How to Avoid Legal Pitfalls When Buying a House in Mallorca

Buying a house in Mallorca is a dream for many foreigners — but without the right legal guidance, it can quickly turn into a nightmare. From unclear property titles to hidden debts, there are several legal pitfalls buyers need to be aware of. In this guide, Coast Projects explains the most common risks and how to avoid them, so you can purchase safely and confidently.

Avoid common legal issues when purchasing property in Mallorca

1. Unclear Property Titles and Ownership

One of the biggest risks in Mallorca’s property market is buying a house without clear ownership.

• Always verify the Land Registry (Registro de la Propiedad) to ensure the seller is the rightful owner.

• Check for co-owners, inherited property issues, or disputes.

At Coast Projects, our real estate lawyers handle a full due diligence check before any purchase contract is signed.

2. Hidden Debts and Liens

In Spain, debts attached to a property (unpaid community fees, mortgages, or taxes) are transferred to the new owner.

• Confirm if the property has any outstanding mortgages.

• Request proof of payment for utilities and community fees.

We make sure that all debts are cleared before you buy — protecting you from expensive surprises later.

3. Building Permits and Illegal Constructions

Many charming fincas or houses in Mallorca include unregistered extensions or illegal renovations.

• Ask for the Cédula de Habitabilidad (habitability certificate).

• Verify that all works have the proper municipal permits.

Our project management team also evaluates whether a property can be renovated legally.

4. Tax Misunderstandings

Foreign buyers often underestimate the taxes involved:

• ITP (Transfer Tax): usually 8–11% depending on the price.

• Plusvalía Tax: municipal tax payable on the increase in land value.

• VAT (IVA): applies to new builds instead of ITP.

We guide you through every tax obligation to avoid unexpected costs.

5. Contractual Pitfalls

Preliminary contracts, deposits, and private agreements often include vague or unfair clauses.

• Never sign a contract without a lawyer’s review.

• Ensure there are clear penalties for delays or breaches.

Coast Projects drafts and negotiates contracts to safeguard your interests.

6. Residency and Legal Requirements for Foreigners

To buy in Spain, non-residents need an NIE number (foreigner’s ID). In some cases, you may also want to apply for a Golden Visa or Digital Nomad Visa.

Our legal team not only assists with the purchase but also with your immigration and residency needs.

Conclusion: Secure Your Dream Home in Mallorca

Buying property in Mallorca should be exciting, not stressful. With the right legal advice, you can avoid costly mistakes and enjoy your new home with total peace of mind.

At Coast Projects, we offer complete real estate legal services: due diligence, contracts, taxes, and project management. Contact us today for a free initial consultation and let us guide you safely through your Mallorca property purchase.