Stability Starts with Structure
The Palmallorca Co-Ownership model is built to be smooth, fair, and stress-free — even if unexpected issues arise with one of the co-owners.
That’s why we’ve designed a clear, respectful, and legally sound process in case a co-owner fails to pay their fair share of annual costs (cleaning, maintenance, insurance, admin, etc.).
Built-In Protection from Day One
When the company is created, each co-owner deposits an upfront buffer equal to 6 months of their annual shared costs. This acts as a financial cushion, reducing the risk for other owners if someone delays or misses payments.
What If a Co-Owner Doesn’t Pay?
If a payment is missed, the administrator takes immediate and discreet action:
- First, the co-owner is contacted personally to understand the situation
- A short grace period allows time to catch up or resolve the issue
- If needed, the co-owner can choose to:
- Rent out one or more weeks to cover the balance
- Sell one or more weeks voluntarily
Legal Rights to Protect the Group
To protect the other owners and the property:
- Each owner’s shares are secured with a pledge clause in the legal agreement
- Shares cannot be transferred or sold if any unpaid balance exists on the owner’s company account
- If no resolution is reached, the administrator may initiate a forced resale of shares to recover the debt — always seeking the best outcome for everyone involved
You Don’t Have to Get Involved
This system ensures:
- No stress for other owners
- No group discussions or drama
- No impact on the property or shared services
The administrator handles all communication and resolution steps. Co-owners remain protected and unaffected — just as they should.
Resale with Respect
If resale becomes necessary:
- Palmallorca and the administrator will assist in finding a new buyer
- Existing owners will be informed but not required to act
- Any resale follows the same legal and ownership rules as all transfers
It’s About Fairness — Not Punishment
Life happens. The structure is not designed to punish, but to protect the shared investment, ensure fairness, and keep the co-ownership enjoyable for everyone — for years to come.
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.
The Cost & Operations Behind Co-Ownership
What your investment includes, how costs are shared, and what it means in practice.
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.
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.
