Every Mallorca buyer eventually faces the same fork: a new build with warranties and clean paperwork, a renovated resale that is ready today, or an unrenovated property with better land value and work ahead. Each route has a different tax treatment, timeline and risk profile.
This guide compares them honestly, including the parts developers and renovation romantics tend to leave out.
The tax difference is real
New builds from a developer pay 10% IVA plus Balearic AJD of 1,5% (2% at values of 1.000.000 € or more). Resales pay progressive ITP instead — from 8% up to 13% above 2.000.000 €. At lower prices the resale route is cheaper in tax; at the top of the market the gap narrows and can invert. Run the numbers for your actual bracket before assuming either way.
What new build gets you — and what to check
A new build offers current construction standards, energy efficiency, warranties and no renovation surprises. The key caution is buying off-plan: staged payments must by law be secured with a bank guarantee or insurance in a separate account — ask for the individual certificate covering your payments, and never pay outside that structure. Delivery dates in this market deserve contractual teeth, not optimism.
The renovated resale: pay for finished work
In established areas like Bendinat or Son Vida, much of the stock was built decades ago, and values differ sharply with condition. A quality renovation you can inspect is often the lowest-risk route: you see exactly what you get, in locations where new construction is scarce or impossible. Verify that the works were licensed and registered — an unregistered extension or pool needs review before you commit, and age alone does not legalise works.
The renovation project: land value plus patience
Buying to renovate can secure the best locations at lower entry prices — classic villas in Son Vida, townhouses in Sóller or Valldemossa. The discipline is in verification before purchase: planning rules, what can actually be modified (protected villages such as Deià restrict façades and volumes), and on rustic land the building limitations regardless of plot size. Budget realism and a good local architect matter more than vision.
How to decide
Choose new build if you value certainty and efficiency over location scarcity; a renovated resale if the location matters most and you want to move in now; a project if you have the patience and want land value in the best addresses. In practice the answer often emerges from what actually exists in your target area — which is where a buyer-side search across listed and off-market stock earns its keep.