Purchase Ancillary Costs When Buying Property in Mallorca

When buying property in Mallorca, the budget consists not only of the purchase price. Additional one-time purchase ancillary costs arise: taxes, notary, land registry, legal review, and, if financing, further bank and mortgage costs. As a rough guide, buyers of resale properties should generally plan for an additional 10 to 15%; for new builds, often around 12 to 14%, depending on the purchase price, AJD rate, financing, and advisory effort.

Resale Property or New Build: The Most Important Difference

The largest cost block depends on whether you are buying a used property or a new build from a developer.

For a resale property, the Balearic ITP is usually by far the largest ancillary cost item. The current general scale is 8% to 13%: up to €400,000 8%, from €400,000.01 to €600,000 9%, from €600,000.01 to €1,000,000 10%, from €1,000,000.01 to €2,000,000 12%, and above that 13%. Reduced rates or bonuses may apply for a primary residence and certain buyer groups; these are subject to strict conditions and should be reviewed on a case-by-case basis with a tax advisor.

For a quick estimate for resale properties, use the ITP and property transfer tax page with calculator. It does not replace tax advice but helps to realistically assess the largest ancillary cost item early on.

Notary and Land Registry

The notarial deed of purchase is in practice the central step to legally document the transfer of ownership and subsequently register it in the land registry. Notary costs are based on state tariffs and depend, among other things, on the purchase price, scope of the deed, and copies.

After notarization, the change of ownership is recorded in the Registro de la Propiedad. Land registry costs also follow an official tariff and depend on the value and type of registration. For buyers, registration is particularly important because it secures the owner's position against third parties.

Legal Review

A lawyer is not legally required in every case when buying property, but for international buyers in Mallorca, it is practically highly recommended. The review typically includes title deeds, encumbrances, building permits, usage status, cadastral and land registry data, community debts, tax risks, purchase contract, arras contract, and powers of attorney.

Lawyer fees are freely negotiable. Fixed fees or percentage models are common, often plus Spanish IVA. A written engagement with a clear description of services is important.

Bank and Financing Costs

When purchasing with a Spanish mortgage, purchase costs and mortgage costs must be clearly separated. The purchase costs, i.e., particularly ITP or IVA/AJD of the acquisition, notary and land registry costs of the purchase deed, and legal advice, are generally borne by the buyer.

For the mortgage, under the Spanish mortgage credit regulation: The valuation of the property, i.e., the Tasación, is generally borne by the borrower. The bank, on the other hand, covers the Gestoría, the notary costs of the mortgage deed, the registration of the mortgage in the land registry, and the corresponding mortgage taxes under the current regulation. An arrangement fee may apply if agreed in the credit offer.

Other One-Time Costs

Depending on the buyer profile, additional expenses may arise: NIE application, certified translations, interpreters, powers of attorney, technical reports, architect review, surveying, energy certificate review, or Gestoría services for tax and registry processing.

Practical Budget Rule

For a resale property in Mallorca, the ITP is the starting point for budget planning. Add notary, land registry, lawyer, and possibly financing and bank costs. For new builds, IVA replaces ITP; additionally, AJD applies. If financing, the Tasación, possible arrangement fees, and ongoing financing conditions should be considered separately from the pure purchase ancillary costs.