Buying a home in Mallorca

Buying in Mallorca is straightforward once you know the order of the steps. This guide describes the usual process for Spanish and international buyers. Every purchase is different, so we recommend involving an independent lawyer from the start.

1. Budget and purchase costs

On top of the price come taxes and fees: transfer tax (ITP) on resale homes, or VAT (IVA) and stamp duty (AJD) on new builds, plus notary, land registry, gestor and legal fees and, with a mortgage, the bank’s costs. Rates are set by national and regional law and change over time.

For an indicative estimate, use our purchase-cost calculator. If you plan to borrow, the mortgage calculator will help you estimate the monthly repayment.

2. NIE: your foreigner identification number

Every foreign buyer needs an NIE to sign the purchase, pay taxes and set up utilities. You can apply at a Spanish consulate in your home country or in Spain through the National Police, or through a representative holding a notarised power of attorney. Processing times vary, so apply early.

3. A Spanish bank account

An account with a Spanish bank makes it easier to pay the price, the taxes and the running costs of the home. Banks must check where the funds come from, so it helps to have the supporting documents ready.

4. Choosing and negotiating

We view the properties that match what you are looking for together, and share the documents available. Once you have chosen, the price and main terms are negotiated: timings, what is included in the sale, and the intended completion date.

5. Reservation agreement

For a small deposit, the seller takes the property off the market for a short period while checks are carried out. The agreement should state clearly when the deposit is refundable.

6. Due diligence

Before you commit, your lawyer checks, among other things:

• the land registry extract (nota simple): ownership, charges and mortgages;
• that the land registry, the cadastre and the property itself match;
• building licences and the certificate of habitability (cédula de habitabilidad), and any unauthorised construction;
• on rural land (suelo rústico), the planning restrictions that apply;
• where relevant, the status of a holiday rental licence;
• that property tax (IBI), utilities and community fees are paid up;
• the energy performance certificate and, near the sea, whether the Coastal Law (Ley de Costas) applies.

7. Private purchase contract with deposit (arras)

This is the binding agreement to buy. The buyer pays a deposit and the completion date is set. The usual form is the arras penitenciales of Article 1454 of the Spanish Civil Code: if the buyer walks away, they lose the deposit; if the seller walks away, they repay it twice over. The amount of the deposit is agreed between the parties.

8. Mortgage

Spanish banks also lend to non-residents, usually on different terms from residents. The law requires that you receive the pre-contract information in good time and that the notary advises you free of charge before you sign the loan.

9. Completion at the notary

The sale is completed by public deed (escritura) before a notary. The balance is paid, the notary checks the identity of the parties and the source of funds, and you receive the keys. If you cannot attend, a representative with a notarised power of attorney can sign for you.

10. Taxes, registration and transfers

After completion, the purchase taxes are paid within the legal deadline and the deed is entered in the land registry. The cadastre, utility contracts and the community of owners are also transferred into your name. A gestor or your lawyer usually takes care of this.

11. Owning a home in Mallorca

As an owner you will pay yearly taxes and charges such as the municipal property tax (IBI) and the refuse collection fee and, if you are not resident in Spain, non-resident income tax. Depending on your situation, other taxes may apply. Your tax adviser will tell you which ones apply to you.

How we help

We guide you through each step, coordinate appointments and documents and, if you wish, put you in touch with independent lawyers, notaries and tax advisers. We do not give legal or tax advice ourselves.