Palma de Mallorca real estate market — prices, rental yield and trend

• Average price: $6,179 / m²
• Gross rental yield: 4.27%
• 12-month price change (USD): -0.13%
• Net rental yield: 3.46%
• Transaction cost: 15.3%
• Price basis: local-market average

Residential property in Palma de Mallorca averages $6,179 per square metre. In dollar terms the market has barely moved over the last twelve months (-0.1%). That makes it the 40th most expensive of the 236 markets in the set.

What a buyer pays in Palma de Mallorca

The $6,179 figure is a local-market average across all residential property types: a flat in a prime district sits well above it, an older unit on the edge of the market well below. Buying costs — transfer tax or stamp duty, notary, registration and agency — come to about 15.3% of the price here. On a 100 m² apartment at the average price that is roughly $94,538 on top of the $617,897 purchase price. That is above the 10.3% median across the set — the entry cost is part of the investment case here. Against the Spain national average of $3,390, Palma de Mallorca carries a 82.3% premium — the gap between this market and the country as a whole. Among the other Spain markets we track, Benidorm at $4,286 is 44.2% cheaper, and Seville at $3,287 is 88% cheaper.

What it earns

A square metre lets for about $22.0 a month. Against a purchase price of $6,179 per square metre that is 4.3% gross, before tax. Both figures come from the same source and the same period, so you can check the arithmetic yourself. It ranks 199th of 269 markets by gross yield. Rental income is taxed at 19–24% — the rate is not a single number here. That is the difference between 3.3% and 3.5% net on the same property. The 3.5% net figure we publish uses 19%.

How the tax works. 19% or 24% depending on where the owner is tax-resident, not on the rent level. Owners resident in the EU/EEA pay 19% on net income after deductible expenses (TRLIRNR arts. 24.6 and 25.1.a); owners resident outside the EU/EEA pay 24% on the gross rent with no deductions (art. 24.1). The 50–60% long-term letting relief of the resident regime does not apply to non-residents. Source: agenciatributaria.gob.es.

Who can buy in Palma de Mallorca

Freehold, no restrictions. That is the rule a foreign buyer meets first, not legal advice — check the current position locally before you commit.

How this figure is built

The price figure for Palma de Mallorca is built from asking prices from listings. It was last refreshed on 2026-10-17. We rate our confidence in this market’s data medium: the series is usable, but thinner or less current than our best-covered markets. We recompute every market the same way, which is what lets Palma de Mallorca be compared with a country average or another city.

Sources: idealista sale · idealista.com. Snapshot: 2026-10-17.