Only a short distance from the Palma waterfront, the synagogue is located on the street level of a condominium building.

As a result of the Spanish Inquisition the Jews of Mallorca were forced to leave Spain-Mallorca, convert to Christianity or keep their religion hidden. Xuetas or Marranos, who attempted to practice Judaism secretly were often prosecuted. The last trial of Jews in Mallorca was in 1691. As a result 33 Jews were publicly executed.

The current synagogue is the first to open in Mallorca after five centuries of prohibition. The Palma Synagogue was inaugurated in June, 1987 by a group of Jews who came mainly from the United Kingdom, France and Germany. The demographics of the community has evolved and now there are Latin people, Israelis, English, German, French and Spanish members. In recent years many Mallorcans have realized that they are descendants of Jews who were forced to convert to Christianity during the Inquisition. Some of these people have chosen to return to their Jewish roots.