Buying property in Mallorca follows a clear process: define your search profile, secure your budget, inspect properties, negotiate, reserve, carry out legal and technical checks, sign a private purchase contract or arras contract, purchase before a notary, pay taxes, register in the land registry and take over the property.

1. Define your search profile

At the beginning is not a viewing appointment, but a precise search profile. International buyers should clarify whether the property is intended as a holiday home, main residence, capital investment or long-term retirement home. This determines location, usability, financing structure, tax consequences and possible rental issues.

The search profile includes minimum size, outdoor area, sea view, pool, parking space, accessibility, condition, energy efficiency, noise situation, community fees and desired handover date. For apartments, it is also important whether the community is well-maintained and whether major renovations are planned. For fincas and houses, it should be checked early on whether building parts, pool, extensions and access roads are legally cleanly documented.

2. Calculate your budget realistically

The purchase price is only part of the total budget. Buyers should also factor in acquisition costs, taxes, notary, land registry, legal review, translations, financing costs, insurance, renovation, furniture, ongoing community fees and reserves.

For resale properties, the transfer tax ITP generally applies in the Balearic Islands. The ATIB specifies a progressive general tariff structure for paid property transactions: 8% up to €400,000, 9% for the next bracket up to €600,000, 10% up to €1,000,000, 12% up to €2,000,000 and 13% above. The tax is calculated using an average rate, not simply applied as a flat rate to the entire purchase price. Reduced rates only apply under strict conditions, e.g., for certain main residence cases.

For new builds, IVA usually applies instead of ITP. The Spanish tax authority generally states 10% IVA for the purchase of new homes, and 4% for certain publicly subsidised homes. Additionally, the stamp duty AJD may apply in the Balearic Islands; the ATIB generally states 1.5% for notarial documents in new purchases, with possible special cases.

International buyers should also organise their NIE early on. This Spanish identification number is intended for foreigners who have economic, professional or other ties to Spain and appears in the relevant documents.

3. Make a pre-selection

A good pre-selection saves time and prevents emotional wrong decisions. Before travelling to Mallorca, buyers should critically review property exposés: Is the living space plausible? Are there current photos? Do location, orientation, year of construction, community fees and cadastral data match? Is there a clear distinction between built area, usable area, plot and terraces?

Serious pre-selection also means: not just looking for the most beautiful property, but for the one that is legally and economically most sound. Especially for rural properties, older houses and properties with rental potential, a list of documents should be requested early on.

4. Prepare and carry out the viewing

During the viewing, buyers should not only pay attention to the view, fittings and atmosphere. What matters is the substance and usability: damp, roof, windows, building services, air conditioning, heating, water, electricity, sewage, internet, access, parking, neighbourhood, sun exposure and noise.

For apartments, this includes communal areas, lift, facade, underground garage, pool, reserves and house rules. For houses and fincas, buyers should clarify whether all visible building parts are approved, registered and consistent with the cadastre and land registry. In Mallorca, the Cédula de habitabilidad is also important: the Consell de Mallorca describes it as a document that recognises the suitability of a property for living or use and is relevant in sales and rental cases.

5. Negotiate the price with facts

A negotiation should not be based solely on market feeling. Good arguments are comparable sale prices, renovation needs, open documents, encumbrances in the land registry, missing certificates, community debts, technical defects, financing security and a clean timeline.

International buyers often have an advantage if they have clarified financing commitment, equity proof, NIE appointment and purchase structure in advance. A seller is more likely to accept a lower but reliably executable offer than a higher offer with many uncertainties.

6. Reservation only with clear conditions

After agreeing on the price, a reservation is often arranged. It is intended to take the property off the market temporarily until the lawyer, tax advisor or gestor has completed the initial checks. Buyers should not treat a reservation as a mere formality.

Important are purchase price, reservation amount, deadline, refund rules, seller data, buyer data, property identification, document obligations and the condition that the legal review is satisfactory. The reservation amount should be paid in a traceable manner, never in cash without proper documentation.

