Buying a property in Mallorca or Spain is different from the procedure in your home country.
We at Neptunus International Real Estate present you the most important points to consider and what you should already do before buying real estate in Mallorca.
We would be happy to recommend partners from our professional network who can assist you legally with the purchase of a house in Mallorca or with the application for the documents. Please feel free to contact us.
What is the procedure for buying a property in Mallorca?
A typical procedure for the purchase of a house in Mallorca is first the conclusion of a private written preliminary contract (so-called option contract or also contract with penalty payment), going to the notary, paying the taxes and finally the registration of the new owner in the land register.
What preparatory steps are recommended?
You should apply for a Spanish tax number, a so-called NIE number, at a very early stage. This is a foreigner identification number, which is then also valid as a tax number in Spain. Depending on the workload of the Spanish immigration office, it can take several months from the application to the issuance of the NIE number. Likewise, you should open a Spanish bank account in good time, on the one hand to be able to issue the bank checks that are customary here in Spain for the payment of the purchase price, and on the other hand to have the ancillary costs of the house settled through it later.
What is the option contract?
In the option contract, one acquires an option right for the property in return for payment of approximately 10 percent of the purchase price sum. During the option period, which can be freely chosen but is usually around three months, the buyer then has the opportunity to put the purchase object through its paces.
Why is notarization important in Spain?
While in Germany a property cannot be purchased without notarization, this is generally possible in Spain, but not advisable. A purely private contract of sale is not sufficient to register the new owner in the land register. For this purpose, notarization is always mandatory.
Can I be represented by my lawyer before the notary?
Yes, representation by your own lawyer is possible in principle. All that is required in advance is the issuance of a corresponding notarial power of attorney. This can also be signed before a German notary, taking into account some special features.
What taxes are due when buying a house in Mallorca?
After the purchase of the property, typically the land transfer tax has to be paid, which is currently between 8 and 11 percent depending on the purchase price. However, there may also be constellations in which the Spanish VAT (either 21 or 10 percent) and the so-called stamp tax of legal documents.
What should one plan for the ancillary acquisition costs in Mallorca?
To be on the safe side, it is recommended to calculate between 10 and 15 percent of the purchase price for ancillary costs. In this calculation, the following ancillary acquisition costs are taken into account: Land transfer tax, fees for lawyer and notary, land registry fee.
What needs to be considered after the acquisition?
After the acquisition and payment of taxes, the new owner must still be registered in the land register. Likewise, the utility contracts (electricity, gas, water) must be re-registered to the new owner.
