A Complete Guide to Buying Property in Mallorca as a Foreign Investor

By marketing@omegabaubetreuung.comPosted

A Complete Guide to Buying Property in Mallorca as a Foreign Investor

Mallorca remains one of Europe’s most desirable locations for homebuyers seeking a Mediterranean residence, holiday home, or solid investment. If you are a foreign buyer, the process is straightforward — but understanding the steps will ensure a smooth and secure purchase.

1. Obtain Your NIE Number

The NIE (Número de Identificación de Extranjero) is required for:

  • Buying property
  • Opening a bank account
  • Paying taxes

You can obtain it at a Spanish consulate or in Mallorca through a gestor.

2. Open a Spanish Bank Account

Although not mandatory in all cases, having a Spanish account simplifies the process:

  • Utility payments
  • Tax payments
  • Transaction fees

Most banks offer English-speaking advisors.

3. Find a Local Lawyer (Highly Recommended)

A qualified property lawyer in Mallorca will:

  • Verify property documents
  • Check licenses and legality
  • Prevent hidden charges
  • Represent you during the signing

This step ensures legal safety.

4. Reserve the Property

Once you agree on a price, you sign a reservation contract and pay a small deposit (usually €5,000–€10,000).
The property is then taken off the market.

5. Sign the Private Contract (10% Deposit)

After due diligence, you sign the Arras contract and pay typically 10% of the purchase price.

It legally commits both buyer and seller to the transaction.

6. Final Signing at the Notary

The purchase is finalized at the notary, where:

  • The deed is signed
  • Final payment is made
  • Keys are handed over

Congratulations — you now own a property in Mallorca.

7. Taxes and Additional Costs

For resale properties:

  • ITP Transfer Tax: 8–13%
  • Notary & Registry: €1,000–€3,000
  • Legal fees: 1% approx.

For new-builds:

  • VAT (IVA): 10%
  • Stamp Duty (AJD): 1.5%

Total costs are typically 10–13% above the purchase price.

8. Financing Options

Foreign buyers can get Spanish mortgages covering:

  • Up to 70% of the property value
  • Terms up to 25–30 years

Banks usually require proof of income and credit history.

Buying a property in Mallorca as a foreigner is a clear and transparent process. With expert guidance and proper planning, you can secure a valuable investment in one of the Mediterranean’s most sought-after locations.