05 · The Annual Running Costs of a Mallorca Property
*A property costs money even when it sits empty — here you'll see, as a buyer, what you need to budget for year after year, with no rental income involved at all.*
Before you sign on a property, it pays to take a sober look at the ongoing burden. The purchase price and acquisition costs are one thing; quite another is the recurring annual load of taxes, fees and community charges. From a buyer's perspective, this is precisely the figure that determines what it really costs you to hold the asset — and it can be calculated cleanly in advance.
IBI (Impuesto sobre Bienes Inmuebles) — the property tax#
The IBI is a municipal tax that falls due every year. It is calculated from the valor catastral (cadastral value) multiplied by the local rate, the tipo de gravamen. The governing law is RDLeg 2/2004 (Ley de Haciendas Locales).
- On Mallorca the rate sits at around ~0.5 % of the
valor catastralon average; across Spain the range runs from 0.4–1.3 %. Because thevalor catastralis, as a rule, set well below actual market value, the burden stays manageable — in practice this usually means €500–2,000/year. - Examples of
urbana(urban) rates: Palma 0.445 % ✅ — the lowest rate among Spain's major cities —, Calvià 0.495 % ✅ (Ordenanza 2025), Andratx ~0.495 % and Alaró ~0.716 %. 🔴 Note: the specific IVTM final amounts for Palma/Calvià sit inside the 403-blocked Ordenanza PDFs and must be verified with the municipality. - Due date: collected at municipal level; in Palma, for example, between September and December, while Calvià debits directly through the town hall (not via the ATIB).
Who bears the IBI in the year of sale? ⚖️ STS 409/2016 ✅#
This question is worth real money to you when buying. According to STS 409/2016 of 15.06.2016 (rec. 2110/2014) ✅, the party liable for the IBI towards the municipality is whoever was the owner on 1 January — i.e. the seller. Absent any agreement to the contrary, however, the seller may pass the amount on to the buyer on a pro-rata basis (pro rata from the handover date). Practical tip from the buyer's side: have the split expressly recorded in the escritura (deed), otherwise a dispute over the exact share will arise.
Tasa de basura / recogida de residuos — the rubbish-collection fee#
The rubbish fee is also municipal and is frequently due together with the IBI. 🟡 The norm is ~€100–200/year; in Palma around €209.72/year 🟡 (reference household under EMAYA's "Tarifa Justa"), and in Calvià the tariff was raised by +23 % in 2025. 🔴 The exact tariff bands sit inside the blocked Ordenanzas and must be verified with the municipality. Note: the Spain-wide reform (Ley 7/2022) is pushing these fees upwards in many places.
Gastos de comunidad (homeowners' association) + Ley de Propiedad Horizontal (Ley 49/1960)#
This item only concerns you if you buy an apartment or a development with common property. In quality developments the contributions run at ~€100–300/month, higher again in luxury resorts; for a freestanding finca (country house) they amount to €0.
derramais a special levy for larger works — it falls on whoever is the owner at the time it becomes due.- The
certificado de estar al corriente de pago(certificate of being up to date on payments) documents the standing of debts towards the association and is a mandatory document before notarisation (Art. 9.1.e LPH). Why this is critical for you: the buyer is liable, through the property itself, for any outstanding community debts of the current year plus the 3 preceding years. - Also take a look at the
estatutos(statutes) — they can prohibit tourist letting (→ Ch. 11/13).
IRNR — renta imputada (the notional own-use tax for non-residents)#
Little known, but decisive for international owners: even a property that is not let at all triggers IRNR for the non-resident, declared annually via the Modelo 210. The calculation runs in two steps:
1. The tax base is 1.1 % of the valor catastral, provided this has been revised within the last 10 years — otherwise 2 % (for older values). 2. A rate of 19 % is then applied for EU/EEA residents, or 24 % for third countries (UK, USA, Switzerland).
Worked example: valor catastral €200,000 × 1.1 % = €2,200, of which × 19 % = €418/year.
Other recurring items at a glance#
Alongside these there are smaller but regular items that no honest annual budget should omit:
| Item | Order of magnitude |
|---|---|
seguro de hogar (buildings/contents insurance) | ~€300–800/year (villa more) |
| Utilities (electricity/water standing charges) | usage-dependent |
vado (driveway access permit) | ~€30–100/year (municipal) 🔴 |
| Dog: no classic dog tax, but mandatory liability insurance (Ley 7/2023) | ~€50–100/year |
❓ FAQ#
Are there taxes to pay on Mallorca even if I don't let the property? Yes. As a non-resident you pay IRNR on the notional own-use (renta imputada, 1.1 %/2 % of the valor catastral × 19 %/24 %) — on top of that come IBI, the rubbish fee and, where applicable, the 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