Buying & Selling Property in Mallorca — Interactive Guide

The Complete Guide: Buying & Selling Property in Mallorca

Everything below is the knowledge our assistant works with — researched and verified against official Spanish and Balearic sources (updated July 2026). Use it as a reference, and ask the assistant above whenever you need a specific answer.

The buying process, step by step

A safe purchase in Mallorca runs three tracks in parallel: commercial negotiation, legal and planning review, and financial preparation. The typical sequence:

• Preparation (1–6 weeks): NIE application, independent lawyer, proof of funds, mortgage pre-approval if needed. The NIE often dictates the calendar — start early.
• Offer & reservation (days): a written offer stating price, furniture, timings and conditions; a reservation payment takes the property off the market for a short period. Never accept “non-refundable” wording without clear refund conditions.
• Due diligence (1–3 weeks; longer on rural land): Land Registry extract, Catastro, planning status, community of owners, occupancy, debts and charges. The critical checks should be finished before signing an arras contract.
• Arras contract: the private purchase contract, usually with a 10 % deposit (customary, not legal). Under penitential arras (art. 1454 Civil Code), a withdrawing buyer loses the deposit; a withdrawing seller returns double. The wording decides everything — confirmatory, penitential and penal arras have very different effects.
• Mortgage (3–8 weeks): valuation, the FEIN information sheet and a mandatory free notary appointment before signing (Law 5/2019). If your arras contract has no financing condition, a rejected mortgage does not release you.
• Notary deed (typically 4–8 weeks after arras): the notary verifies identity, title and charges; payment is made by banker’s draft or OMF transfer; keys and possession are handed over.
• After completion: taxes filed within one month (ATIB), then registration at the Land Registry, and utility, community and council transfers.

Key documents — what they are and where to get them

NIE — foreigner identification number

Required by every buyer and seller. Apply with form EX-15, a valid passport, the economic reason (property purchase) and fee form 790-012 (9,84 €). Three routes: in Spain (Policía Nacional, by appointment), at a Spanish consulate in your country (allow roughly 2–5 weeks), or through a representative with a specific power of attorney. The NIE is an ID number only — it grants no residence rights.

Nota simple — Land Registry extract

The Registry’s summary of description, ownership and charges (mortgages, embargoes, easements). Ordered online from the Colegio de Registradores (9,02 € + VAT, usually issued within hours). It should be refreshed before arras and again before the deed. Note: it does not prove planning legality.

Cédula de habitabilidad — habitability certificate

Issued via the Consell de Mallorca; needed in practice for transfers, rentals and utility contracts. If it is missing or expired, find out why before committing — renewal may not be straightforward if works were done without permits.

Energy performance certificate

Mandatory to sell or advertise. Issued by a technician (typically 100–300 € in fees) and registered with the Govern Balear. Valid 10 years (5 years for a G rating).

Community of owners certificate

The seller must present a certificate of zero debt (or the buyer expressly waives it — not recommended: the property answers for the current year plus the three previous years of community fees). The administrator must issue it within 7 calendar days.

Power of attorney

Lets you buy or sell without travelling: granted before a Spanish notary, at a Spanish consulate, or before a foreign notary with Hague Apostille and sworn translation. Have the draft reviewed in Spain first — a generic power is often insufficient.

Payment and source of funds

Payment at the deed is made by nominative banker’s draft or OMF transfer. Banks, notaries and agents are subject to anti-money-laundering rules: expect to document the origin of your funds (tax returns, sale of assets, inheritance, statements). A Spanish bank account is not legally mandatory but practically essential.

Taxes and costs

Resale property — ITP (transfer tax, Balearic scale)

Charged on progressive brackets over the taxable base (the higher of the price and the official reference value):

• Up to 400.000,00 € → 8 %
• 400.000,01 – 600.000,00 € → 9 %
• 600.000,01 – 1.000.000,00 € → 10 %
• 1.000.000,01 – 2.000.000,00 € → 12 %
• Above 2.000.000,00 € → 13 %

Worked examples: 500.000 € → 41.000,00 € · 1.000.000 € → 90.000,00 € · 1.500.000 € → 150.000,00 € · 2.500.000 € → 275.000,00 €. Reduced rates and youth exemptions exist but carry strict residence, income and value limits that rarely apply to international purchases.

