Annual Running Costs of Owning Property in Mallorca: The Complete Breakdown

Buying a property in Mallorca is the headline expense, but the ongoing costs of ownership are what determine whether your investment makes financial sense in the long run. From local taxes and insurance to utility bills and pool maintenance, the annual outgoings can range from a modest €3,000 for a small flat to well over €25,000 for a large villa with grounds. This guide breaks down every recurring cost, with realistic figures for 2026, so you can budget accurately before you buy.

IBI — The Annual Property Tax

The Impuesto sobre Bienes Inmuebles (IBI) is Spain’s equivalent of council tax or property tax. It is levied annually by the local town hall (ayuntamiento) based on the cadastral value (valor catastral) of the property — a government-assessed value that is typically well below the market value.

The IBI rate varies by municipality and by whether the property is on urban or rustic land. Typical rates in Mallorca range from 0.4% to 1.1% of the cadastral value. In practice, this translates to:

Property Type	Typical Annual IBI
2-bed apartment in Palma	€400 – €800
3-bed townhouse	€600 – €1,200
4-bed villa with pool	€1,000 – €2,500
Large finca on rustic land	€800 – €2,000

IBI is paid once a year, usually between September and November depending on the municipality. You can set up a direct debit (domiciliación bancaria) to avoid missing the payment — important because unpaid IBI accrues surcharges and can result in a charge being placed on the property.

Note for non-residents: If you do not rent out your property, you must also pay Impuesto sobre la Renta de No Residentes (IRNR) — a deemed income tax based on 1.1% of the cadastral value, taxed at 19% (EU residents) or 24% (non-EU). This typically adds €200–€600 per year for a mid-range property. For a full explanation of tax obligations, see our tax guide for property owners.

Basura — Rubbish Collection Tax

The tasa de basura (rubbish collection tax) is a fixed annual charge levied by the municipality. Unlike IBI, it is not based on property value — every property in the municipality pays a similar amount. Typical charges in Mallorca are:

• Residential property: €100 – €300 per year
• Varies by municipality: Palma tends to be higher; smaller rural municipalities lower
• Commercial properties: Pay higher rates depending on business type

Basura is usually billed separately from IBI and may be payable at a different time of year. Again, set up a direct debit to avoid missed payments.

Community Fees (Gastos de Comunidad)

If your property is in a building or urbanisation with shared areas, you will pay community fees to cover the maintenance of common elements: lifts, stairways, gardens, communal pool, external painting, insurance of the building structure, and a reserve fund for major works.

Community fees in Mallorca vary enormously depending on the development:

Type of Development	Typical Monthly Fee	Annual Total
Small apartment block (no lift, no pool)	€30 – €80	€360 – €960
Medium complex with pool and gardens	€100 – €250	€1,200 – €3,000
Luxury development with concierge, gym, etc.	€300 – €800+	€3,600 – €9,600+
Detached villa (no community)	€0	€0

Important: Before buying, ask for the community’s actas (minutes of meetings) and cuentas (financial statements) for the past 2–3 years. Check the reserve fund balance and whether any derramas (special assessments) have been approved or are pending. A poorly managed community with an empty reserve fund can hit you with unexpected special assessments of €5,000–€20,000 for roof repairs, lift replacement, or façade renovation.

Home Insurance (Seguro del Hogar)

Building insurance is mandatory if you have a mortgage, and strongly advisable even if you do not. A comprehensive home insurance policy in Mallorca typically covers:

• Building structure (fire, flood, storm damage, subsidence)
• Contents (theft, damage, accidental breakage)
• Third-party liability (someone injures themselves on your property)
• Water damage (a major source of claims in Spain)
• Legal defence and assistance

Typical annual premiums:

• Apartment: €200 – €500
• Townhouse: €350 – €700
• Villa with pool: €500 – €1,200
• High-value or luxury property: €1,200 – €3,000+

Spanish insurers include Mapfre, Zurich, AXA, and Allianz. Premiums vary by insurer, property value, location (flood risk zones cost more), and whether the property is permanently occupied or a holiday home (unoccupied properties cost more to insure).

