Buying a Property
Buying a property in Spain is different from the process in your home country.
We present the most important points to consider and what you should do before buying a property in Mallorca.
What is the procedure for buying a property in Mallorca?
A typical procedure for buying a house in Mallorca is first the conclusion of a private pre-contract (so-called option contract or also contract with penalty payment), going to the notary, paying the taxes and finally the registration of the new owner in the land register.
What preparatory steps are recommended?
You should apply for a so-called NIE number at a very early stage. This is a foreigner's identification number that also serves as a tax number in Spain. Depending on the workload of the Spanish Immigration Office, it can take several months from the time you apply for the NIE number until it is issued. You should also open a Spanish bank account in good time in order to be able to issue the bank cheques that are customary here in Spain for the payment of the purchase price on the one hand, and on the other hand to have the ancillary costs of the house settled via this account later.
What is the option contract?
In the option contract you acquire an option right for the property against payment of approx. 10 percent of the purchase price. During the option period, which can be freely chosen but is usually about three months, the buyer then has the opportunity to put the property through its paces.
Why is notarisation important in Spain?
While in other countries a property cannot be purchased without notarisation, in Spain this is generally possible but not advisable. A purchase contract concluded in private is not sufficient to register the new owner in the land register. A notarial deed is always required for this.
Can I be represented by my lawyer before the notary?
Yes, representation by your own lawyer is possible. All that is required in advance is a corresponding notarial power of attorney. This can also be signed in front of a notary speaking your language, taking into account some special features.
What taxes are incurred when buying a house in Mallorca?
After the purchase of the property, typically the land transfer tax has to be paid, which is currently between 8 and 11 percent depending on the purchase price. However, there may also be constellations in which Spanish VAT (either 21 or 10 percent) as well as the so-called stamp duty of legal documents is due.
What should be estimated for incidental acquisition costs in Mallorca?
To be on the safe side, it is advisable to calculate between 10 and 15 percent of the purchase price for ancillary purchase costs. This calculation takes into account the following ancillary purchase costs: Land transfer tax, lawyer's and notary's fees, land registry fee.
What has to be taken into account after the acquisition?
After the acquisition and payment of the taxes, the new owner must still be registered in the land register. The utility contracts (electricity, gas, water) must also be re-registered with the new owner.
If you buy a property on Mallorca with us, we will assist you in all steps of the buying and after sales process.
To request more information please contact us directly by phone or email, or fill out the form below.