Commercial Property Finance — Mallorca
Senior investment and hospitality debt for boutique hotels, aparthotels, marina and waterfront retail, leisure premises and Palma office stock — structured around seasonal trading and Balearic licensing, for Spanish and international investors.
Hospitality, retail and mixed-use investment debt across Mallorca — boutique hotels, marina units and leisure premises. A specialist will review the asset and revert within one working day.
Last updated Reviewed by our Clifton International finance team.
In short
Mallorca commercial finance funds hotels, boutique lodging, retail and mixed-use buildings, typically at 50–65% loan-to-value over five to fifteen years. Lenders underwrite stabilised trading performance, seasonality and asset quality rather than the borrower's personal income.
At a glance
Figures reviewed:
Indicative figures for guidance only, correct as at July 2026. Rates, costs and timelines vary by lender, borrower profile, asset and jurisdiction, and are not an offer of finance. How we derive these figures.
Last reviewed . Read the full Key facts methodology, or speak to our team for a quote based on your circumstances.
Pricing reference — Mallorca
12-month Euribor
2.954%
Monthly average for
0.78 points higher than September 2025 (2.172%)
Commercial margin
+1.75% – 3.25%
The margin added over Euribor on investment debt, driven by tenant covenant, unexpired lease term and sector.
Implied all-in rate
4.70% – 6.20%
Euribor plus margin, before hedging costs. Illustrative, not an offer of finance.
Minimum cover (DSCR)
1.30x
Net rental income divided by annual debt service. Cover, not loan-to-value, usually sets the facility size.
Official monthly Euribor average published by the Banco de España — official mortgage market reference rates, published in the Boletín Oficial del Estado. Commercial margins and cover ratios on this page were last reviewed by our Spanish finance team in July 2026. The monthly average changes once a month; pricing on any individual asset depends on sector, tenant covenant, unexpired lease term, loan-to-value and borrower structure.
Debt-service cover — Mallorca
Commercial facilities are sized on debt-service cover ratio (DSCR) — net rental income divided by annual debt service — and then capped by loan-to-value. Enter the asset's figures to see which of the two constraints sets the facility.
Indicative maximum facility
€2,400,000
Set by the 60% loan-to-value cap — cover would support more debt.
Illustrative only and not an offer of finance. Defaults use 12-month Euribor of 2.954% (August 2026) plus a mid commercial margin, and a 1.30x minimum cover ratio, reviewed July 2026. Lenders test cover at a stressed rate and may apply sector-specific minimums.
Popular Spain finance
Why clients choose us
Hospitality lending on trading hotels and aparthotels, sized on annualised net operating income and operator strength.
Facilities on retail, restaurant and leisure premises in Palma, Port Andratx, Puerto Portals and the island's marinas.
Investment debt on let office and whole-building mixed-use stock in central Palma.
Debt structured around shoulder-season cashflow, with interest cover tested on stressed rather than peak trading.
Balearic tourist-licence position reviewed early, with Spanish counsel co-ordinated so lender conditions are met without delay.
Capex tranches for refurbishment, re-branding and bringing tired hospitality stock back into full trading.
Borrower eligibility
Typical lending criteria
Indicative only. Actual terms depend on borrower profile, asset and lender criteria.
Recent transactions
Published transactions from our own case study library — select any to read the full brief.
Mallorca · Development
€4.5m · 43% LTV · 36 days to funding
€4.5m developer loan at 43% LTV to complete a 6-unit residential building in a strategic Palma location. Funding delivered within 36 days.
Estepona · Non-Resident Mortgage
€1.6m purchase · 70% LTV · primary residence
A 70% LTV Spanish mortgage was secured through a specialist partner for a UK tax-resident international professional relocating to a €1.6m primary residence in Estepona.
Murcia · Non-Resident Mortgage
€750k purchase · 70% LTV · holiday home
A 70% LTV Spanish mortgage was secured through a specialist partner for UK-resident joint applicants — one salaried, one long-established self-employed — buying a €750k holiday home on a Murcia golf resort.
Frequently asked
Boutique and resort hotels, aparthotels, marina and waterfront retail, restaurant and leisure premises, offices in Palma, and light-industrial and logistics stock serving the island.
Hospitality and leisure income on Mallorca is strongly seasonal, so lenders size debt on annualised net operating income and stress the shoulder months rather than peak-season performance.
Typically 50–60% of value on a trading hotel with an established operator and record. Assets being repositioned or brought back into use are sized lower, often with a capex tranche.
