Authored by the expert who managed and guided the team behind the Spain Property Pack
Yes, the analysis of Palma de Mallorca's property market is included in our pack
Everything you need to know about rental yields for apartments in Palma de Mallorca, written for individual foreign buyers looking at early 2026.
We cover gross and net yields, typical rents by apartment size, which neighborhoods perform best, and all the costs that will eat into your returns.
We constantly update this blog post so you always have the freshest data on Palma de Mallorca rental yields.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Palma de Mallorca.
What rental yields can I realistically get from an apartment in Palma de Mallorca?
What's the average gross rental yield for apartments in Palma de Mallorca as of 2026?
As of early 2026, the average gross rental yield for apartments in Palma de Mallorca sits at around 4.3%, which is calculated by dividing annual rent by the purchase price.
In practice, most apartment investments in Palma de Mallorca fall within a gross yield range of 3.0% to 5.2%, depending heavily on which neighborhood you buy in.
The main factor that causes gross rental yields to vary so much in Palma de Mallorca is the gap between "postcard" coastal locations and central working-class districts: areas like Portixol command premium purchase prices that far outpace the rent increases, while neighborhoods like Las Avenidas offer lower buy-in costs with solid tenant demand from local professionals.
Compared to other Spanish provincial capitals, Palma de Mallorca ranks among the lowest for rental yields because property prices have surged faster than rents due to the island's scarcity of land and strong foreign buyer interest, making it similar to Barcelona rather than inland cities like Seville or Valencia where yields can reach 5.5% or more.
What's the average net rental yield for apartments in Palma de Mallorca as of 2026?
As of early 2026, the average net rental yield for apartments in Palma de Mallorca typically lands between 2.7% and 3.4%, once you subtract all operating costs from the gross rent.
Most apartment investors in Palma de Mallorca can realistically expect net yields around 2.8% to 3.2% if they use a property manager, or closer to 3.3% to 3.4% if they self-manage and keep community fees low.
The single biggest expense category that reduces gross yield to net yield in Palma de Mallorca is the "comunidad" fee, which covers shared building costs like lifts, hallways, and sometimes pools or concierges, and this can be surprisingly high in older Palma buildings that require constant maintenance on facades, plumbing, and common areas.
By the way, you will find much more detailed data in our property pack covering the real estate market in Palma de Mallorca.
What's the typical rent-to-price ratio for apartments in Palma de Mallorca in 2026?
As of early 2026, the typical rent-to-price ratio for apartments in Palma de Mallorca is around 4.3%, meaning it takes roughly 23 years of gross rent to equal the purchase price.
Most apartment transactions in Palma de Mallorca show rent-to-price ratios ranging from about 3.0% in premium coastal areas to 5.2% in more accessible central neighborhoods.
The apartment categories and neighborhoods with the highest rent-to-price ratios in Palma de Mallorca are smaller units (studios and 1-beds) in working-class or transit-connected districts like Las Avenidas, Bons Aires, and Pere Garau, where purchase prices remain moderate but rental demand from young professionals and students stays consistently strong.
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How much rent can I charge for an apartment in Palma de Mallorca?
What's the typical tenant budget range for apartments in Palma de Mallorca right now?
The typical monthly tenant budget range for renting an apartment in Palma de Mallorca in early 2026 spans from around 900 euros to 2,500 euros (roughly $1,060 to $2,950 USD), depending on apartment size and location.
For tenants targeting mid-range apartments in Palma de Mallorca, the budget typically falls between 1,400 and 2,000 euros per month ($1,650 to $2,350 USD), which gets you a decent 2-bedroom in a good neighborhood with reasonable transport links.
For tenants seeking high-end or luxury apartments in Palma de Mallorca, budgets start around 2,500 euros and can easily exceed 4,000 euros per month ($2,950 to $4,700+ USD), especially in prestige areas like Son Vida, Bonanova, or waterfront Portixol where sea views and premium finishes are expected.
We have a blog article where we update the latest data about rents in Palma de Mallorca here.
What's the average monthly rent for a 1-bed apartment in Palma de Mallorca as of 2026?
