Buying Property in Mallorca

Options for finding your property include:

• Estate Agents (Inmobiliarias): Often multilingual and regionally focused. Commission is usually included in the asking price, and properties may appear with multiple agents at different prices.
• Property searchers: Independent specialists who shortlist properties for you. They may charge a fee or take commission.
• Notary (Notario): A public official who legalises transactions, confirms the title, checks for debts and ensures all documents are legally valid.
• New builds & developments: Often sold directly by developers. Research their track record before committing.

Independent legal advice is essential. Choose a lawyer registered with the Bar Association and not recommended by the agent. You will also need a NIE number to handle taxes.

It’s wise to explore mortgage options before you start your search.

Buying in Mallorca generally involves:

• Opcion de Compra: A binding contract once your offer is accepted, with a deposit paid. It covers property details, fees, mortgage arrangements and exit clauses. New builds have staged payment plans. A ‘clause crio’ can protect against the seller withdrawing.
• Mortgage arrangements: Non-residents usually borrow a portion of the property value. Proof of income, life insurance and a Spanish bank account are required. Brokers can help with language and local contacts.
• Notary instruction: The notary ensures all documentation is correct and transfers the title.
• Completion: The final deed (Escritura) is signed by all parties. Funds and taxes are paid, insurance confirmed, and the deeds are registered in your name. Power of attorney can be used if you can’t attend.

Before completion:

• Obtain a Nota Simple from the Land Registry to check ownership, debts and restrictions.
• Verify planning permissions, land boundaries, licences, and utilities.
• Have a lawyer fluent in English and Spanish guide you.
• Arrange a survey, ideally from an RICS-accredited surveyor.
• Research similar properties to ensure a fair price.
• Confirm who pays local taxes (IBI, Plusvalia) and any outstanding utility bills.

Expect additional costs on top of the purchase price, usually around 10%, including:

• Legal fees
• Notary and land registration fees
• Estate agent fees
• Property transfer tax or VAT (for new builds)
• Plusvalia tax (often the seller’s responsibility)
• Mortgage arrangement fees
• Currency exchange costs if transferring funds from abroad

For new builds, deposits should be bank guaranteed, and off-plan properties must have a certificate of completion signed by a registered architect.

Spanish banks will lend a portion of the property’s value based on a valuation, and you’ll need to provide proof of income, tax returns and life insurance. There are a few ways to arrange a mortgage: you can go directly through Spanish banks and lenders, each with their own criteria and fees, or use a mortgage broker who can offer advice, access multiple lenders and help navigate any language barriers. Some estate agents also provide mortgage services, though these tend to be less independent than a broker.

As a property owner in Spain, you’ll need to keep an eye on a few taxes. Wealth tax is charged based on the value of your property and is paid each year. It’s also a good idea to make a Spanish will to cover your property and assets, which can save your family a lot of headaches when it comes to inheritance.

You'll find local taxes include:

• Basura – waste collection
• IBI – annual property tax

These are collected by the local SUMA office and vary by municipality.

Foreign property taxes & legalities

Don’t rely solely on agents or sellers, always check for yourself. Owning property abroad can affect your UK and Spanish taxes, especially for:

• Rental income
• Capital gains on sale
• Succession and inheritance rules
• Double taxation agreements

Independent tax and legal advice is essential before buying.