Buying Property in Mallorca

Finest Homes Mallorca recommends the appointment of a Spanish lawyer. We will be pleased to introduce you to English speaking lawyers who are renowned for their conveyancing skills.

The following is a guide to the procedure for buying property in Mallorca. However, whilst we have been thorough with our research it is not a substitute for professional advice from a qualified expert.

Once you decide on a property and your offer is accepted a deposit is required to secure the property subject to the signing of the option agreement.

At this stage it is prudent to instruct a lawyer who will commence the buying process as follows:-

• Check the option agreement
• Make all the necessary searches
• Handle all payments
• Apply for your NIE number (Fiscal number) without which no contracts can be completed

Buying property in property in Mallorca is very secure as no sale can be completed until the following have been verified:-

• That the property belongs to the seller
• That the property is free of debt
• All correct building permissions are in place
• Inventory of furniture included in the price

On a new-build or off-plan property no purchase will go ahead until:-

• Building license is in order
• Financial status & reputation of the builder/developer
• Building & construction guarantee

The solicitor will give you an estimate of the taxes and expenses involved for the purchase.

When both you and your lawyer are satisfied with the above points the option contract (stating your commitment to purchase) is signed and 10%of the purchase price paid.

AT THIS POINT YOU ARE COMMITTED TO THE PURCHASE

All property sales in Mallorca are completed formally in front of a notary. A date will be set by your lawyer and must be attended by:-

• The purchaser (or representative who has power of attorney)
• The seller
• The bank that is the mortgage lender
• The bank that is liquidating the mortgage

The Notary (who is an independent public official) registers the title deed with the Mallorca authorities.

You will receive a copy of the deeds and your lawyer registers them with the land registry.

Guide to Costs & fees

Finest Homes Mallorca offers this only as a guide but it is a reasonable summary of the tax entailed when purchasing a property in Mallorca

Resale Property

• Up to €300,000 – 7%
• From €300.000 | €500,000 -8%
• From €500,000 | €700,000 – 9%
• From €700,000+ – 10%
• Plot of Land – 18%
• Legal costs | Including notary – 2%

New Property (first registered owner) 4% (as of 2012)

Lawyer’s fees are circa 1% of the purchase price and include:-

• Opening a bank account
• Application for NIE
• Change of utilities
• Setting up D/D
• Writing a Spanish will

To purchase a property in Mallorca is very straight forward and is usually completed in 6-8 weeks

Finest Homes Mallorca – Friendly and professional, we are with you every step of the way.