What Does it Actually Cost – and How Does It Work Behind the Scenes?
When buying a traditional holiday home, costs can be unpredictable and responsibilities heavy. Co-ownership makes both more manageable — and fair. Here’s how it works.
3 Key Cost Categories to Understand
When you co-own a home in Mallorca through Palmallorca, the total cost is divided into three simple and transparent categories:
1. Property Acquisition Cost (One-Time)
This includes your share of the purchase price, legal setup, company formation, escrow, and due diligence.
→ Typically starts from €75,000 for a 5-week block, depending on property value.
2. Fixed Annual Shared Costs (Recurring, Paid Monthly)
All co-owners contribute equally to the annual costs of maintaining and operating the property, paid monthly for predictability:
- Property insurance
- Legal and tax administration
- Local company filings
- Cleaning readiness and inspections
- Maintenance reserve and buffer fund
- Upgrade budget (approved by co-owner vote)
3. Usage-Related Costs (Only When Used)
These are paid only when you or your guests use the home:
- Cleaning and laundry
- Utilities (if relevant)
- Rental support and service fees (if renting your weeks)
This structure ensures affordability, fairness, and full transparency for every co-owner.
Real Example – €1M Property, 5-Week Ownership
Let’s say the group agrees to acquire a fully furnished, key-ready home in Mallorca for €1 million.
This is how it works:
- 10 co-owners each invest €100,000
- Together, they co-own the home via a dedicated Mallorca S.L.
The €1M includes everything:
- Purchase price
- Legal setup and company formation
- Escrow and documentation
- Notary and transfer taxes
- Buyer-side due diligence
✅ Due diligence is performed on behalf of the buyers by trusted local legal and administrative partners to ensure the property is free of debt and legally sound.
✅ The home is acquired without going over budget — no surprise costs.
Each co-owner receives:
- 100 shares in the company = 5 weeks of use per year
- 9.62% ownership in the company, listed in the Spanish company register
- Voting rights on key decisions:
- 1 vote per owned week (e.g., 5 weeks = 5 votes)
- Simple majority rules: >50% = approved
- Sale of the property requires a 2/3 supermajority
- Clear annual reporting for personal tax filings
When reporting to your local tax authority, you simply state the number of shares you own in a Spanish S.L., what you paid, and your status remains unchanged until a sale or gain is realized.
Who Manages the Property After the Purchase?
After the purchase, two key roles manage the home:
Local Company Administrator
- Appointed to represent the owners and operate the Spanish S.L.
- Coordinates accounting, legal filings, and compliance
- Manages communication and voting via a private online group
- Works with Global Consulting for accounting, tax, and filings
Global Consulting is a locally owned Mallorca firm with 30+ years of experience managing properties for international owners.
Property Manager (Case-by-Case)
- Selected based on property type and location
- Handles cleaning, maintenance, welcome service, and seasonal checks
If Upgrades Are Needed
- Palmallorca and the Administrator hire a professional local Project Manager
- All larger upgrades are based on 2–3 quotes and owner approval
- Project costs and management are included in the co-owner budget
Local project managers are always fluent in Spanish and familiar with Mallorcan service providers and regulations.
Key Takeaway
Palmallorca’s model gives you full clarity and peace of mind:
- Transparent costs with no markup
- Locally rooted legal and admin structure
- A well-managed home, with professional support
- A sense of ownership, without the full burden
Learn the Full Co-Ownership Solution
Palmallorca Co-Ownership is a complete, transparent model for smart second-home ownership in Mallorca — built around legal clarity, local support, and personal freedom. Explore the full series below to understand how it works and why it’s designed for the way people live, invest, and travel today.
Why Mallorca – And Why Now?
Discover why Mallorca remains one of Europe’s top lifestyle destinations — and why timing matters.
From Dream to Keys – How It Works
A practical guide to how we match co-owners and form your co-ownership group.
Who Buys Co-Ownership in Mallorca?
See the real people behind the model — from digital nomads to retirees and wellness seekers.
What You Really Own – Legal & Company Structure
Understand the secure ownership structure via Spanish companies and your rights.
Company & Tax Administration Made Easy
No headaches — all financial and legal admin is handled locally on your behalf.
Personal Taxation in a Mallorca Co-Ownership Model
Understand how private taxation works for co-owners — simple, fair, and legally secure.
How the Booking Rules Work
A smart system for using, rotating, and renting your weeks fairly.
The Owners Agreement – Shared Rules
How decisions are made, upgrades are approved, and everyone’s rights are respected.
Selling Your Shares – A Clear Exit Path
Exit easily through our resale and auction platform, with first rights for co-owners.
What Happens If a Co-Owner Stops Paying?
Built-in protection ensures others are not affected if someone defaults.
Legal Rental Rights for Co-Owners
Rent legally with transparency — learn how our 4-week rental logic works.
Property Management – Daily Care & Guest Prep
How the property is cleaned, managed, and prepared for each co-owner or guest.
What Happens If a Co-Owner Passes Away?
How inheritance works under EU law — with admin and continuity fully secured.
Upgrades & Improvements – Owner Votes & Budgeting
How new ideas and improvements are proposed, voted on, and funded.
Can I Use My Weeks Flexibly or Swap with Others?
Yes — swap across seasons or even with other Palmallorca Co-Owners.
Want to Learn More?
Explore how you can own a slice of paradise — without the burden of full ownership.
Join the Palmallorca Co-Owner Community (requires free membership)
Welcome to a smarter, more flexible way to own a home in Mallorca — with both emotional and rational value built in.