As of early 2026, the average monthly rent for a 1-bed apartment in Palma de Mallorca is around 1,100 euros ($1,300 USD), though this varies significantly by neighborhood and condition.
At the entry level, a decent 1-bed apartment in Palma de Mallorca rents for around 850 to 1,000 euros per month ($1,000 to $1,180 USD), and these are typically found in outer districts like Llevant or Son Gotleu, often in older buildings without a lift but still clean and functional.
In the mid-range, a typical 1-bed apartment in Palma de Mallorca commands 1,050 to 1,300 euros per month ($1,240 to $1,530 USD), which gets you something in neighborhoods like Camp Redó or Son Armadams with an elevator, updated kitchen, and good natural light.
At the high end, a luxury 1-bed apartment in Palma de Mallorca fetches 1,400 to 1,800 euros per month ($1,650 to $2,120 USD), and these are typically renovated units in Santa Catalina, the Old Town fringes, or Portixol with designer finishes, terraces, or partial sea views.
What's the average monthly rent for a 2-bed apartment in Palma de Mallorca as of 2026?
As of early 2026, the average monthly rent for a 2-bed apartment in Palma de Mallorca is around 1,850 euros ($2,180 USD), making it the most popular size for couples and small families.
At the entry level, a decent 2-bed apartment in Palma de Mallorca rents for around 1,400 to 1,600 euros per month ($1,650 to $1,885 USD), typically located in areas like Son Ferriol or Arenal edge, often in functional blocks from the 1980s or 1990s with basic communal areas.
In the mid-range, a typical 2-bed apartment in Palma de Mallorca commands 1,700 to 2,100 euros per month ($2,000 to $2,475 USD), which gets you something in sought-after neighborhoods like Es Forti or the edges of Santa Catalina, usually with a balcony, elevator, and modern bathroom.
At the high end, a luxury 2-bed apartment in Palma de Mallorca fetches 2,200 to 2,800 euros per month ($2,590 to $3,300 USD), and these are typically found in the Old Town, Paseo Maritimo waterfront, or Bonanova, featuring high ceilings, premium appliances, and often a private terrace or rooftop access.
What's the average monthly rent for a 3-bed apartment in Palma de Mallorca as of 2026?
As of early 2026, the average monthly rent for a 3-bed apartment in Palma de Mallorca is around 2,700 euros ($3,180 USD), though supply is tighter than for smaller units.
At the entry level, a decent 3-bed apartment in Palma de Mallorca rents for around 2,100 to 2,400 euros per month ($2,475 to $2,830 USD), typically found in residential neighborhoods like Pere Garau or Son Rapinya, often in larger family-oriented buildings with community gardens or playgrounds.
In the mid-range, a typical 3-bed apartment in Palma de Mallorca commands 2,500 to 3,000 euros per month ($2,950 to $3,535 USD), which gets you something in areas like Bons Aires or the quieter parts of Son Armadams, usually with parking, storage, and a proper separate kitchen.
At the high end, a luxury 3-bed apartment in Palma de Mallorca fetches 3,200 to 4,500 euros per month ($3,770 to $5,300 USD), and these are typically found in Son Vida, Bonanova, or prime Old Town locations, featuring concierge services, underground parking, and expansive living spaces with premium materials throughout.
How fast do well-priced apartments get rented in Palma de Mallorca?
A well-priced apartment in Palma de Mallorca typically gets rented within 2 to 4 weeks, with prime units in high-demand neighborhoods often going in under 2 weeks.
The typical vacancy rate for apartments in Palma de Mallorca is low, generally ranging from 3% to 6% annually for long-term rentals, reflecting the persistent supply squeeze across the city.
The main factors that cause some apartments to rent faster than others in Palma de Mallorca include proximity to the Intermodal transit station (especially areas like Bons Aires), having air conditioning (essential for Palma summers), and being located in neighborhoods popular with expats like Santa Catalina or Portixol where tenants actively search and compete for limited stock.
And if you want to know what should be the right price, check our latest update on how much an apartment should cost in Palma de Mallorca.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Spain versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Which apartment type gives the best yield in Palma de Mallorca?
Which is better for yield between studios, 1-bed, 2-bed and 3-bed apartments in Palma de Mallorca as of 2026?