New build — VAT + stamp duty

First delivery by a developer: 10 % VAT on the home (and up to two parking spaces bought together) plus Balearic stamp duty (AJD) of 1,5 % — or 2 % where the value is 1.000.000,00 € or more.

When you sell

• Plusvalía municipal: municipal tax on the increase in land value, paid by the seller (two calculation methods; you may choose the lower; no tax if there was no gain in land value).
• Capital gains: residents pay savings-scale IRPF (19 %–30 %); non-residents generally 19 % under IRNR.
• 3 % retention: when the seller is non-resident, the buyer withholds 3 % of the price for the tax office (form 211); the seller then settles the real gain via form 210 and claims any refund.

Transaction costs

Orientative for a standard residential purchase: notary 600–1.500 €, Land Registry 400–1.000 €, gestoría 300–600 €, plus your lawyer’s fees. Since 2018, mortgage stamp duty is paid by the lender, not the borrower.

Selling your property in Mallorca

Preparation sells — and protects you legally:

• Confirm title and charges with a fresh nota simple; check what the Registry and Catastro say against reality (unregistered extensions and pools must be reviewed before advertising).
• Assemble the file: building licence, first occupancy, cédula, energy certificate, community certificate, IBI receipts.
• Calculate your net proceeds: outstanding mortgage and cancellation costs, agency and legal fees, plusvalía municipal, capital gains tax and — for non-residents — the 3 % retention.
• At the deed, part of the price can be paid directly to your bank to cancel the mortgage; registration cancellation is a separate, later step.

International buyers: what changes

• EU citizens (e.g. Germany): buy freely with passport + NIE. Residence over three months is a separate registration (EX-18) — distinct from the NIE.
• UK citizens post-Brexit: can buy freely, but are third-country nationals: Schengen 90/180 rules for stays, apostille + sworn translations for documents, and — for property outside consolidated urban areas (especially rural land) — a military authorization may be required before buying. Urban homes in towns like Santa Ponsa are normally excluded, but the exact plot classification must be checked.
• Golden Visa: abolished. The residence-by-investment route ended on 3 April 2025 — no property purchase grants residence today.
• Tax residence: staying more than 183 days per calendar year (or having your main economic interests in Spain) makes you Spanish tax resident — a separate question from nationality or visas, with significant consequences worth planning.

Special cases to treat with extra care

• Off-plan purchases: stage payments must be secured by bank guarantee or insurance in a separate account — ask for your individual certificate.
• Inherited property: the succession must be documented, taxed (6-month deadline) and registered before or together with the sale; international successions add EU regulation questions.
• Rural land (suelo rústico): the general minimum plot for a new dwelling is 14.000 m², but protections and planning rules can prohibit building regardless of size. Never buy “as buildable” without a planning certificate for that exact plot.
• Holiday rental licences (ETV): never assume a licence transfers with the property. Current Balearic rules restrict new licences (none in apartment buildings), so verifying the file at the Consell de Mallorca is essential if the licence is part of the value.
• Property with charges: mortgages are cancelled at completion with part of the price; embargoes need a confirmed mechanism with the creditor before you pay anything.

Frequently asked questions

Can I buy without coming to Mallorca?

Yes — with a properly drafted power of attorney (see above). NIE, bank account, arras, deed and taxes can all be handled by your representative.

How long does a purchase take?

A straightforward cash purchase: often 4–8 weeks from arras to deed. With a mortgage: nearer 6–12 weeks. NIE delays, planning issues or charges can extend any timeline.

What should I budget on top of the price?

For a resale, roughly the ITP per the bracket scale plus 1–2 % for notary, registry and professional fees. For new builds, 10 % VAT + 1,5 %–2 % AJD plus the same professional costs.

Is the asking price the tax base?

Not necessarily. Since 2022, the official cadastral reference value sets a floor: tax is due on the higher of price and reference value. Check it before you offer.

Do I need a lawyer if there is a notary?

Yes. The notary controls the legality of the deed but does not run your due diligence — planning, community, tenancy and tax positions are your adviser’s job.

Who pays the IBI in the year of sale?

Legally, whoever owns the property on 1 January. In practice the parties usually agree a pro-rata split in the deed.

What if the property has an unregistered extension?

It needs reviewing before you commit: options range from legalisation to a technician’s certificate of age — but age alone does not make works legal.

Is my deposit protected if problems appear?

Only if the contract says so. Condition the reservation and arras on satisfactory legal review and financing — a well-drafted contract is your protection.