Yes — Spanish SL ownership is standard for Mallorca commercial and hospitality assets, and lenders will look through to the sponsor for guarantees and track record.
Yes, where the tourist licence is in place and transferable. The Balearic licensing position is diligenced early because it drives both value and lender appetite.
DSCR is net operating income divided by annual debt service. Take gross rent, deduct non-recoverable costs such as management, insurance, IBI and a maintenance allowance to get net operating income, then divide by the interest and capital payable over twelve months. Net income of €260,000 against debt service of €200,000 gives a DSCR of 1.30x.
A minimum of 1.30x on standard investment stock is the usual test. Hotels, leisure and other trading assets are typically held to 1.40x–1.50x because income is operational rather than contracted, while long-let assets with an institutional covenant can be accepted closer to 1.20x.
Lenders test at a stressed rate, not the pay rate. On a floating facility priced at around 5.45% all-in, expect a stress of one to two points above that, or a floor rate set by the credit committee. Hedging the loan with a cap or swap usually allows the test to be run closer to the hedged rate.
Whichever is lower. The lender sizes the debt that net income can service at the minimum cover ratio, then caps that figure at the loan-to-value limit. On a high-yielding asset the LTV cap usually binds; on a prime, low-yielding asset cover binds and the resulting leverage sits well below the headline LTV.
Signed leases with unexpired terms, a tenancy schedule, the last two to three years of certified accounts or trading figures for operational assets, a current rent roll, evidence of arrears, and a service-charge and non-recoverable cost breakdown. A RICS-equivalent valuation confirms the market rent underpinning the calculation.
Local coverage
Palma, Son Vida, Puerto Andratx, Deià, Pollença and the south-east. We also arrange property finance across the neighbouring areas below — one adviser, one conversation, whichever location you buy in.
Nearby covered areas
Not listed? We cover all of mainland Spain, the Balearics and the Canaries — tell us the town and we will confirm lender appetite.
Also in Mallorca
Schemes are funded on development terms while works run, then refinanced onto commercial investment debt once the asset is complete and income-producing.
Development finance for Mallorca schemes — villa developments, small residential blocks and full-scale renovation projects.
Short-term bridging on Mallorca property where a term mortgage cannot complete in time, refinanced onto a mortgage at exit.
Related coverage
Lender appetite matrix
Commercial / mixed use — appetite across every buyer profile. Indicative panel appetite reviewed July 2026 — not an offer of finance.
UK buyer (non-resident)
Priced as commercial debt with shorter terms than a residential loan.
Buyer guideUS buyer (non-resident)
Private banks and debt funds rather than the Spanish high street.
Buyer guideUAE / GCC-based buyer
Private bank appetite, frequently with an assets-under-management condition.
Buyer guideEU buyer (non-resident)
Commercial terms, typically 10–15 years with an SPV structure.
Buyer guideSwiss / Norwegian buyer
Case-by-case, usually through a private bank relationship.
Buyer guideSpanish resident / fiscal resident
Full commercial market, priced on covenant and asset quality.
Corporate / SPV purchase
The structure lenders expect for commercial assets in Spain.
Buyer guideRelated bridging & development finance
Dedicated landing pages for each bridging use case and development stage — with typical structures, eligibility and example transactions.
Time-critical acquisitions, auction, off-market and chain-break completions.
View pageRefinance existing Spanish debt, cancel embargoes and restructure onto cleaner terms.
View pageRelease equity from Spanish real estate to fund operating capital or growth.
View pageFast cash advance against Spanish property with a defined exit route.
View pageShort-term facilities for professional investors executing on Spanish opportunities.
View pagePartial land funding on consented and pre-consented sites, rolling into senior debt on planning grant.
View pageSenior debt for new-build residential and mixed-use schemes with staged drawdowns.
View pageRefurbishment and repositioning finance for existing Spanish buildings.
View pageFinance for schemes already under construction — completion funding and stretched senior.
View pageRelated services
Purchase finance for primary residences, second homes and holiday properties across Spain.
Learn moreSenior debt and stretched-senior facilities for residential and mixed-use schemes.
Learn moreInvestment and owner-occupier funding for offices, hospitality, retail and logistics.
Learn moreImproved terms, capital raising and exit refinance for maturing Spanish facilities.
Learn moreShort-term funding for acquisitions, auctions, chain-breaks and development exits.
Learn moreReady to explore your options?
Hospitality, retail and mixed-use investment debt across Mallorca — boutique hotels, marina units and leisure premises. A specialist will review the asset and revert within one working day.