Downsizing in Mallorca: Moving From a Villa to Something Easier in the Southwest

Downsizing in Mallorca usually means selling a family villa and moving to a smaller, easier home nearby. The keys are getting the timing right between sale and purchase, understanding the over-65 tax rules, and choosing a home that suits the next twenty years rather than the last twenty.

We have been selling homes in Calvià since 1985, and a good share of our sellers today are owners who bought their villa decades ago, raised a family in it and now want less of it. The children have their own lives. The garden takes a full morning. The pool needs looking after whether anyone swims or not. Nobody wants to leave the island, or often even the neighbourhood. They just want a home that gives back more time than it takes.

Why Owners Downsize

The reasons are rarely about money alone. The ones we hear most often are practical: stairs that were never an issue at fifty, a hillside plot that takes a car to reach anything, maintenance on a large garden and pool, and a house that sits mostly empty outside family holidays.

There is also a quieter reason. Many owners want to make a decision about the family home on their own terms, while they have the energy to enjoy the next chapter, rather than leaving it to their children later. Freeing up capital can also help the next generation now. Our article on Balearic donation tax and gifting to children covers how that works.

Sell First or Buy First?

This is the first question almost everyone asks, and there is no single right answer. It depends on how much flexibility you have.

• Selling first gives you certainty about your budget and puts you in a strong position as a buyer. The trade-off is that you need somewhere to go if the sale completes before you find the next home. A short let for a few months is a common bridge.
• Buying first lets you move once, calmly, and sell an empty house that is easier to present. It requires the funds to complete the purchase before your sale money arrives.
• Linking the two is often the best compromise. When you agree a sale, the completion date in the arras contract can be set to give you time, and the purchase can be timed to match.

In practice, the timeline for a sale here is measured in months rather than weeks. Our guide to how long it takes to sell a property in Mallorca walks through each stage, and our article on how valuation works explains how the asking price is set.

The Tax Side for Sellers Over 65

For Spanish tax residents, age makes a real difference.

The over-65 exemption. If you are 65 or over and you sell your habitual residence, the gain is exempt from Spanish income tax. Habitual residence generally means the home you have lived in as your main residence for at least three years. We explain the conditions in detail in our guide to the over-65 exemption when selling your home.

The reinvestment relief. If you are under 65, the gain on your main home is exempt to the extent you reinvest the proceeds in a new main home within two years. For couples where one partner is over 65 and the other is not, it is worth taking advice on how ownership shares affect the result.

The life annuity option. Over-65s can also exempt gains on other assets, up to €240,000, by reinvesting the proceeds within six months in a guaranteed life annuity. This is useful for owners who have a second property as well as their home.

What still applies. The over-65 exemption is an income tax rule. It does not remove the municipal plusvalía tax, which the seller pays to the town hall. Our guide to the plusvalía tax explains how it is calculated. Non-residents follow different rules, covered in our article on selling as a non-resident. We always recommend confirming your own position with a tax adviser before you sign.

What to Look For in the Next Home

Buyers who downsize well tend to think about daily life ten or fifteen years from now, not just how the home looks today.

• Level access. A lift, or a ground-floor or single-level home, matters more than an extra bedroom.
• Parking close to the door. Carrying shopping up a long flight of garden steps gets old quickly.
• Walkable services. A pharmacy, a café, a supermarket and a health centre within walking distance change everyday life.
• Low-maintenance outdoor space. A good terrace with a view often gives more pleasure than a large garden.
• Lock-up-and-leave. If you still travel to see family, a home that is secure and easy to close for weeks at a time is worth a lot.
• Healthcare. Know your nearest hospital and emergency options. Our guide to hospitals near Santa Ponsa covers the southwest.

Apartments and townhouses usually come with a community of owners, so read the minutes and check the fees before committing. Our article on buying into a comunidad de propietarios explains what to ask.

Staying in the Southwest

Most of our downsizing clients stay in Calvià, and it is easy to see why. Santa Ponsa, Peguera and Palmanova all have flat seafront promenades with shops and cafés, which makes them very comfortable for everyday living without a car.

Calvià also has a strong offer for older residents. The town hall's Active and Healthy Ageing guide for 2025/2026 lists activities run through the older people's associations in Santa Ponsa, Palmanova, El Toro, Son Caliu, Portals Nous, Magaluf, Galatzó, Calvià village and Es Capdellà. It also includes a Nordic walking programme, a WhatsApp channel for over-65s, the Calvià Saludable card, and discounts for residents over 65.

What to Do With the Contents

A villa full of furniture rarely fits into an apartment. Some sellers include furniture in the sale, which suits buyers who want to move straight in. If you do, list it properly in the contract. Our guide to furnished sales, inventories and contents value explains how. Start early with the pieces that carry family meaning, because those decisions take longest.

How We Help

As a family business ourselves, we understand that selling the family home is not just a transaction. We can value your current home, help you find the right next one in the southwest, and coordinate the timing so you only move once. Start with a free, no-obligation valuation, or browse our current homes in Santa Ponsa and Nova Santa Ponsa and across Mallorca.

Call us on +34 971 692 434, message us on WhatsApp, or email help@imperial-properties.com.