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Information for buyers

Useful information about buying a property in Mallorca

For Buyers

 

Have you decided to buy a property in Mallorca—or perhaps even found your dream home?

Purchasing real estate is an exciting step, but there are several key factors to consider. Below, we’ve compiled the most important points to guide you through the process.


What do I need?

The most important thing is the NIE number (Número de Identidad de Extranjeros). 
This serves as the identification or tax number for non-residents in Spain, including Mallorca. You’ll need an NIE number to purchase any property, so if you’re planning to buy a house or apartment in Mallorca soon, it’s best to apply for one now.

The easiest, fastest, and most cost-effective way to apply is usually through the Spanish embassy or consulate in your home country. However, you can also apply for the NIE number locally, though this is more expensive but usually a bit faster.

home keys

What costs will I incur?
The costs depend on the type of property, whether it is a new build (house or apartment), a used property, or a plot of land.​

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1. You want to buy a used property
In this case, you usually have to expect additional costs of around 10–14% of the purchase price. These include:

  • 8–10% property transfer tax (depending on the purchase price of the property),

  • 3–4% notary fees.

If you cannot (or do not want to) attend the notary appointment in person and authorize the notary to carry out the certification on your behalf, an additional surcharge of around 1% of the purchase price is usually charged for this.

2. You want to buy a property or a new construction
Are you interested in purchasing a newly built property (first occupancy) or a plot of land?

The applicable taxes and fees depend on whether you buy from a private seller or a company:

Purchase from a private individual:

  • 21% VAT (IVA)

  • 1.5% Stamp Duty (AJD)

Purchase from a company:

  • 10% VAT (IVA)

  • 1.5% Stamp Duty (AJD)

VAT is paid at the notary's office during the signing of the deed, while the stamp duty must be settled within four weeks afterward. Additionally, you should budget around 3% of the purchase price for notary and land registry fees.

In this case, no real estate transfer tax applies.

Real Estate Transfer Tax

The real estate transfer tax is based on the purchase price and is calculated in tiers as follows:

  • Up to €400,000: 8%

  • €401,000 – €600,000: 9%

  • €601,000 – €900,000: 10%

Who pays the estate agents fee?
The brokerage fee is paid by the seller in Mallorca. 

What is the general procedure for a purchase?

If you have decided to purchase a property and your financing is also secured, an option contract is drawn up. This secures the desired property for you by means of a down payment of 10% of the agreed purchase price. This down payment is usually deposited in an escrow account with a notary. The notary will also charge corresponding fees for this. If both parties agree, the deposit can be transferred to the broker's account. 

 

As a rule, a notary appointment is agreed 8 weeks after the issue of the option contract. This period can also be extended by mutual agreement of the buyer and seller.  If you have detailed questions about the option contract, please do not hesitate to contact us.

 

If all the necessary documents from both sides are available, the notary appointment can take place as agreed and you will then be the happy owner of your property in Mallorca. 

Financing

If you still need financing to purchase the property, you can secure it either in your home country or in Spain. For purchases in Spain, you will need 40% of the purchase price as equity plus an additional 10–11% to cover the associated transaction costs.

Interested in investing in a property in Mallorca?
Take a look at our portfolio or let us know your desired criteria.
We’d be happy to help you find the perfect property!

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