Buying residential property in Mallorca
When you’re buying residential property in Mallorca, it’s vital to know you’re going about things in the right way.
Following our step by step guide will help you make sure there are no nasty surprises on the way to securing your dream home.
Please remember that this is no substitute for professional or legal advice from a qualified expert.
We would be happy to introduce you to the right people, including an English speaking lawyer we’ve worked with for many years, or to work with a professional you choose.
Following our step by step guide will help you make sure there are no nasty surprises on the way to securing your dream home.
Please remember that this is no substitute for professional or legal advice from a qualified expert.
We would be happy to introduce you to the right people, including an English speaking lawyer we’ve worked with for many years, or to work with a professional you choose.
Step 1 – property viewing and negotiation
You’ll view properties in your chosen location and, once you’ve seen the property you want, Imperial Properties will negotiate your offer.
Be prepared to proceed with the transaction more rapidly than in other countries, mainly because there is no local authority search in Mallorca. Your lawyer conducts all the searches.
Be prepared to proceed with the transaction more rapidly than in other countries, mainly because there is no local authority search in Mallorca. Your lawyer conducts all the searches.
Step 2 – resale and new build property
Resale property
Your lawyer will check and approve the contract of sale or prepare a new one. He or she will then:
Check the property belongs to the seller
Make sure the property is completely free from debt
Check the property has the correct building permissions
Give you an estimate at this time of the taxes you can expect to pay on the purchase
Acquire and confirm the stated price on the deeds.
Check the property belongs to the seller
Make sure the property is completely free from debt
Check the property has the correct building permissions
Give you an estimate at this time of the taxes you can expect to pay on the purchase
Acquire and confirm the stated price on the deeds.
New build property
Your lawyer will make all necessary checks on the land and carry out a background and financial check on the constructor.
Step 3 - signing
Once your lawyer is completely satisfied, the option contract stating your intention to purchase will be signed and 10% of the purchase price will be released from your funds.
You are now committed to the purchase.
You are now committed to the purchase.
Step 4 – completion
A Notary formally completes all residential property sales. Your lawyer will set a Notary date which must be attended by:
The purchaser
The seller – you can give Power of Attorney if you need to and most people select their lawyer
The Notary, the public official whose duty it is to see the final legal transaction is carried out.
Step 5 – the public record
The Notary puts on public record that the title deed recording the sale/purchase has been signed in their presence and understood by both parties.
Step 6 – the deeds
You will be given a copy of the title deeds, the original will be presented to the appropriate land registry by your lawyer and registration will be completed.
A guide to costs and fees
Although the following is meant as a guide only, it’s an accurate summary of the costs you will need to pay.
Resale property – 7% transfer tax
New build – 7% transfer tax + 1% stamp duty
Plot of land – 16% VAT + 1% stamp duty
Notary costs – 1-3%, inclusive of municipal tax, legal fees and so on
Lawyer – usually 1-1.5% of the purchase price.
We would recommend you allow 10% of the purchase price to cover all taxes – 12% if you need a mortgage. This makes sure you budget correctly and you might even have change.
Resale property – 7% transfer tax
New build – 7% transfer tax + 1% stamp duty
Plot of land – 16% VAT + 1% stamp duty
Notary costs – 1-3%, inclusive of municipal tax, legal fees and so on
Lawyer – usually 1-1.5% of the purchase price.
We would recommend you allow 10% of the purchase price to cover all taxes – 12% if you need a mortgage. This makes sure you budget correctly and you might even have change.
Finance your property
If you require a mortgage for a purchase in Mallorca, and you’re a non-resident you’re normally allowed to borrow 75% of the purchase price or valuation, whichever is greater.
A resident of Mallorca can borrow 80%.
You can arrange the mortgage in Mallorca through a Spanish or English bank based here. Or you can use an English bank that deals with mortgages for Mallorca.
We have a good relationship with the banks we deal with regularly and we’d be delighted to introduce you. Contact Us
A resident of Mallorca can borrow 80%.
You can arrange the mortgage in Mallorca through a Spanish or English bank based here. Or you can use an English bank that deals with mortgages for Mallorca.
We have a good relationship with the banks we deal with regularly and we’d be delighted to introduce you. Contact Us