Electricity (Electricidad)

Electricity in Spain is supplied by Endesa (the dominant provider in the Balearics) or alternative suppliers. Bills consist of two components:

• Fixed charge (término de potencia): Based on your contracted power capacity, measured in kW. A typical home has 5.75–10 kW contracted. This fixed element costs approximately €15–€40 per month regardless of consumption.
• Variable charge (término de energía): Based on actual kWh consumed. The regulated tariff (PVPC) fluctuates hourly; fixed-rate contracts offer predictability at a slight premium.

Typical annual electricity costs in Mallorca:

Property Type	Annual Cost (no solar)	With Solar Panels
2-bed apartment	€800 – €1,500	€400 – €800
3-bed townhouse	€1,200 – €2,200	€500 – €1,000
4-bed villa with pool	€2,000 – €4,500	€800 – €1,800

Air conditioning is the single biggest driver of electricity costs. A villa running multiple split units through July and August can easily consume €300–€500 per month in electricity. Investing in solar panels, good insulation, and an aerothermal (heat pump) system can dramatically reduce this — see our new build vs resale comparison for more on energy efficiency differences.

Water (Agua)

Mains water in Mallorca is supplied by the municipal water company (EMAYA in Palma, various concessionaires elsewhere). Bills include a fixed service charge plus a variable charge based on consumption:

• Typical annual cost (mains water): €200 – €600 for a household
• Pool filling: Adds significantly; filling a standard pool (40–60 m³) costs €150–€300 in water alone, plus ongoing top-ups
• Garden irrigation: Can double water bills if you have extensive planted areas

Mallorca’s water is hard (high calcium content) in most areas. Many homeowners install water softeners and reverse osmosis systems for drinking water, adding €300–€500 to initial setup costs plus €100–€200 per year in maintenance.

Properties on rustic land without mains water rely on wells and cisterns, with costs outlined in our guide to buying a finca.

Gas

Mallorca has no mains gas supply. Properties that use gas (for cooking, hot water, or heating) rely on bottled butane or propane, or bulk propane tanks:

• Butane bottle (12.5 kg): Approximately €15–€18 per bottle. A household using gas only for cooking might use one bottle every 4–6 weeks (€150–€250/year).
• Propane tank (bulk): Homes with gas heating may have a large propane tank (Repsol or Cepsa). Annual costs of €500–€1,500 depending on heating usage.
• Many properties are all-electric: Particularly newer builds, which use heat pumps instead of gas. This eliminates gas costs entirely.

Pool Maintenance

A swimming pool is a significant ongoing expense. The costs include:

• Pool service company: Weekly or fortnightly visits to test water chemistry, add chemicals, clean filters, check pumps. Cost: €100–€200 per month (€1,200–€2,400/year).
• Chemicals: Chlorine, pH regulators, algaecides, winterising products. If not included in the service contract: €300–€600/year.
• Electricity for pump and filtration: Running a pool pump 6–10 hours per day in summer adds €500–€1,000 per year to electricity bills.
• Water top-ups: Evaporation in Mallorca’s hot summers requires regular topping up: €100–€300/year.
• Repairs and equipment: Pump replacement (every 5–8 years, €500–€1,500), liner or tile repairs, filter replacement.

Total annual pool cost: €2,000–€4,000 for a standard private pool, maintained year-round. Salt-chlorination systems reduce chemical costs but have higher upfront equipment costs.

Garden and Grounds Maintenance

If you have a garden, terrace, or grounds, maintenance is an ongoing cost. Mallorca’s climate allows year-round growth but also requires regular watering in summer and pruning in winter:

• Small garden (flat or townhouse): €50–€150/month (€600–€1,800/year) for a gardener visiting weekly or fortnightly.
• Medium garden (villa): €150–€350/month (€1,800–€4,200/year) including lawn care, hedge trimming, irrigation maintenance, and seasonal planting.
• Large grounds (finca): €300–€800+/month (€3,600–€9,600/year) for extensive gardens, olive groves, fruit trees, and land management.

