The Dream of Living in Mallorca

Mallorca has become far more than a holiday destination. Thousands of Germans, Brits and other Europeans have made the Balearic island their new home. Whether you are a retiree, digital nomad, entrepreneur or a family with children – the reasons for starting a new life in Mallorca are as diverse as its residents. However, the move to Spain comes with bureaucratic hurdles that require careful preparation.

This guide provides a comprehensive overview of everything you need to know when moving to Mallorca – from the NIE number to finding accommodation, taxes and health insurance.

First Steps: What You Need to Know Before Moving

The NIE Number – Your Most Important Document

The NIE (Número de Identificación de Extranjero) is your foreigner identification number and the first document you will need in Spain. Without a NIE, you cannot open a bank account, sign a rental contract or pay taxes. You can apply at the Policía Nacional or the Oficina de Extranjería in Palma.

You will need: passport, completed EX-15 form, proof of purpose (employment contract, property purchase etc.) and a fee of approximately 12 euros. Processing typically takes 1-4 weeks.

Empadronamiento – Registering with the Town Hall

The Empadronamiento is the registration of your address with the local council (Ayuntamiento). It is mandatory for everyone living in Spain and a prerequisite for many other administrative procedures. You will need your passport, NIE and a rental contract or proof of ownership.

Residency – Your Right to Stay

As an EU citizen, you have the right to live and work in Spain. If you stay longer than 3 months, you must register with the Registro Central de Extranjeros. You will receive a green certificate (Certificado de Registro de Ciudadano de la Unión), commonly known as the “Residencia”.

Housing in Mallorca

Rental Market and Prices

The rental market in Mallorca is particularly tight in Palma and popular coastal towns. A 2-bedroom apartment in Palma costs between 900 and 1,500 euros per month. In more rural areas like Inca, Manacor or Llucmajor, prices are significantly lower.

Tip: Use our classifieds portal to find properties directly from private owners – often cheaper than through estate agents.

Buying Property

The property market in Mallorca is attractive but not cheap. A finca in the interior starts at around 300,000 euros, apartments in Palma from 200,000 euros. Additional costs include transfer tax (ITP, 8-13%), notary fees and land registry charges.

Work and Finances

Taxes in Spain

Anyone spending more than 183 days per year in Spain becomes a full tax resident. This means your worldwide income is taxed in Spain. Income tax (IRPF) is progressive, ranging from 19% to 47%. The Balearic Islands also levy a wealth tax.

Important: Double taxation agreements between your home country and Spain prevent being taxed twice – but you must actively manage this. A local tax advisor who speaks your language is strongly recommended.

Opening a Bank Account

With your NIE number, you can open an account at any Spanish bank. Popular banks for expats include CaixaBank, Sabadell and BBVA. Many expats also use online banks like N26 or Wise in parallel.

Working as a Freelancer (Autónomo)

Self-employed workers in Spain register as Autónomo. Monthly social security contributions start at approximately 230 euros (income-dependent). Registration is done through the Seguridad Social and the Agencia Tributaria.

Health and Insurance

Health Insurance

As an employee or Autónomo in Spain, you are covered by the public health system through the Seguridad Social. Retirees can transfer their home country health insurance to Spain using the S1 form. Those without access to the public system need private health insurance – costs start from around 80-150 euros per month.

English-Speaking Doctors in Mallorca

Mallorca has numerous English-speaking doctors, dentists and specialists, mostly located in and around Palma. The major private clinics (Clínica Rotger, Hospital Quirónsalud) also have multilingual staff.

Daily Life and Lifestyle

International Schools

For families with children, Mallorca offers several international and bilingual schools. Options include the Baleares International College, the Agora Portals International School and the Eurocampus Deutsche Schule (German School) in Palma.

Driving Licence and Car

EU driving licences are valid in Spain. After registering your residency, you should exchange your licence at the DGT (Dirección General de Tráfico) within 2 years. You can import your car from abroad – but be aware of customs and tax regulations.

Bringing Your Pet

Dogs and cats can easily be brought to Mallorca. You will need an EU pet passport, a valid rabies vaccination and a microchip. Standard EU regulations apply when travelling by ferry or plane.

Mallorca as Your New Home

Life in Mallorca offers a unique combination of Mediterranean climate, high quality of life and a large international community. The island has far more to offer than beaches and sunshine: a growing food scene, stunning nature for hiking and cycling, charming villages and excellent infrastructure.

At mallorca-portal.com you will find everything for your start on the island – from classifieds for furniture and apartments to contacts and tips from fellow expats.

Further Reading

Our detailed guides on all key topics for moving to Mallorca:

Bureaucracy & Administration

Finances & Taxes

Health

Property & Housing

Daily Life & Family

Leisure & Lifestyle