Buying Property in Mallorca: A Step-by-Step Guide (2025)
Purchasing property in Mallorca is an exciting opportunity, but the process can be complex, especially for non-residents. This guide provides a clear roadmap to help you navigate every stage of buying real estate on this stunning Spanish island.
1. Define Your Budget
Budget for purchase taxes, independent legal advice, notary and registration fees, and any renovation work. The total depends on whether the property is a resale or a new build, its price, and the buyer’s circumstances. Ask your lawyer for a property-specific cost estimate before agreeing a deposit.
This article reflects a 2025 overview. For a newer explanation of the process, taxes and due diligence, read our 2026 Mallorca buyer’s guide and confirm current rates with your lawyer.
Mortgage Options: Spanish banks typically finance up to 70% for non-residents. It’s crucial to explore the best rates and terms. Some banks offer better conditions if you open an account or use their financial services. Consulting a financial advisor can help secure the best deal.
2. Legal Requirements
Non-Resident Property Ownership: International buyers need a NIE (Número de Identificación de Extranjero)—a tax ID required for transactions. You can obtain it through a Spanish consulate or in Spain, and the process usually takes a few weeks.
A Spanish NIE is needed for the purchase and related tax administration. Ongoing tax obligations depend on residency, the property’s use and the owner’s circumstances; an independent tax adviser should confirm which returns apply.
Title Verification: Ensure the property has a clear title deed with no debts or legal issues. A Nota Simple from the Spanish Land Registry provides a summary of the property’s status. Have a lawyer review it to avoid hidden complications.
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3. Hire a Property Lawyer
A real estate lawyer (abogado) is highly recommended to:
Verify legal documents and ownership status.
Ensure no outstanding debts or encumbrances.
Oversee the transaction process and registration.
A notary is also required for the final signing of the deed, ensuring legal compliance and registration.
4. Making an Offer & Negotiation
Reservation Agreement: Secure the property by signing a contract and paying a deposit while due diligence is completed.
Negotiation: Prices can often be negotiated, especially if the property has been on the market for some time.
Pre-Contract (Contrato de Arras): This binding agreement requires a 10% deposit, outlining the sale terms and timeline.
5. Taxes & Fees
Property Transfer Tax (ITP) applies to resale purchases. The applicable Balearic rate depends on the price and any reliefs; confirm the current calculation with your lawyer.
New-build purchases generally involve VAT (IVA) and stamp duty (AJD) instead of resale ITP. Ask your adviser to confirm the applicable rates and any special cases.
Notary and Land Registry fees vary with the transaction. Include them in a written estimate of completion costs.
Independent legal fees depend on the scope of work and the property. Request a written quote before instructing a lawyer.
6. Finalizing the Purchase
Final Contract (Escritura Pública): Signed before a notary, confirming the sale and transferring ownership upon payment.
Land Registry Update: The property is officially registered under your name.
7. Post-Purchase Considerations
Utilities & Maintenance: Set up water, electricity, and internet services.
Residency: If staying over 90 days, apply for residency based on EU/non-EU status.
Tax Responsibilities: Be aware of income and capital gains taxes, especially if renting or selling.
By following these steps, you’ll be well-prepared to purchase property in Mallorca smoothly and confidently.
