Mallorca has long been a favorite destination for European buyers. Now, more and more Americans are discovering the island as a place not only for vacation but also for property investment. With its Mediterranean lifestyle, international community and strong real estate market, Mallorca offers unique opportunities – but also some challenges compared to the US property market.

As an experienced real estate and financial advisor on the island, I will guide you through the key points you need to know as a US buyer. For property listings and tailored advice, visit selling-mallorca.com.

Why Mallorca Attracts US Buyers

• Mediterranean lifestyle combined with excellent infrastructure.
• High-quality healthcare and international schools.
• Direct flight connections via Madrid, Barcelona or major European hubs.
• Exclusive real estate portfolio: sea-view villas, historic fincas and modern apartments.

Unlike many US markets that are mostly national, Mallorca is an international buyers’ market. Strong demand from Germany, Scandinavia, the UK and Switzerland ensures long-term stability and resilience.

Taxes: What Americans Need to Know

Double Taxation

As a US citizen, you are taxed on worldwide income. Income or capital gains from your Spanish property must be declared both in Spain and in the US. The US-Spain double taxation treaty reduces, but does not eliminate, double taxation.

Key Spanish Taxes

• IBI (local property tax) – annual, based on cadastral value.
• Non-resident income tax (IRNR) – even if not rented, a deemed rental value is taxed (~24% for US citizens).
• Capital gains tax – 19% to 28% when selling.
• Wealth tax – applies to non-residents above €700,000 net assets (regional rules apply in the Balearics).

FATCA Compliance

Due to the Foreign Account Tax Compliance Act, Spanish banks are obliged to report US account holders. This makes financing more complex and time-consuming for Americans.

Residency and Visa Options

• 90-day rule: US citizens may stay up to 90 days within a 180-day period without a visa.
• Golden Visa: By investing €500,000+ (without financing), Americans and their families can obtain Spanish residency and free movement within the Schengen area.
• Non-lucrative visa: For those with sufficient passive income, but without the right to work in Spain.

Unlike in the US, where property ownership does not affect residency, in Spain your investment can be the key to a European residence permit.

Comparing Mallorca with the US Real Estate Market

1. Buyer Profile
   • US: Primarily domestic buyers.
   • Mallorca: Highly international demand, stabilizing the market.
2. Financing
   • US: Flexible mortgage products, easier access.
   • Spain: Higher down payments (30–40%) and stricter compliance for US citizens.
3. Rental Market
   • US: Short-term rentals (Airbnb, vacation homes) widely accepted.
   • Mallorca: Strict licensing requirements; not every property can be rented to tourists.
4. Property Types
   • US: Modern homes, large plots, new builds.
   • Mallorca: Historic fincas, Mediterranean villas, cultural heritage properties.

Pros and Cons for US Buyers

Advantages

• Access to Golden Visa and EU residency.
• Strong, international demand ensures stable property values.
• Unique Mediterranean lifestyle with cultural and historical value.
• Excellent long-term investment potential.

Challenges

• Double taxation obligations.
• Strict rental regulations compared to the US.
• Complex financing due to FATCA.
• Residency limited without a visa or Golden Visa.

Practical Tips for US Investors

1. Consult tax advisors in both the US and Spain before purchasing.
2. Consider the Golden Visa for long-term residency.
3. Arrange financing early – expect longer bank processes.
4. Check rental regulations carefully if you plan to generate income.
5. Work with a local expert familiar with US buyers’ needs.

Conclusion: Mallorca as Your Gateway to Europe

Mallorca is more than just a holiday island – it is a stable, international real estate market that offers lifestyle, security and long-term value. For US buyers, the combination of property investment and European residency through the Golden Visa makes Mallorca especially attractive.

👉 Ready to explore your options? Visit selling-mallorca.com for exclusive listings and get in touch with me for personalized advice on your Mallorca investment journey.