More Germans choose Mallorca as their new home

The island of Mallorca is seeing an increasing number of German citizens putting down roots.

The trend was highlighted by Hans Lenz, president of the Balearic Association of National and International Real Estate (ABINI). The aftermath of the COVID-19 pandemic led to a spike in property purchases by German Nationals, with around 1,920 bought in 2022 and approximately 1,440 in 2023.

What is notable is the shift from owning second homes to settling permanently on the island. Reportedly, many are embracing telework or even relocating their businesses to Mallorca, thanks to the excellent connectivity with Germany.

The economic optimism and warmer climate of Mallorca stand in stark contrast to the current economic situation in Germany, making the island an attractive destination for Germans.

This migration trend is not only enriching the local culture but also bolstering the economy. The tech-related businesses many Germans bring along help diversify the economy, which has traditionally been reliant on tourism and construction.

Adding to the appeal is the recent tax incentive. Under the governorship of Marga Prohens, the Balearic islands have reduced the wealth tax, a move that many experts believe will further encourage others to establish their fiscal residency in Mallorca. This fiscal adjustment is expected to offset the loss in wealth tax revenue with increased collections from other taxes.

Moreover, the relaxation of penalties for non-disclosure of foreign assets by the European Court of Justice has made Mallorca even more appealing to affluent individuals looking for a new home.