How to Buy a Property on Mallorca
It’s pretty easy to imagine how good life will be with your own home in Mallorca always near to the sea and the beautiful nature that Majorca is offering you.
But when you get all practical and start thinking about contracts and lawyers, that lovely picture can go a understandably turn a little fuzzy.
So we’re here to help you bring it all back into focus again and make the whole buying process as comfortable and clear as possible.
Buying properties in Majorca isn’t difficult, it’s just a little different to what you are used of. A lot of the processes are pretty similar to other European countries, but of course with different names and, of course, it’s all in Spanish or even Catalan!
We’ll be there to guide you all the way and help make sure everything goes smoothly.
All our expertise is at your disposal also our preferred partners such as reputable and highest quality developers, banks and financial advisors are there to assist you.
We can recommend an English speaking lawyer who will take care of all the legalities for you and make sure your interests are protected at every stage. Our financial partners, SOLID CONSULTING can help you with all the financial aspects of your property purchase in Mallorca.
useful information
Costs to consider when you buy properties in Mallorca
As a rule of thumb you should allow 10% of the purchase price for all the costs involved with buying your villa, apartment or finca in Mallorca.
Costs to include when you buy a property on Mallorca:
Legal & Notary Fees.
Legal fees are normally between 1% and 2%of the purchase price plus Value Added Tax (IVA), currently at 16%.
Notary fees are fixed by law and are based on a sliding scale depending on the amount of land and size of property. Fees usually amount to between 1% and 2% of the declared value of the property.
Land Registry Fees.
To register the new owner at the Land Registry costs around 60% of the notary fees.
Added Value Tax ('Plusvalia').
This is a land tax based on the increased value since the last sale. It’s normally payable by the seller but it can be stipulated that the buyer has to pay. That’s something for your lawyer to negotiate.
Transfer Tax (ITP).
At 7% of the purchase price on resale properties. If you’re buying from a developer, this is replaced by Value Added Tax (IVA) at 7% plus Stamp duty at 0.5%.
If you have a Spanish mortgage.
Allow an additional 1% for registering your mortgage and a 1% arrangement fee.