7. Due diligence: legal, tax and technical review

Due diligence is the most important safety filter before the binding signature. It should at least check the land registry, cadastre, ownership status, encumbrances, mortgages, easements, rights of use or usufruct, community debts, IBI payments, energy certificate, Cédula de habitabilidad, rental or usage agreements and building law situation.

The Nota Simple from the land registry is a central document. The Registradores offer online information about the property and provide register information. The notary later also checks central points, including identity and legitimation of the parties, seller's title, encumbrances, cadastral reference, community fees, IBI and energy certificate. However, this notarial review does not replace the buyer's prior review, especially not for structural and tax special issues.

The cadastre is also important because the reference, location, area and the valor de referencia can play a role in tax matters. For international buyers, anti-money laundering prevention is also part of the transaction. Real estate agents, notaries and other obliged parties must fulfil due diligence obligations under Spanish anti-money laundering legislation. Therefore, the origin of funds, beneficial owners, identity documents and payment channels are checked.

8. Private purchase contract or arras contract

After successful due diligence, a private purchase contract or arras contract is often signed. This contract is legally relevant and should not be understood as a mere preliminary contract. It regulates the property, purchase price, payment plan, deadlines, freedom from encumbrances, tax and cost distribution, handover condition, inventory, contractual penalties and conditions up to the notary appointment.

Particularly important is the type of arras. Article 1454 of the Spanish Código Civil stipulates that in the case of arras or a deposit in the purchase contract, the buyer can withdraw forfeiting the deposit and the seller, upon withdrawal, must repay double the amount. This effect should be clearly and expressly regulated.

9. Prepare the notary appointment

The notary appointment is the formal conclusion of the purchase. Buyers should check the draft of the Escritura, current Nota Simple, payment instructions, bank checks or transfer receipts, NIE, identity documents, powers of attorney, tax data, financing documents and inventory list in advance. If buyers do not appear in person, the power of attorney must be correctly prepared, possibly apostilled and translated.

The public deed offers special legal certainty. For mortgages, the notarial pre-review of the loan conditions must also be planned.

10. Sign the purchase at the notary

At the notary, seller and buyer sign the Escritura de Compraventa. The buyer pays the remaining purchase price, the seller transfers possession and keys, and existing encumbrances are cancelled, settled or expressly assumed depending on the agreement. The deed should clearly document the payment method, encumbrance status, cadastral reference, energy certificate, community fees, IBI and handover.

Important for buyers: The notarial certification alone is not the last step. Afterwards, tax payment, submission to the land registry and practical handover formalities follow.

11. Pay taxes and register in the land registry

After the notary appointment, the applicable taxes must be processed on time. For resale properties, the ATIB specifies a payment period of one month from the date of the contract or deed for Model 600. For new builds, attention must also be paid to the AJD processing and the specific tax structure.

Only registration in the Registro de la Propiedad secures the new ownership position against third parties particularly strongly. Buyers should check that the deed has been submitted, taxes paid, previous encumbrances cancelled and the final registration completed.

12. Handover and follow-up work

The handover should be documented. This includes keys, meter readings, alarm codes, remote controls, access cards, guarantees, operating instructions, insurance documents, community contacts, maintenance contracts and inventory. Electricity, water, internet, insurance, municipal taxes and community fees must be transferred to the buyer.

After the purchase, international buyers should also check their tax situation: resident or non-resident, ongoing property taxes, possible rental, declaration obligations and later sale consequences. Anyone wishing to rent out the property for tourist purposes must check this separately; ownership alone does not establish an automatic rental permit.

Short checklist for international buyers

Clarify search profile and use: holiday home, main residence, investment or rental.
Calculate total budget including ITP or IVA, AJD, notary, land registry, advice and reserve.
Prepare NIE, bank, financing commitment and proof of origin of funds.
Check property, seller, land registry and basic documents before reservation.
Sign reservation only with clear refund rule and due diligence reservation.
Have all legal, technical, tax and building law points checked before arras contract.
Only arrange notary appointment when deed draft, payment and cancellation of possible encumbrances are clarified.
After notary, pay taxes on time and check land registry entry.
Protocol handover and switch utilities, insurance, community and tax obligations.

Buying Property in Mallorca: Step-by-Step Process