=”12″][vc_column_text]<\/p>\n IBI is calculated from the valor catastral<\/em>, not the price you paid, and varies by municipality. For a typical southeast villa it often falls in the €800–€2,500 range per year, larger estates more. Ask your lawyer to read the exact figure before you buy — this is an estimate only.<\/p>\n An annual imputed-income tax on Modelo 210. The base is 1.1% of the valor catastral<\/em> (or 2% if not revised in the last ten years), taxed at 24% for US citizens as non-EU residents — usually a few hundred euros.<\/p>\n Yes. As a non-EU resident you pay 24% on gross rental income with no deduction for expenses, whereas EU\/EEA residents pay 19% on net income. Short-term holiday letting also needs a tourist licence, which is restricted in our area, so confirm what is possible first.<\/p>\n Most buyers in the Balearics will not. The regional exempt minimum is €3,000,000 of net wealth per person (since 2024), and each co-owner has their own allowance. Above that, the regional Wealth Tax and national Solidarity Tax apply but are coordinated so you are not taxed twice. Confirm current figures with an advisor.<\/p>\n No. Spain abolished its Golden Visa investment-residency scheme on 3 April 2025, so buying a home no longer grants any residency right. Owning and living here are separate matters governed by standard visa and residency rules.<\/p>\n Generally yes. The US taxes citizens and green-card holders on worldwide income, and rules like FBAR and FATCA can apply to Spanish accounts. The US–Spain treaty and foreign tax credits usually prevent double taxation, but work with a cross-border advisor to apply them correctly. General information, not tax advice.<\/p>\n [\/vc_column_text][g5plus_space desktop=”35″ tablet=”30″ tablet_portrait=”25″ mobile_landscape=”20″ mobile=”20″][g5plus_heading sub_title=”Talk to people who live here” title=”We’ll help you budget it properly” text_align=”text-left”][g5plus_space desktop=”20″ tablet=”18″ tablet_portrait=”15″ mobile_landscape=”12″ mobile=”12″][vc_column_text]<\/p>\n We have helped buyers own homes across the southeast since 2010, and we know what these houses actually cost to run — because we live with the same bills. Tell us the property you have in mind and we will walk you through its real numbers, connect you with the right lawyer and tax advisor, and make sure there are no surprises after the keys change hands.<\/p>\n [\/vc_column_text][g5plus_space desktop=”30″ tablet=”28″ tablet_portrait=”24″ mobile_landscape=”20″ mobile=”20″][vc_btn title=”Talk to our team” style=”flat” shape=”round” color=”success” size=”lg” align=”center” link=”url:https%3A%2F%2Fvillasyfincasmallorca.com%2Fen%2Fcontacto%2F|title:Contact”][g5plus_space desktop=”20″ tablet=”20″ tablet_portrait=”18″ mobile_landscape=”15″ mobile=”15″][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":" [vc_row][vc_column][vc_column_text] The purchase price is only the beginning. Once the keys are yours, a Mallorca home settles into a rhythm of smaller, recurring costs: taxes, fees, utilities and the upkeep a second home in the sun quietly demands. None is dramatic alone, but together they define what it really costs to own here year after […]<\/p>\n","protected":false},"author":0,"featured_media":62273,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_themeisle_gutenberg_block_has_review":false,"footnotes":""},"categories":[615,613],"tags":[],"class_list":["post-67509","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","category-us-buyers-guide"],"_links":{"self":[{"href":"https:\/\/villasyfincasmallorca.com\/en\/wp-json\/wp\/v2\/posts\/67509","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/villasyfincasmallorca.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/villasyfincasmallorca.com\/en\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/villasyfincasmallorca.com\/en\/wp-json\/wp\/v2\/comments?post=67509"}],"version-history":[{"count":1,"href":"https:\/\/villasyfincasmallorca.com\/en\/wp-json\/wp\/v2\/posts\/67509\/revisions"}],"predecessor-version":[{"id":67636,"href":"https:\/\/villasyfincasmallorca.com\/en\/wp-json\/wp\/v2\/posts\/67509\/revisions\/67636"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/villasyfincasmallorca.com\/en\/wp-json\/wp\/v2\/media\/62273"}],"wp:attachment":[{"href":"https:\/\/villasyfincasmallorca.com\/en\/wp-json\/wp\/v2\/media?parent=67509"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/villasyfincasmallorca.com\/en\/wp-json\/wp\/v2\/categories?post=67509"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/villasyfincasmallorca.com\/en\/wp-json\/wp\/v2\/tags?post=67509"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}How much is property tax (IBI) on a home in southeast Mallorca?<\/h3>\n
What tax do I pay if I don’t rent out my Mallorca home?<\/h3>\n
Is rental income taxed differently for Americans?<\/h3>\n
Will I have to pay Spanish wealth tax?<\/h3>\n
Does buying property give me residency in Spain?<\/h3>\n
Do I still have to deal with US taxes on a home in Spain?<\/h3>\n