Palma, Balearic Islands, Spain
The capital of Mallorca with a stunning Gothic cathedral, beautiful beaches, and a vibrant Mediterranean lifestyle.
Below Average vs Spain avg (100)
Above Average
Household income
Job market health
Palma vs Spain Average
Taxes
- Income Tax: 24.5%
- VAT: 21.0%
Economy & Jobs
- Median Income: €30,000
- Unemployment: 9.5%
- Population: 420,000
Climate
- Sunny Days: 275/year
- Summer High: 88°F
- Winter Low: 44°F
Housing
- Median Home: €380,000
- 1BR Rent: €1000/mo
Cost of Living
Palma's cost of living index is 100 (Spain average = 100).
| Category | Palma | National Average | Difference |
|---|---|---|---|
| Overall | 100 | 100 | 0.0% |
| Housing | 120 | 100 | +20.0% |
Data source: INE / Numbeo, 2026
Housing Market
| Metric | Value |
|---|---|
| Median Home Price | €380,000 |
| Median Rent (1BR) | €1000/mo |
| Median Rent (2BR) | €1,250/mo |
| Price per Sq Ft | €253 |
Data source: Idealista / Fotocasa, 2026
True Cost of Home Ownership
Utilities
Estimated monthly utility costs for a typical household in Palma:
| Utility | Estimated Monthly Cost | Notes |
|---|---|---|
| Electricity | €90 | Based on ~3,500 kWh/year typical Spanish household usage |
| Heating & Cooling | €20 | Estimated based on local climate. electric or gas heating |
| Cooling (AC) | €9 | Estimated based on local climate and electricity rates |
| Water | €35 | Includes sewer |
| Internet (100+ Mbps) | €40 | Broadband average |
| Garbage / Trash | Included in taxes | Municipal service (covered by property taxes) |
| Total Utilities | €194 | Monthly estimate (including heating & cooling) |
Data sources: CNMC, Iberdrola, Endesa 2025
Best Neighborhoods
Downtown Palma
The heart of the city with restaurants, shops, and entertainment. Average rent: €1,200/mo.
Palma Heights
Trendy area with local businesses and a mix of historic and modern housing. Average rent: €1,100/mo.
East Palma
Up-and-coming neighborhood with new developments and young professionals. Average rent: €900/mo.
West Palma
Family-friendly area with parks and good schools. Average rent: €950/mo.
Remote Work Score
Palma scores —/100 for remote work readiness:
Climate
Palma has a varied climate with distinct seasons.
| Month | Avg High | Avg Low | Rainfall |
|---|---|---|---|
| January | 64°F | 44°F | 2.5" |
| April | 73°F | 59°F | 2.8" |
| July | 88°F | 63°F | 1.5" |
| October | 68°F | 62°F | 2.2" |
Taxes
- Income Tax: 24.5%
- VAT: 21%
- Property Tax: ~0.5% of assessed value
Economy & Jobs
Major industries include technology, healthcare, education, and manufacturing. The unemployment rate is 9.5%.
Important Disclaimer: All data on this page is for informational purposes only and does not constitute financial, legal, tax, or real estate advice. URCity and Northshore Press are not financial advisors, tax professionals, or real estate agents. Always consult qualified professionals before making relocation or financial decisions.
Frequently Asked Questions
What is the cost of living in Palma, Balearic Islands, Spain?
The cost of living index in Palma is 100, which is Lower the Spain national average of 100.
How much does it cost to buy a home in Palma?
The median home price in Palma is €380,000. The housing index is 120.
What is the average rent for a 1-bedroom apartment?
The average rent for a 1-bedroom apartment in Palma is approximately €1000/mo.
Does Palma, BAL have income tax?
Palma is in BAL, which has an income tax rate of 24.5%.
What is the climate like in Palma?
Palma enjoys approximately 275 sunny days per year. Summer highs reach around 88°F, while winter lows can drop to around 44°F.
Data Sources
- Cost of Living: INE / Numbeo, 2026
- Housing Data: Idealista / Fotocasa, 2026
- Income & Employment: INE Labour Force Survey, 2024
- Utilities CNMC, Iberdrola, Endesa 2025
Data last updated: July 12, 2026. Data may not reflect current market conditions. Always verify with local sources before making relocation decisions.