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Soaring living costs are making Majorca an increasingly unattainable destination for European pensioners, with experts warning that only the wealthiest retirees can now afford to live on the island. For decades, Majorca was a magnet for retirees from the UK, Germany and other countries in northern Europe. Mild winters, a relaxed lifestyle and relatively affordable housing and living costs made it an ideal place to stretch a pension income.

Many bought affordable apartments and spent several months a year on the island, particularly outside the peak tourist season. That picture has now appears to have changed, according to Pedro Berruezo, general secretary of the UGT pensioners' union in the Balearic Islands, who said the number of retirees from countries like the UK has fallen noticeably.

According to Pedro Berruezo, the housing crisis and sharp rise in the cost of living are deterring both Majorcan retirees and those who would once have chosen Majorca as their preferred destination for retirement.

He told the Majorca Daily Bulletin: "The cost of living in Majorca, including housing prices, was lower than in their home countries. Therefore, they could live very comfortably on the island with their pensions.

"They would buy an apartment and spend a few months here, especially during the off-season, to escape the cold, snow, and rain back home."

He added: "There has been a change in trend. Only the wealthiest retirees are now coming."

The cost of living crisis, with the increasing price of housing and food, is not only affecting foreign residents. Increasing numbers of local pensioners and long-term residents are also leaving Majorca, Mr Berruezo explained.

He said that surviving on a single pension is increasingly impossible without owning a home outright.

Mr Berruezo told Ultima Hora that the average retirement pension in the Balearics stands at around €1,396 (£1,210) per month, while average rents are close to €1,500 (£1,300).

He said: "A retiree without their own home cannot live in Majorca."

Palma is Spain's second most expensive city to live in, only behind Barcelona, since the cost of living is 24.20% higher than the national average in 2025, according to data from a study by savings website Kelisto.es. Housing costs in Palma are among the highest in Spain, with purchase prices sitting 95.2% above the national average, according to the study.