As of early 2026, studios and 1-bed apartments in Palma de Mallorca typically offer the best rental yields because they command the highest rent per square meter while keeping purchase prices more accessible.
In Palma de Mallorca, the typical gross rental yield range by apartment type is roughly 4.5% to 5.5% for studios, 4.2% to 5.0% for 1-beds, 3.8% to 4.5% for 2-beds, and 3.2% to 4.0% for 3-beds, though location matters more than bedroom count.
The main reason smaller apartments tend to outperform in Palma de Mallorca is that the tenant pool is dominated by single professionals, digital nomads, and young couples who have been priced out of buying and will pay premium rents for compact, well-located units near Santa Catalina cafes or Paseo Maritimo nightlife, while families needing 3-beds have more negotiating power and push back harder on price.
Which features are best if you want a good yield for your apartment in Palma de Mallorca?
The features that most positively impact rental yield for apartments in Palma de Mallorca include having an elevator (essential in a city with many older walk-up buildings), air conditioning (non-negotiable for Palma's hot summers), an efficient layout with minimal wasted corridor space, and being within walking distance to the Intermodal station or Santa Catalina market.
In Palma de Mallorca, middle floors (2nd to 4th) tend to rent easiest because they balance natural light and ventilation against the effort of climbing stairs in buildings without lifts, while ground floors can be harder to rent unless they have a private patio or courtyard access.
Apartments with balconies or terraces in Palma de Mallorca command noticeably higher rents, often 50 to 100 euros more per month, because outdoor space is highly valued in the Mediterranean climate and can be the deciding factor for tenants choosing between similar units.
Building features like elevators and concierge services in Palma de Mallorca do raise rents enough to offset higher service charges in most cases, but parking is a wildcard: it adds real value in central neighborhoods where street parking is impossible, yet the extra purchase cost may not always translate into proportionally higher rent.
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Which neighborhoods give the best rental demand for apartments in Palma de Mallorca?
Which neighborhoods have the highest rental demand for apartments in Palma de Mallorca as of 2026?
As of early 2026, the neighborhoods with the highest rental demand for apartments in Palma de Mallorca are Santa Catalina, Bons Aires, the edges of the Old Town (Ciutat Antiga), Son Armadams, and Portixol, all of which combine lifestyle appeal with practical access to jobs and transit.
The main demand driver that makes these neighborhoods attractive to apartment tenants in Palma de Mallorca is walkability to the city's main employment hubs, restaurants, and the Intermodal transit station, combined with the Mediterranean lifestyle that expats and digital nomads specifically seek out when relocating to the island.
In these high-demand Palma de Mallorca neighborhoods, well-priced apartments typically rent within 10 to 15 days, compared to 20 to 25 days or more in less connected areas like Llevant or the inland edges of the city.
One emerging neighborhood gaining rental demand momentum in Palma de Mallorca is Son Espanyolet, located between the center and Son Armadams, where younger professionals are discovering good-quality apartments at slightly lower prices than Santa Catalina while still being a short walk from the action.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Palma de Mallorca.
Which neighborhoods have the highest yields for apartments in Palma de Mallorca as of 2026?
As of early 2026, the neighborhoods with the highest rental yields for apartments in Palma de Mallorca are Las Avenidas (around 5.2% gross), Playa de Palma (around 4.8%), and Es Forti/Son Cotoner/Son Dameto (around 4.5%), all of which offer solid rental demand without the premium purchase prices of coastal hotspots.
The typical gross rental yield range in these top-yielding Palma de Mallorca neighborhoods spans from about 4.5% to 5.2%, compared to just 3.0% to 3.9% in prestige areas like Portixol, Bonanova, or the waterfront Paseo Maritimo strip.
The main reason these neighborhoods offer higher yields than others in Palma de Mallorca is that they attract steady tenant demand from local workers, hospital staff, and service industry employees who need affordable housing near the center, while foreign buyers and lifestyle seekers drive up prices in "postcard" coastal areas without proportionally increasing rents.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Spain. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
Should I do long-term rental or short-term rental in Palma de Mallorca?
Is short-term rental legal for apartments in Palma de Mallorca as of 2026?
