Buyers Guide

The process of buying a property in Mallorca is easy but it is important to know the basics of the process before you start.

Once an offer is made and the purchase price is agreed by both buyer and seller, an Arras contract (or deposit contract) is prepared. This is typically handled by your lawyer here in Mallorca. If needed, we can recommend several Spanish lawyers who are fluent in English.

The Arras contract outlines all terms and conditions of the sale as agreed by both parties, including property details from the "Nota Simple," a document obtained from the land registry. The Nota Simple provides essential information about the property, such as whether there is an existing mortgage, debt related to the property, official m2 etc.

Once both parties agree on the contract details, the deposit contract is signed (which can be done via email), and the buyer pays a 10% deposit. This deposit, which can be transferred from a foreign bank account, is generally held in an independent notary account. 

.At this point, the property is taken off the market, and the sale is considered secure.

The Arras contract also specifies a final completion date agreed upon by both the buyer and the seller. 

Calculation of Taxes for Property Purchase

The total tax liability for buying a property in Mallorca is determined using a tiered structure. Each tier of the property value is subject to a different rate, as detailed below:

For the tier of €1 to €400,000, an 8% rate is paid.

For the tier of €400,001 to €600,000, a 9% rate is paid.

For the tier of €600,001 to €1,000,000, a 10% rate is paid.

For the tier of €1,000,001 to €2,000,000, a 12% rate is paid.

For the tier above €2,000,001, a 13% rate is paid.

On the day of the purchase, all terms in the deposit contract are transferred to the official purchase contract, which must be signed at a notary’s office in Mallorca. All parties must be present in Mallorca for the signing or, alternatively, grant Power of Attorney to their lawyer.

At the notary's office, the notary will carefully verify all documentation and read the contract aloud in both Spanish and your preferred language. 

When all parties are satisfied, the purchase contract is signed, and you receive the keys to your new home!

The entire purchasing process can range from one week to two months and upwards.

This time frame is part of the negotiation process. 

If you require a mortgage for your purchase, we work with a selection of reliable brokers and banks on the island. As an independent advisor, we can provide financial guidance and make relevant introductions if needed.

For property purchases in Mallorca, foreign buyers need a NIE, a non-resident ID number. You can apply for this yourself at the Spanish Embassy in your home country, or your lawyer in Mallorca can handle this on your behalf. We can assist you with this process if required.

As a property buyer in Mallorca, you will also need to open a local bank account as all property-related payments, including utilities, community fees, and council taxes, must be paid from a Spanish bank. 

We are here to guide you through all of these steps as needed.

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Mallorca Homes and Rentals
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Illetes, Calvia 07181

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