Investment Opportunity: Historic Building Divided into Two Properties in Palma’s Old Town for Sale

This architectural masterpiece presents a prime investment opportunity for anyone seeking a premium heritage property in Spain. Comprising two distinct units within a fully protected building dating back to 1886, this house for sale stands out due to its substantial total area of 628 square meters, which can be acquired as a whole for €3,075,450. Alternatively, buyers have the exceptional flexibility to purchase the two assets individually based on their specific investment goals: the majestic 275-square-meter main residence on the second floor is available for €2,014,950, while the 353-square-meter mezzanine with a basement can be secured separately for €1,060,500. While the historical layout retains its original aristocratic bones and grand rooms, its flexible architectural design allows for a versatile distribution, leaving room to tailor the final number of bedrooms and bathrooms to the buyer's unique vision. The entire complex is anchored around a magnificent, central Mallorcan patio featuring a traditional arched gallery that acts as the building's structural and visual core. Modern comforts seamlessly blend with antiquity, as the estate features an advanced centralized heating system alongside wooden ceiling beams, a private elevator with clear glass paneling, expansive balconies overlooking the exterior, and potential for an elegant urban rooftop terrace.

Situated in the absolute heart of Palma de Mallorca's highly sought-after historic center, this house for sale boasts an enviable location on the prestigious Calle Morei. The property is ideally positioned within walking distance of the city's most iconic landmarks, including the breathtaking Santa Maria Cathedral, the historic La Lonja exchange, and the fashionable Paseo del Born avenue. Residents will find themselves surrounded by the finest local museums, premium boutiques, and Michelin-starred restaurants that the old town has to offer. In terms of accessibility, the estate is perfectly placed just a 15-minute drive from Palma de Mallorca Airport (PMI), allowing for effortless international travel. The immediate neighborhood is highly attractive for its romantic, narrow cobblestone streets, high security, and an incredibly strong demand for both elite residential living and boutique hospitality projects.

​Stepping inside this magnificent house for sale reveals a space filled with invaluable original architectural elements and high-end materials that tell a historic story. The interior showcases towering high ceilings, grand entrance gates, period-accurate large windows, and preserved wooden beams that have been carefully maintained. Structurally, the property is split into two major zones: the upper second-floor piano nobile, priced at €2,014,950, was previously used as two independent apartments and offers massive open spaces bathed in natural light through multiple facades. Meanwhile, the lower mezzanine and basement level, priced at €1,060,500, features three independent entrances directly from the patio, presenting a clean slate with incredible potential for conversion into multiple luxury apartments. Although the kitchens and bathrooms currently await a personalized luxury renovation, the overall structural framework, raw masonry, and communal areas are in excellent condition, offering a rare opportunity to execute a custom prime residential repositioning project.

​Acquiring this historic house for sale involves standard Spanish transaction costs alongside the Balearic progressive Property Transfer Tax (ITP), which features higher rates than the national average. If purchasing the entire building together for €3,075,450, the progressive breakdown of the ITP results in a total of €348,808.50, calculated across its established brackets: 8% on the first €400,000 (€32,000), 9% on the next €200,000 (€18,000), 10% on the next €400,000 (€40,000), 12% on the portion between €1,000,000 and €3,000,000 (€240,000), and 13% on the remaining €75,450 above the three-million threshold (€9,808.50). Adding the estimated notary fees of €4,000, the professional gestor management fees of €2,000, and an estimated €3,000 for land registry, the total ancillary expenses for a combined purchase come to exactly €357,808.50, bringing the final investment to €3,433,258.50. On the other hand, if the second-floor residence is purchased alone for €2,014,950, the progressive ITP amounts to €211,794 (8% on the first €400k, 9% on the next €200k, 10% on the next €400k, and 12% on the remaining €1,014,950), which, combined with the €9,000 in fixed fees, brings total closing costs for this unit to €220,794. If only the mezzanine and basement are purchased for €1,060,500, the progressive ITP totals €97,260 (8% on the first €400k, 9% on the next €200k, 10% on the next €400k, and 12% on the final €60,500), resulting in total closing costs of €106,260 when adding the €9,000 in notary, gestor, and registry fees.