Your Ultimate Guide to Acquiring Property in Mallorca

4 min readJul 26, 2023

Purchasing a property in Mallorca can be a monumental life event. Whether you’re a current resident of the area or an overseas investor looking to establish residency in Spain, this guide aims to provide you with all the essential information you need. The first crucial step is finding a reputable lawyer with ample experience in assisting clients with their property purchases in Mallorca — this can greatly simplify the process at every stage.

11 Key Steps to Purchasing a Property in Mallorca: A Detailed Summary

Dive into Research: Delve deep into the property market, focusing on areas in Mallorca where you envision your future home.
Crunch Those Numbers: Estimate your budget and determine the type of property you can comfortably afford.
Enlist a Skilled Lawyer: Engage a local legal expert who specializes in Mallorca’s property law.
The Hunt Begins: Begin your property search, going through listings that align with your needs and financial plan.
Haggle Wisely: Work with your lawyer to negotiate the best possible deal with the seller.
Securing Your Pick: Sign a Reservation Contract to hold the property while you handle the administrative work.
Acquiring an NIE: Obtain your NIE (foreigner identification number), which is necessary to finalize the purchase.
Inspect Your Investment: Arrange for a property inspection to uncover any potential issues.
Tackle the Legalities: Complete all required legal procedures, such as title searches, preparing and signing contracts.
The Big Payday: Make the final payment and transfer the property ownership into your name.
Official Registration: Register your new property under your name with the Spanish Land registry.

The Importance of Research

Embarking on a property purchase in Mallorca starts with thorough research. As a sizeable island, Mallorca boasts various regions with diverse price ranges to pick from. Do you fancy a sea view? Perhaps you prefer a mountain backdrop or the urban vibrancy of Palma? Maybe the rustic countryside calls to you? Our extensive guide on moving to Mallorca details these considerations in depth.

Establishing Your Budget

Determining your exact budget is crucial and should be based on the percentage of the purchase price you can comfortably pay upfront. Typically, Spanish residents can secure financing for 70–80% of the property price, while non-residents might only receive 60–70% financing.

Hiring a Trustworthy Lawyer

Engaging a competent legal professional is a significant step in your property acquisition journey. They can assist in revealing any crucial information related to the property’s history or any pre-existing debts.

Discover Your Dream Property

A practical first step is to set up property listing alerts using a platform like Idealista. Here, you can set your preferred locations, price range, and other property characteristics. Additionally, browsing through various real estate agents’ websites and social media pages in Mallorca can be fruitful.

Negotiating the Price

Upon finding your ideal property, it’s time to negotiate the purchase price. Having a skilled lawyer on board will simplify the seller negotiations.

Signing a Reservation Contract

Your legal advisor can assist in drafting an option contract, including the agreed purchase price, deposit amount, relevant timelines for payments and finalization, and any included property furnishings.

Securing an NIE

The NIE serves as your identification number in Spain. If you haven’t secured one before starting your property search, obtaining this becomes an essential step in the purchase process. Your lawyer can also manage this paperwork on your behalf.

Inspecting the Property

Before finalizing the deal, it’s prudent to have a comprehensive property inspection conducted to spot any potential issues. Assess any restrictions on future development or any investment income limitations.

Finishing Up the Legal Procedures

If everything checks out with the property, you can give your lawyer the go-ahead to finalize the legal procedures like title searches, contract preparation, and signing.

Finalizing the Payment

When it’s time to make the final payment and transfer the property into your name, having a Spanish bank account can be beneficial. This process can be undertaken concurrently with obtaining your NIE. With a NIE in hand, setting up a bank account is straightforward and can also be managed with your lawyer’s help.

Register Your Property: The Final Step

Your lawyer can also help prepare the Escritura de Compraventa (public title deed), a critical document to be signed by both parties, legal representation, and a Spanish notary. After this, the notary sends details of the Escritura de Compraventa to the local land registry to verify the new owner’s identity.

Additional Costs to Keep in Mind

Apart from your deposit, you should account for an additional 10–13% of the purchase price to cover potential fees and taxes. This includes transaction tax, VAT and IVA, notary fees, lawyer fees, and loan fees.

Moreover, owning property in Spain involves annual taxes. It’s advisable to engage a reliable tax advisor, or gestoría, to manage these yearly tax payments.

Navigating a property purchase in a foreign country can indeed be intimidating. We hope that the tips and insights shared in this guide prove helpful on your journey. And remember, once you’re settled into your new Mallorcan home, our guides can help you explore and enjoy the best the island has to offer.