Choosing drought-resistant Mediterranean planting (bougainvillea, lavender, rosemary, olive trees, succulents) over lawns and tropical plants dramatically reduces both water and maintenance costs. A well-designed Mediterranean garden can look stunning with minimal upkeep.

Property Management (for Non-Residents)

If you are not living in Mallorca full-time, a property management company can take care of your home in your absence. Services typically include:

• Regular inspections (checking for leaks, storm damage, security)
• Coordinating maintenance and repairs
• Key-holding and emergency response
• Managing utility bills and tax payments
• Preparing the property for your arrivals
• Pool and garden oversight

Typical costs:

• Basic key-holding and monthly inspections: €100–€200/month (€1,200–€2,400/year)
• Full property management: €200–€500/month (€2,400–€6,000/year)
• Rental management (if you holiday-let): 15–25% of gross rental income, covering guest check-in/out, cleaning, laundry, maintenance coordination, and guest communication

Other Recurring Costs

A few additional annual expenses that are easy to overlook:

• Fiscal representative (non-residents): Spanish tax law requires non-residents to appoint a fiscal representative or file taxes themselves. An accountant or gestoría handling your annual tax returns typically charges €200–€500/year.
• Alarm system: Monitored alarm systems (Securitas Direct / Verisure, Prosegur) cost €30–€60/month (€360–€720/year).
• Internet and TV: Fibre broadband is widely available across Mallorca. Packages with TV typically cost €40–€70/month (€480–€840/year).
• Pest control: Periodic treatment for cockroaches, ants, and processionary caterpillars (dangerous to dogs): €150–€400/year.
• Septic tank maintenance (fincas): Annual emptying and inspection of septic tanks (fosa séptica): €200–€400.

Realistic Annual Cost Totals

Here is what you can realistically expect to pay per year for three typical property types in Mallorca, assuming non-resident ownership:

Cost Item	2-Bed Flat (Palma)	3-Bed Townhouse	4-Bed Villa with Pool
IBI	€500	€900	€1,800
Basura	€150	€200	€250
Non-resident deemed income tax	€250	€350	€500
Community fees	€1,800	€1,200	€0
Insurance	€350	€500	€900
Electricity	€1,000	€1,600	€3,200
Water	€250	€350	€500
Gas	€150	€200	€0 (all-electric)
Pool maintenance	—	—	€2,800
Garden	—	€1,200	€3,000
Property management	€1,500	€2,000	€3,600
Fiscal representative	€300	€300	€400
Internet	€500	€500	€600
Alarm	€400	€450	€500
TOTAL	€7,150	€9,750	€18,050

These figures assume the property is used as a holiday home (not permanently occupied) and is not rented out. If you let the property, rental income can offset these costs but introduces additional expenses (rental management fees, tourist tax, higher utility consumption, wear and tear).

For a large luxury villa with extensive grounds, a heated pool, full-time gardener, and comprehensive property management, annual costs can easily exceed €25,000–€35,000.

How to Reduce Running Costs

A few practical strategies for keeping annual costs down:

• Install solar panels: With Mallorca’s abundant sunshine, a 5–10 kW photovoltaic system (costing €6,000–€15,000 installed) can slash electricity bills by 50–70% and typically pays for itself within 5–7 years.
• Choose Mediterranean landscaping: Drought-resistant plants require far less water and maintenance than lawns and tropical gardens.
• Negotiate community fees: Attend owners’ meetings, vote on budgets, and push for competitive quotes on communal maintenance contracts.
• Compare insurance annually: Spanish insurance premiums vary widely between providers. Use a broker or comparison service to ensure you are not overpaying.
• Set up direct debits for all taxes: Avoid surcharges from missed payments, especially if you are not in Spain year-round.

Understanding the full annual cost of ownership is essential when evaluating any property purchase. A “bargain” villa with a large garden, ageing pool, and high community fees may cost more to run than a more expensive but modern, efficient apartment. Factor running costs into your mortgage and budget calculations from the start.