Buying a house in Mallorca: checks, costs and the steps to completion
If you’re buying a house or flat in Mallorca, the most important checks happen before you pay a reservation fee or sign an arras contract. Ask an independent property lawyer to confirm who owns the property, what can legally be sold and whether the buildings you’ve seen match the paperwork. Get a written estimate of the full cost before committing.
Before you make an offer
Decide what the property needs to do for you. If you want to extend a finca, keep a pool or let the property to holidaymakers, tell your lawyer before you negotiate. Ask the town hall what planning rules apply to the specific property and have a surveyor or architect look at its condition. A holiday rental licence, where relevant, needs its own checks.
Ask what identification you will need, including a foreigner’s identification number (NIE) if applicable. If you need a mortgage, speak to the lender early and ask how long valuation and approval will take. Arrange independent translation if you need it.
What to check before paying a deposit
A nota simple from the Land Registry identifies the registered owners, the property description and recorded charges such as mortgages. Ask your lawyer to compare the registry, cadastre and town hall records with what’s physically there. This is especially useful if a rural property has extensions, outbuildings, a pool or an unusual water supply.
Ask for the relevant occupancy or habitability paperwork, energy certificate and recent property tax information. For a flat or development, ask about community debts, rules and major works planned or already approved. Ask who will clear any charges and how that will be documented at completion.
What happens when you sign an arras contract?
A reservation agreement and an arras contract can create obligations. Ask who holds the money, when it is refundable, what happens if either side withdraws and whether there is a finance condition. Some arras contracts let the buyer walk away by losing the deposit and require the seller to return double if the seller withdraws. The wording and type of contract matter, so have your own lawyer review it before you sign.
Taxes, completion and registration
A resale generally attracts Balearic transfer tax (ITP). A first sale by a developer generally attracts VAT (IVA) and may also attract stamp duty (AJD). Ask for a breakdown that includes the tax base, any relief you actually qualify for, and legal, notary, registry, valuation and finance costs. Check the current rates with the Balearic tax agency before budgeting.
Completion is normally formalised by signing the public deed (escritura pública) before a notary. Confirm in advance how funds will be transferred and what you’ll receive on the day. Afterwards, check who will file the applicable taxes and register your ownership. Keep copies of the deed and tax receipts, and arrange utilities and community payments.
Useful vocabulary in English, Spanish and Catalan
| English | Spanish | Catalan |
|---|---|---|
| Land Registry | Registro de la Propiedad | Registre de la Propietat |
| Land Registry extract | nota simple | nota simple |
| Deposit agreement | contrato de arras | contracte d’arres |
| Public deed of sale | escritura pública de compraventa | escriptura pública de compravenda |
| Certificate of habitability | cédula de habitabilidad | cèdula d’habitabilitat |
| Is the pool legally authorised? | ¿La piscina está autorizada? | La piscina està autoritzada? |
Frequently asked questions
Do I need a NIE to buy property in Mallorca?
Foreign buyers should ask their lawyer or notary to confirm the identification and tax details required for their transaction and arrange a NIE early where applicable.
What is the difference between ITP and IVA?
ITP is generally payable on a resale. IVA generally applies to a first sale by a developer, with AJD also potentially payable. Have the total calculated for the specific purchase before committing.
Does a nota simple prove an extension is legal?
It describes what the Land Registry records. Ask your lawyer to check planning and occupancy records as well and have a professional compare the paperwork with the property on site.
Official information and useful links
- Spanish government guide to property purchases
- Balearic Tax Agency transfer tax rates
- Spanish Tax Agency on IVA and ITP
- Listen to Mallorca Solutions on NIEs and residency paperwork
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