FAQ on Buying, Renting, Co-Owning & Living
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Frequently Asked Questions
What is a Co-Owned Home in Mallorca?
A legally shared home owned through a Spanish S.L. company. Each 10% share equals 5 weeks/year. Up to 10 verified owners per home.
Is this a timeshare?
No. You own real equity in a Mallorca-based company—not a usage right. You can resell, inherit, or transfer your share. (See: Co-Ownership Share Rights)
Can I buy more than 10%?
Yes. Many owners buy 2 or 3 blocks (10–15 weeks or more). You choose what fits your lifestyle and budget.
How are usage weeks distributed?
A fair rotation system ensures every owner gets varied weeks each year. You can swap with co-owners or coordinate travel. (See: Owners Agreement)
Can I co-own with people from other countries?
Yes. Co-owners are vetted community members—often from across Europe—connected through our trusted matching process.
What legal structure is used?
Each property is owned by a unique Spanish S.L. company, which you co-own. (See: Company Administration Agreement)
What happens before I commit?
We match you based on your preferences and confirm co-owners before forming the legal entity. (See: Onboarding to Key – Co-Ownership Process Guide)
Who manages legal, tax, and admin tasks?
A professional, neutral administrator manages the company, banking, filings, and reporting. (See: Company Administration Agreement)
What if something breaks or needs repairs?
A local property manager takes care of cleaning, maintenance, and emergencies. (See: Property Management Agreement)
How do taxes work for me and the company?
Spanish taxes are paid by the S.L. company. You only declare personal taxes if you withdraw income or sell shares. (See: Tax Guide)
How much of my money goes toward the property itself?
About 80–85% of your investment typically goes to acquiring the property. The rest covers transfer taxes, legal setup, furniture, and administration. See the full breakdown in Document #08 – Co-Owned Property Cost Examples.
What’s included beyond the property price?
Your investment covers:
- Spanish S.L. company formation
- Transfer taxes (ITP)
- Furniture & interior design
- Legal and notarial fees
This ensures a fully operational and legally secure setup.
For full figures, see Document #08.
Are there any hidden fees?
No. All fixed and ongoing costs are transparent and documented. Mallorca Homebase S.L. retains 5% ownership instead of charging hidden commissions. You can review a complete financial example in Document #08.
How is the purchase process managed?
Palmallorca and Mallorca Homebase handle setup, legal documents, and matchmaking. (See: Development & Onboarding Agreements)
Who chooses the home?
Some homes are pre-selected; others are sourced based on buyer interest. All homes are furnished and key-ready.
Can I rent out my unused weeks?
Yes—if the property has a valid license. Otherwise, you can lend weeks or swap with co-owners. (See: Rental and Use Policy)
Can I sell my share in the future?
Yes. Your share can be resold to internal or external buyers, with help from Palmallorca. (See: Co-Ownership Share Rights)
How do shared decisions get made?
Voting is proportional to shares. Most decisions require a majority; structural changes require unanimity. (See: Owners Agreement)
Are pets allowed?
The group decides once before signing. Pets may be allowed under respectful conditions. (See: Owners Agreement)
Can we make upgrades to the home?
Yes, but upgrades must be approved by the board and funded according to agreement. (See: Owners Agreement)
What happens if a co-owner doesn’t pay or follow rules?
The administrator and board follow defined steps for resolution. (See: Owners Agreement + Company Administration Agreement)
Why is everything based in Mallorca?
All services, taxes, and companies are local—ensuring economic benefit stays on the island and legal compliance is guaranteed.
Why is this better than owning alone?
You get a premium Mallorca home with reduced cost, no operational hassle, and a smart ownership structure designed for real use.
What does Mallorca Homebase earn from the sale?
Mallorca Homebase does not charge cash commissions. It retains 5% of the company (equal to ~2 weeks per year) to ensure long-term alignment and support. This is clearly explained in Document #08.
What are the yearly costs I should expect?
Annual fixed costs typically range from €12,000 to €20,000, depending on the property’s size, location, and value. These costs usually include:
- Local administrator
- Bookkeeping, legal, and compliance
- Insurance and municipal property taxes
- They are split proportionally among the co-owners.
See Document #08 – Co-Owned Property Cost Examples for specific illustrations.
How do I know I’m paying market value for my share?
Share prices are based on the real acquisition and setup costs of the company and the property. The full model is transparent and itemized — with detailed examples shown in Document #08 – Co-Owned Property Cost Examples.
Additionally:
- Cost per m² benchmarks are well known in Mallorca and used in all calculations
- Co-ownership through Mallorca Homebase ensures aligned motivation to negotiate the best possible purchase price
- All additional services are budgeted based on real quotes and industry standards to protect owner value