As of early 2026, short-term tourist rentals for apartments in Palma de Mallorca are heavily regulated under the Balearic ETV (Estancias Turisticas en Viviendas) framework, and in practice, the city has moved to block new tourist rental licenses in most residential areas.
The main legal restrictions for operating a short-term rental apartment in Palma de Mallorca include needing a valid ETV license before advertising or hosting guests, meeting specific building and safety requirements, and ensuring your building's community of owners has not voted to prohibit tourist rentals under recent amendments to horizontal property law.
Registration and licensing requirements for Airbnb-style rentals in Palma de Mallorca involve applying to the Consell de Mallorca, appearing in the official tourism registry (CENS), displaying your license number in all listings, and complying with local tax obligations including the tourist tax; buying an apartment and expecting to obtain a new STR license in Palma is now high-risk and often not feasible.
What's the gross yield difference short-term vs long-term in Palma de Mallorca in 2026?
As of early 2026, short-term rentals in Palma de Mallorca can potentially generate 1.3 to 2.0 times the gross income of long-term rentals, but this higher income comes with significantly more complexity, costs, and legal uncertainty.
The typical gross yield range for short-term rentals in Palma de Mallorca is around 6% to 8% for licensed, well-managed units in tourist-friendly locations, compared to the 4.0% to 4.5% gross yield for standard long-term rentals in the same areas.
The main additional costs that reduce the net yield advantage of short-term rentals in Palma de Mallorca include platform fees (typically 3% to 15% of booking value), frequent professional cleaning between guests, higher utility bills, guest supplies and restocking, property management if you are not local (often 20% to 25% of revenue for full-service STR management), and more intensive maintenance due to higher wear and tear.
To outperform a long-term rental in Palma de Mallorca, a short-term rental generally needs to achieve at least 55% to 65% occupancy at market rates, and if you factor in all the extra costs and management effort, many amateur landlords find that long-term renting delivers similar net returns with far less hassle and legal risk.
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What costs will eat into my net yield for an apartment in Palma de Mallorca?
What are building service charges as a % of rent in Palma de Mallorca as of 2026?
As of early 2026, the typical building service charge (comunidad fee) for apartments in Palma de Mallorca runs between 6% and 12% of monthly rent, which translates to roughly 80 to 200 euros per month ($95 to $235 USD) for an average apartment.
The realistic range of building service charges in Palma de Mallorca spans from around 50 euros per month ($60 USD) for simple walk-up buildings with minimal common areas, up to 250 euros per month ($295 USD) or more for buildings with lifts, pools, concierge services, or extensive gardens.
The services and building features that typically justify higher-than-average service charges in Palma de Mallorca include older buildings with ongoing facade restoration work (very common in the historic center), buildings with multiple lifts serving many floors, and complexes with heated pools or 24-hour security, which are especially common in areas like Son Armadams and Bonanova.
What annual maintenance budget should I assume for an apartment in Palma de Mallorca right now?
A typical annual maintenance budget for an apartment in Palma de Mallorca should be around 0.6% to 1.0% of the property's value, which for a 350,000 euro apartment means setting aside roughly 2,100 to 3,500 euros per year ($2,475 to $4,125 USD).
The realistic range of annual maintenance costs in Palma de Mallorca varies from around 1,500 euros per year ($1,770 USD) for newer or recently renovated apartments, up to 5,000 euros or more ($5,900 USD) for older buildings in the historic center that require regular plumbing, electrical, or humidity-related repairs.
The most common maintenance expenses apartment owners face annually in Palma de Mallorca include air conditioning servicing and filter replacement (essential given the salty sea air), boiler and water heater maintenance, repainting and humidity treatment for walls (Palma's coastal climate accelerates wear), and appliance repairs or replacements in furnished rental units.
What property taxes should I expect for an apartment in Palma de Mallorca as of 2026?
As of early 2026, the typical annual property tax (IBI) for an apartment in Palma de Mallorca works out to roughly 0.20% to 0.40% of the property's market value, which for a 350,000 euro apartment means approximately 700 to 1,400 euros per year ($825 to $1,650 USD).
