Moving to Mallorca from the USA – For Americans entertaining the idea of moving abroad, this could be the ideal moment to take the leap. A unique combination of circumstances makes right now an especially appealing time to invest in Mallorca real estate. In this article, we’ll explore the growing American interest in international relocation and residency—specifically, why Mallorca is drawing so much attention and why now is the right time to invest.
A Post-Election Surge in Interest
It happens every U.S. election cycle: searches for “how to move abroad” spike. But this time, the trend is sticking. Google Trends data shows that searches for “move abroad” hit a 12-month high right after the U.S. election, mirroring past political shifts that have prompted Americans to explore residency options elsewhere.
Even high-profile Americans are making the move. Actor Richard Gere recently bought a home in Madrid, calling these “dark days” in the U.S. and labeling Trump a “bully and a thug” in Spanish media. While not everyone shares Gere’s views, the data speaks for itself – interest in European real estate is growing fast, as is Moving to Mallorca from the USA.
Digital Nomadism and the Golden Visa
In today’s world, career flexibility and remote work allow people to choose where they truly want to live, no longer tied to the location of an office or even the country of their citizenship. The pandemic fueled a boom in digital nomadism, and while some companies have pushed for a return to office work, many still offer the flexibility to work remotely. This shift has led to increased demand for Digital Nomad visas, which became one of the top searches among Americans post-election.
Spain, in particular, has become a prime destination, with a rise in applications for the non-lucrative visa and growing interest in the Spanish real estate market. According to Ceylan Yeğinsu, a travel reporter for The New York Times, the most popular digital nomad destinations in Europe include Spain, Portugal, the Netherlands, and Norway. Spain stands out for its weather, high quality of life, relatively low cost of living, and rich culture and history. Yeğinsu notes that Spain’s Digital Nomad Visa welcomes a range of remote workers, from freelancers to company employees earning at least twice the national minimum wage (around $2,450 per month). The application fee is just $80, and the visa is valid for one year, with the option to renew. The process is relatively accessible and straightforward for foreigners with the flexibility to apply.
Spain also launched its Golden Visa Program in 2013, which grants residency to investors purchasing real estate in Spain. However, the program is set to be officially phased out in April, likely driving a last-minute surge in applications. François Carrierre, CEO of Coldwell Banker Spain, has observed that “there has been a substantial increase in demand for second homes, especially driven by news that the Golden Visa program in Spain is ending.” This rush underscores Spain’s persistent appeal to foreign investors.
Increased Flight Activity from the U.S.
In June 2022, United Airlines launched the first direct flight from Newark, New Jersey, to Mallorca, marking a turning point in American tourism to the island. Over the past two years, a growing number of North Americans have been traveling to Mallorca—many of whom are now considering relocation or purchasing a second home.
United Airlines increased capacity for Mallorca routes in both 2023 and 2024, further highlighting its rising popularity among Americans. American Airlines, the second-largest U.S. airline after United, may also open a new direct route from Miami. Helen Cummins, founder of ABC Mallorca, has pointed out that if direct flights from the U.S. continue expanding, they could fundamentally shift Mallorca’s property market, bringing in even more American investors.
Financial Edge for U.S. Investors
For Americans, the biggest advantage of investing in Mallorcan real estate right now is purchasing power.
David Huggett, Managing Director of Lucid Financial Markets, explains how the current global financial landscape has created a unique opportunity for U.S. buyers:
“If you’re an American buying a €2 million property in Europe today, you’re spending $200,000 less than you would have three months ago. That’s a serious discount—especially in high-end markets like Mallorca.”
Since September, the euro has fallen nearly 10% against the dollar, dropping from 1.12 to 1.0375. This means American buyers can purchase European real estate at a significant discount compared to just a few months ago.
And it’s not just about getting a deal now—it’s also a long-term investment play. Huggett explains:
“Currency trends tend to balance out over time. A property bought in euros today could appreciate significantly as the dollar weakens again. It’s a classic case of ‘buy low, sell high.’”
This also has implications for rental income, especially in a tourism hotspot like Mallorca. With international visitors increasing—particularly high-income travelers—property owners who rent out their homes could see rising yields as demand grows.
U.S. Monetary Policy and Its Impact on the Euro
Several factors influence the current exchange rate between the dollar and the euro.
The U.S. Federal Reserve’s stance on interest rates plays a major role. When central banks maintain high interest rates, their currencies tend to remain strong. When they cut rates, those currencies weaken.
According to Rob Haworth, senior investment strategy director for U.S. Bank Asset Management:
“Some of it is likely due to the Federal Reserve’s interest rate stance, and some of it can be attributed to expectations of new Trump administration tariff policies. Relative currency values reflect the global flow of funds. When the dollar strengthens, it means more foreign money is flowing into the U.S. than the other way around.”
Huggett adds:
“Right now, we’re seeing a ‘risk-off’ sentiment—money is flowing out of equities and into safer assets like U.S. government bonds. This has propped up the dollar. But if the Fed starts cutting rates, the dollar could weaken again, making European real estate more expensive for U.S. buyers.”
Haworth also suggests that Trump’s trade policies may be a factor. Trump has already proposed tariffs on imports from Canada, Mexico, and China. Given his previous trade disputes with the EU, it’s likely he would pursue similar measures in a second term. These policies discourage the Fed from cutting interest rates, which helps maintain the dollar’s strength.
Earlier this year, J.P. Morgan Asset Management noted that “the robust [economic] growth, which has contributed to inflation remaining above 2%, may lead the Fed to halt rate cuts sooner than expected. This makes a dollar weakening unlikely in the short term.”
Market Outlook: A Window of Opportunity
While some European housing markets have slowed, Spain’s real estate sector remains strong.
Idealista reports that Spain’s robust labor market and relatively low mortgage debt levels have led to a faster-than-expected recovery in 2024.
For investors looking to protect and diversify their wealth, Mallorca’s real estate market presents a timely opportunity, especially for Americans benefiting from a strong dollar and favorable exchange rates. Compared to high-demand U.S. markets, Mallorca’s property prices remain relatively affordable—further strengthening the financial case for investment.
Looking ahead, Huggett suggests that real estate transaction volume could surge by 2026, meaning buyers who enter the market now may benefit from rising property values in just a few years.
Mallorca isn’t just another European destination—it’s a prime Mediterranean real estate market with strong international appeal. With increasing North American interest, expanding direct flight options, and a rare financial window of opportunity due to currency fluctuations, now may be the ideal time to invest before demand pushes prices even higher.
If you’d like further information on Moving to Mallorca from the USA please contact the experts at The AgencyRE – we’d be delighted to help you and can advise you throughout the whole process, from initial consultation, to signing at the notary and beyond.
