Buying a Property in Mallorca: Step-by-Step Guide

Buying a property in Mallorca can be a dream come true, whether it’s a holiday home, a permanent residence, or an investment. However, for foreigners, the process can feel complex due to Spanish regulations, taxes, and legal requirements.

This guide explains each step clearly, so you can purchase with confidence and avoid costly mistakes.

Buying property Mallorca

Step 1. Define Your Budget and Goals

Before starting the search, clarify:

• How much you can invest (including taxes and fees, approx. 10–12% of purchase price).

• The purpose of the property (holiday home, rental, residence permit, etc.).

• Financing options, whether through a Spanish mortgage or funds from abroad.

  
  

Step 2. Choose the Right Location

Mallorca offers very different lifestyles depending on the area:

• Palma: cosmopolitan city life with historic charm.

• Southwest (Andratx, Santa Ponsa, Portals): luxury villas, marinas, international schools.

• East Coast: family-friendly towns, beaches, more affordable apartments.

• Countryside (Inland villages, Tramuntana mountains): rustic fincas, nature, traditional lifestyle.

  
  

Step 3. Work with a Lawyer (Abogado)

Hiring a local real estate lawyer is essential for foreigners. They will:

• Verify the property is legal (no hidden building infringements).

• Review and draft contracts.

• Handle negotiations and protect your interests.

• Ensure the transaction complies with Spanish law.

Step 4. Get Your NIE Number

The Número de Identificación de Extranjero (NIE) is required for all property transactions in Spain.

• It’s your tax ID in Spain.

• Without it, you cannot sign the purchase deed.

• Your lawyer can request it on your behalf with a power of attorney.

  
  

Step 5. Due Diligence & Reservation Contract

Once you find a property:

1. Reservation Agreement: Small deposit (€5,000–€10,000) to secure the property.

2. Due Diligence: Your lawyer checks the title, debts, planning permissions, community fees, etc.

3. Private Purchase Contract (Contrato de Arras): Normally 10% deposit, with conditions for completion.

   
   

Step 6. Completion at the Notary

The final step is signing the escritura pública (title deed) before a notary.

• The buyer pays the balance of the price.

• The notary ensures legality and registers the deed.

• Keys are handed over, and you officially become the owner.

  
  

Step 7. Taxes and Costs

Typical costs when buying in Mallorca:

• Transfer Tax (ITP): 8–13% depending on price (for resale properties).

• VAT + Stamp Duty: 10% + 1.5% (for new builds).

• Notary & Registry fees: €1,000–€3,000 approx.

• Lawyer fees: usually 1% + VAT.

  
  

Step 8. After the Purchase

• Register utilities (water, electricity, internet).

• Pay annual property taxes (IBI, garbage collection).

• Consider home insurance and community of owners’ fees.

• If renting, check tourist rental license regulations.

  
  

Conclusion

Buying property in Mallorca is a secure and rewarding investment if you follow the correct steps. With professional legal guidance, a clear budget, and proper due diligence, you can enjoy your new home on the island without stress. Are you considering buying a property in Mallorca? Our legal team ensures a smooth, secure, and stress-free purchase. Contact COAST PROJECTS MALLORCA today for tailored advice.