The realistic range of property taxes in Palma de Mallorca varies from around 400 euros per year ($470 USD) for smaller apartments in less central areas, up to 2,000 euros or more ($2,360 USD) for larger or better-located properties with higher cadastral values.
Property taxes in Palma de Mallorca are calculated based on the "valor catastral" (cadastral value), which is an administrative valuation set by the town hall and is typically much lower than the actual market value, then multiplied by the municipal tax rate which ranges from about 0.4% to 1.1% depending on the zone.
There are some property tax reductions available in Palma de Mallorca, including discounts for large families, but these are limited, and most foreign individual investors will pay the standard rate without significant exemptions.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Palma de Mallorca.
How much does landlord insurance cost for an apartment in Palma de Mallorca in 2026?
As of early 2026, the typical annual landlord insurance cost for an apartment in Palma de Mallorca is around 200 to 350 euros per year ($235 to $410 USD), covering standard risks like fire, water damage, and third-party liability.
The realistic range of annual landlord insurance costs in Palma de Mallorca spans from around 150 euros ($175 USD) for basic coverage on a small apartment, up to 500 euros or more ($590 USD) if you add rent default protection, legal expenses coverage, or insure a higher-value property with premium contents.
What's the typical property management fee for apartments in Palma de Mallorca as of 2026?
As of early 2026, the typical property management fee for long-term rental apartments in Palma de Mallorca is around 8% to 10% of monthly rent collected, which for a 1,500 euro per month apartment means roughly 120 to 150 euros ($140 to $175 USD) going to your manager each month.
The realistic range of property management fees in Palma de Mallorca spans from around 6% for light-touch services on a stable tenancy, up to 12% or more for full-service management including tenant finding, inspections, repairs coordination, and re-letting when vacancies occur.
Services typically included in standard property management fees in Palma de Mallorca cover rent collection, basic tenant communication, coordinating routine maintenance, handling utility issues, and representing you at building community meetings, though tenant-finding fees and major repairs coordination are often charged separately.
We made this infographic to show you how property prices in Spain compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Palma de Mallorca, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| idealista Sale Price Index | Spain's largest property portal with consistent, documented methodology. | We used it as our baseline for purchase prices per sqm in Palma de Mallorca and its districts. We cross-checked trends with other indexes to ensure reliability. |
| idealista Rent Price Index | Transparent rental asking-price series with explicit methodology notes. | We used it as our baseline for market rents per sqm in Palma de Mallorca. We converted monthly figures to annual rent to compute gross yields consistently. |
| Tinsa Balearic Price Index | Long-running, recognized Spanish housing price index provider. | We used it to cross-check that Balearics price growth is consistent across independent measures. We used it as a second lens so conclusions aren't tied to one dataset. |
| Banco de España Housing Indicators | Spanish central bank's consolidated dashboard for housing data. | We used it to anchor the macro view of prices and financing context. We used it to confirm housing remained in a high-price environment entering 2026. |
| INE (National Statistics Institute) | Spain's official statistics institute for house prices and rental indexes. | We used it to frame national trends and cross-check Palma's performance. We used it as triangulation so yield estimates aren't built on one private dataset alone. |
| BOE Balearic Tourism Law 8/2012 | Spain's official gazette with primary legal source text. | We used it to define the legal framework for tourist rentals (ETV) in Palma de Mallorca. We used it to support the short-term rental legality section. |
| El Pais (STR Policy Reporting) | Major national newspaper with attributed policy reporting. | We used it to summarize Palma's policy direction on tourist rentals heading into 2026. We used it as a reality check on the city's restrictive stance. |
| AirDNA Palma Market Overview | Widely used short-term rental analytics provider with consistent dashboards. | We used it to estimate realistic occupancy and daily rates for Palma STRs. We used it to compute order-of-magnitude gross STR yields for comparison. |
| Agencia Tributaria | Spain's national tax authority and primary source on non-resident taxation. | We used it to explain how non-resident rental income is treated at a high level. We used it to flag that tax can materially change net yields for foreigners. |
| Consell de Mallorca Tourism Registry | Official public register of tourism establishments in Mallorca. | We used it to validate that legal tourist activity is registry-based and checkable. We used it to reinforce that legal STR requires formal licensing. |
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