Everythink you need to know when buying a proberty in Mallorca and how we can support you.
A beautiful island, over 300 days of sunshine a year and the spectacular mountain and landscape make this the most beautiful island in the Mediterranean.
There is no doubt that anyone who visits this Mediterranean jewel
Mediterranean jewel will be thrilled by it, and will therefore
decides to buy a property. Either you use it as a holiday home or you make it your permanent residence. Are you seriously thinking about buying your dream property in Mallorca, but you are not sure what you need to know?
We are here to help you take your first steps and find your new home or investment.
Preparation before buying
If you do not have sufficient knowledge of Spanish to handle the purchase of a property, you should definitely contact a German-speaking estate agent. At Lieb & Partner we speak and write 5 languages – with us at your side you will avoid communication problems throughout the process. We also inform you about the legal requirements when buying a property in Spain and help you with the preparation before the purchase.
You find your dream property?
After informative viewings, you have now found your dream property and come to an agreement with the current owner of the property. At this stage, we recommend that you consult a lawyer. We work with renowned expert lawyers, carry out many legal checks and accompany you to the end.
In practice, it is common to record the purchase of real estate in a private (preliminary) contract. In order to be registered in the land register, however, it is necessary to sign a deed of sale (“escritura”) before a notary. Only this entry in the land register protects the buyer from alleged or actual rights of third parties. As a rule, either an option contract “opción de compra” or a down payment contract “contrato de arras” is concluded as a preliminary contract.
The notarial deed of sale is required so that the necessary entry as the new owner can be made in the land register. Only after registration in the land register is the new buyer also protected against third parties. The notarial deed of sale with appendices can easily be over 20 pages long and it is always written in Spanish. Although there are notaries who read out the deed in German at the appointment, it is still advisable to have a German translation available before signing in order to be able to understand the text of the deed exactly.
How high are the ancillary purchase costs in Mallorca?
Experts recommend calculating 10% to 13% additional costs for the valuation of the property, the notary fees, the entry in the land registry and the corresponding taxes. These costs must be added to the 20% you need in equity. Note that these additional costs also apply if you do not need financing. However, the total amount to be paid depends on whether you are buying a new-build property or a pre-owned property and on the purchase price. Here we summarise the most important incidental costs and taxes when buying a property in Mallorca (2021) for you:
Property purchase – Additional costs:
- Land register entry
- Taxes when buying a new build property in Spain
- Real estate transfer tax when buying a property in Spain
Additional costs when taking out a loan
- Real estate valuation
- Opening fee