Our Concierge-Style to Buying in Mallorca
Imagine owning a piece of paradise in Mallorca. We can make that happen.
We cover the entire spectrum of property types and cater to a wide range of budgets to help you find and purchase your very own dream home here in Mallorca. Our personal, concierge-style service ensures we have your best interest at heart through your buying journey.
Following is our smoothly managed buying process that seemingly guides you every step of the way to make your dreams of living in Mallorca a reality.
In this initial stage, we focus our time and effort on understanding your lifestyle and needs by uniting them to a property type, location and any other features obtainable within your budget.
To save you time and energy, we present you with the most suitable properties based on your specific requirements, dreams and budget, making the whole process a pleasure.
We work with you to whittle down the best potential properties to your shortlist. Once you have a shortlist of properties or a specific property in mind, we arrange the viewing so you can enjoy the property from the moment you see it.
We conduct basic due diligence on all properties we present to you.
Unfortunately, we cannot assume any legal responsibility for your final due diligence. Therefore, we assist by referring you to our highly regarded solicitor partner, who will support and guide you through the entire due diligence process.
Arranging finance at the right time is essential to a smooth buying process. We coordinate in conjunction with the legal process. We have highly trusted financial partners across the Mallorcan financial sector and work diligently with professional brokers to offer you the most suitable finance package.
We encourage all buyers to get in touch with our highly trusted financial partners early, even before your initial search. That way, you already know your realistic buying capabilities and financial situation.
We work with you and your solicitor to ensure that your offer is attractive and made within the appropriate time frame to be accepted by the property seller.
We leverage our vast knowledge, local insights and expertise to ensure your purchase negotiations are smoothly managed and successfully settled.
In addition to the standard legal requirements, we ensure that you can successfully navigate through any further legal obligations to complete the property purchase. We are proudly partnered with highly regarded expert solicitors of the Mallorcan property industry and will happily refer you to help with a smooth purchasing process.
From start to finish, we organise your entire property purchase to guarantee a successful and stress-free purchase. We go that extra mile to ensure we have your best interest at heart throughout your buying journey.
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Stress-Free Property Buying Experience
It’s extremely important to understand the local laws and your rights when buying property abroad. Being prepared and engaging with an agent will give you the upper advantage and eliminate risks when buying abroad. That’s where we come in…
Our tips for buying in Mallorca
✔ Obtaining an NIE number (tax identification number for foreigners)
An NIE number acts as a tax identification number and is mandatory for all foreigners conducting any legal or tax activity in Spain.
✔ Conduct a property examination before purchasing
Once you have decided to purchase a property, ask your solicitor to do all of the essential due diligence containing the main aspects of the property, especially regarding its legality.
✔ Investing in Property
Investing in property is a proven path to generate income (i.e., earn a return on the investment) through rental income or appreciation.
- If you intend to convert your investment into a holiday rental, it is vital to seek legal advice to understand the governing laws associated with touristic rental licensing. Before purchasing a property, check that the property has a valid touristic rental license. Applying for a touristic rental license is a daunting procedure, and depending on the local laws and zoning, might result in being refused.
- Properties less than five years old are not authorised to rent to tourists or obtain a tourist rental license.
- Currently, offering an apartment as a holiday rental is illegal, and failure to comply can result in penalties of up to €40,000.
✔ Understanding contracts when purchasing
In most transactions, an Option or Private Purchase Contract is signed with deferred payment of the price. In Spain, all property purchase deeds must be signed in front of a Notary chosen by the buyer. Public Deeds can be directly granted when both parties agree that the buyer has the necessary financing for the final purchase price, a suitable payment method, the content of the deeds, and any other arrangements deemed appropriate for the completion of the sale.
An Option Contract for the sale of a property in Spain is unusual but can be useful from time to time. In return for a deposit, the potential buyer effectively has the first refusal on a property purchase for a specified time frame (usually between 1-3 months) and must be defined in the contract. The potential buyer can take up the option to buy the property anytime during this period, but if the buyer withdraws from the purchase, they lose their deposit. On the other hand, the buyer can exercise their right to purchase anytime within the stipulated time frame but if the seller is not in a position to sell, the buyer is entitled to the full refund of their deposit.
This is similar to the sort of contracts you would expect when buying a property in the UK. The Private Purchase Contract in Spain commits the buyer to purchase the property and binds the vendor to sell to the buyer and outlines the price, conditions, property description, timeframes for particular issues and any other arrangements deemed appropriate to the sale.
In Spain, it is commonplace to pay a 10% deposit of the purchase price upon signing a Purchase Contract.
If the buyer withdraws from the purchase, they normally forfeit their deposit, although in some circumstances the buyer may be limited to only lose a percentage of their deposit. In the case where the seller may abstain from the sale of the property, they can incur a penalty of paying double the amount paid in respect of the deposit. These contracts are known as arras of withdrawal “Contrato de Arras Penitenciales”, because they allow the termination of the contract legally, losing the deposit when the buyer refrains from the purchase or paying double the deposit when the seller withdraws from the contract. They are only considered as penitential when expressly stated in the contract.
Before signing a Private Purchase Contract for a property in Spain your lawyer/solicitor is obliged to negotiate the terms of the contract and carry out all the appropriate checks on the property in terms of property registry, utilities, planning and the rest of their due diligence.
✔ Securing the Public Deed of Sale:
Granting the Public Deed of Sale is indispensable for the registration of the acquired property in the name of the buyer in the Property Registry.
Public Deeds are granted in front of a Notary, including all the legally required documentation, proof of payment/s and the last receipt of the Municipal Property Tax “IBI”. In addition, the vendor is required to hand over the Certificate of Occupancy, the Energy Efficiency Certificate and any other necessary documents associated with cases regarding rural, urban or point ownership sales.
✔ Costs Associated with the Purchase:
When calculating the costs of purchasing property in Mallorca buyers must also consider the overheads of the purchase. These costs depend upon the actual sale price.
Taxes applicable to buyers purchasing property in Mallorca sit in the estimated ranges below:
- Notary fees (estimated between 600€ – 2.000€) and charges of the property register (approx. between 300€ – 1.000€)
- 10% VAT on the purchase of new properties, known as IVA
- ITP – Purchase Tax for purchases of not-new/resale properties (approx. calculated as follows: <400.000€ = 8%, 400.000€ – 600.000€ = 9%, 600.000€ – 1.000.000€ = 10%, >1.000.000€ = 11%)
- 1,2% stamp duty which may occasionally arise known as AJD “Actos Jurídicos Documentados”
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