Question 1

How do I buy a property in Mallorca?

Accepted Answer

The buying process in Mallorca is relatively straightforward. When you have chosen and property to buy the estate agent will negotiate a price acceptable to the buyer and seller along with general terms of sale and timescales for the deal. This document is generally known as an option contract, whereby the seller agrees to sell and he buyer agrees to buy having place a non returnable “option price” of generally 10%. Be prepared to proceed with the transaction more rapidly than in other countries. See Q&A “How long does it take to buy a property in Mallorca”.

Question 2

What Taxes do I pay when I buy a property in Mallorca?

Accepted Answer

When buying a property in Mallorca there is a scalable rate of taxes payable to the Balearic government based on the value of the property declared in the purchase contract (escritura) at the notary. In 2019 the rates of this tax are:

8% of the value from 0€ to 400.000€
9% of the value from 400.001€ to 600.000€
10% of the value from 600.001€ to 1.000.000€
11% of the value 1.000.001 and above

These taxes are payable only on the real estate element of the transaction, other items such as furniture and fitting are paid at flat rate of 4%. Some situations (such as properties to first time buyers and less than 200.000€ attract lower taxation, please contact us for details).

Question 3

What Taxes do I pay when I sell a property in Mallorca?

Accepted Answer

Sellers are liable to pay 2 main taxes upon completion:

Plus Valia, this tax is payable to the local council and is calculated based upon the number of years each owner has owned the property, a variable coefficient for each local authority and the “valor de suelo” of the property, this is essentially the rateable value of the ground or footprint of the property. As such, it cannot be easily estimated but if you contact us we can obtain a quotation on line for you very quickly in most cases.
Capital gains liability, as with all tax matters, this can be rather complicated to calculate and requires the assistance of a tax advisor in Spain. If you are a non resident tax payer in Spain, at the time of completion 3% of the total price of the property will be retained. See Q&A section “Why do I have a 3% retention when I sell a property in Mallorca?” for an explanation of this. This amount is a retention or prepayment against any liability to capital gains tax that you may have to pay on the gain of the sale. The base rate of this tax for non-residents is 19% although again this changes under certain circumstances.
For residents of Spain, the situation is more complicated as capital gains tax scales from 19% to 23% depending on exact circumstances. We can recommend a local tax advisor who will handle all of your tax affairs locally or from abroad.

Question 4

What is IBI?

Accepted Answer

IBI is an annual local tax payable to the council. In British terms, it is equivalent to council tax and provides for the provision of services locally such as schooling, infrastructure, local services and facilities.

Question 5

What is Basura?

Accepted Answer

This is another annual tax specifically collected in respect of rubbish and disposal of waste in the municipality.

Question 6

When do I pay IBI & Basura in Calvia?

Accepted Answer

Calvia collects both IBI & Basura annually, the tax year actually runs January 1 until December 31, however rather confusingly, the council takes the payment of these taxes in July/August.

Question 7

What is the notary and what part do they act in sale/purchase?

Accepted Answer

The notary acts as an independent overseer of the documents and contract between seller and buyer, it is their responsibility to advise either party of the implications of the clauses of the contract and ensure that both sides understand the contract fully. The notary has specific legal powers to endorse documents, ensuring that they comply with the local regulations and therefore validating the contents of the agreement.

Question 8

What happens in the notary when I buy or sell a property in Mallorca

Accepted Answer

The notary meeting to buy or sell is a rather formal and well organised even that brings together the seller(s) and the buyer(s) of the property. Both parties will sit collectively around a conference style table and the notary will proceed to read the contents of the sale/purchase contract. Each party can ask questions to clarify any doubts they may have. When all details are agreed and confirmed, the notary will ask each owner/buyer to sign the escritura (deeds of purchase) and then also counter sign the document themselves to validate it legally. At this point, the sellers will hand over the keys and the buyers will hand over the pre-prepared bankers drafts to conclude the sale & purchase. At this point, possession of the property is passed from seller to buyer.

Question 9

Can I get a mortgage in Mallorca?

Accepted Answer

Mortgages are freely available to both residents and non-residents. We can recommend mortgages from numerous local banks, generally with excellent long fixed arrangements at very low rates. Non residents can expect to borrow 70% of the total property price, residents can borrow upto 100% in certain circumstances.

Question 10

Do I need a bank account in Spain if I own a property in Mallorca?

Accepted Answer

The short answer is yes, the long answer is not always. In practice, it is very diffuclt to own a property in Spain without a Spanish bank account to service the costs of the property.

Question 11

What is an NIE number?

Accepted Answer

NIE (numero identificacion extranero) or foreigners number, is a reference issued by the Spanish government that follows you for life, enabling the tax, property register, banks and other institutions to find your details quickly and easily. All foreigners owning property, cars or accounts in Spain require a NIE number, please note, this number does not make you a resident!

Question 12

How do I get an NIE number?

Accepted Answer

Easily, either through direct application to the Spanish embassy in your home country or via a notary or other intermediary in Span. Expect the process to take around 6 weeks, although certain more expensive methods allow this to be reduced to only 24 hours or so.

Question 13

Can I buy or sell a property in Spain with a power of attorney?

Accepted Answer

Yes, this is a very common method of selling or buying when for various reasons the seller or buyer cannot attend the notary in person. Often the POA is given to lawyer or other trusted person who acts on trust on behalf of the other party. Giving power of attorney (poder in Spanish) to another person is very quick when the person giving the power is in Spain, just a 30 minute visit to a local notary and all is set. Setting a POA when the person is outside of Spain is easy but more costly and lengthy, the power giver will need to visit a notary in their home country and with a previously prepared and translated document, ask that local notary to verify the document and then send to the foreign office for the application of the “apostile de la haya”. This document then need to be sent back to the person who holds the power for them to present at the day of the sale/purchase.

Question 14

How long does it take to buy a property in Mallorca?

Accepted Answer

Transaction can be very fast, as little a just a few days, however in normal circumstance, you can expect from the point of signing an option contract to have around 4-6 weeks to completion. Remember, the option contract defines this timescale, so if bother parties agree, this can be much quicker or much longer.

Question 15

Why do I have a 3% retention when I sell a property in Mallorca?

Accepted Answer

In order to prevent non residents leaving the country without paying their obligation to capital gains tax, the tax authorities retain 3% of the price of the sale in order to go against any CGT that may be due. Upon the completion of the declaration of the taxes for the seller, if the amount of CGT is lower that this 3% then the difference is returned, equally any additional amount must be paid over the 3% value that was retained.

Вопросы и ответы Недвижимость на продажу на Майорке

Как купить недвижимость на Майорке?

Какие налоги нужно уплатить при покупке недвижимости на Майорке?

Какие налоги нужно уплатить при продаже недвижимости на Майорке?

Что такое IBI?

Что такое Basura?

Когда платить IBI & Basura в Кальвии?

Кто такой нотариус, и какую роль он играет в процессе продажи/покупки?

Что происходит в офисе нотариуса, когда я покупаю или продаю недвижимость на Майорке?

Могу ли я взять ипотеку на Майорке?

Нужен ли мне банковский счет в Испании, если я владею недвижимостью на Майорке?

Что такое номер NIE?

Как получить номер NIE?

Могу ли я купить или продать недвижимость в Испании по письменной доверенности?

Сколько времени занимает покупка недвижимости на Майорке?

Почему удерживается 3% при продаже недвижимости на Майорке?