Palma, also known as Palma de Mallorca, is the capital and largest city of the autonomous community of the Balearic Islands in Spain. It is situ…Palma, also known as Palma de Mallorca, is the capital and largest city of the autonomous community of the Balearic Islands in Spain. It is situated on the south coast of Mallorca on the Bay of Palma. The Cabrera Archipelago, though widely separated from Palma proper, is administratively considered part of the municipality.