Spain's National Police arrested the man, who has not been named, on Tuesday after concluding that he had no connection with the international police organization.
The man had tried to convince officers on the Balearic Island that he had been sent by Interpol to investigate a top secret case.
Although he had clothes printed with the Interpol logo and carried a badge identifying himself as an Interpol agent, local officers quickly saw through the bluff, according to a statement from Spain's National Police.
He was rumbled after failing to provide adequate answers such as which actual police force he belonged to and why no official request for assistance had been lodged.
"Police officers are usually loaned by their home countries for a few years, and bring with them investigative knowledge in particular types of crime," according to an explanation on the Interpol website.
When police officers searched the home of the suspect, they discovered numerous items of clothing carrying the word ‘Interpol' or the organizations logo as well as weapons including a baton and gas spray.
He also had a pair of standard police issue handcuffs.
He is in police custody in Palma facing charges for "impersonating a public official".