Mallorca has been one of the most popular locations for international property buyers for decades. Whether as a retirement home, holiday property or investment – buying real estate on the island has its own rules.
The buying process step by step
- Get your NIE number: Without a NIE number, no property purchase is possible
- Find a property: Through agents, portals or private sellers. Also check our classifieds
- Hire a lawyer: An independent lawyer checks the legal status (land registry, building permits, debts)
- Reservation contract: Secures the property with a deposit (usually 3,000-10,000 euros)
- Pre-contract (Arras): Binding contract with 10% deposit. If the buyer withdraws, the deposit is lost
- Notary appointment (Escritura): The purchase is notarised and registered in the land registry
Additional costs
Expect 10-13% on top of the purchase price:
- Transfer tax (ITP): 8-13% (tiered on the Balearics)
- Notary fees: approx. 0.5-1%
- Land registry: approx. 0.5%
- Lawyer fees: approx. 1-1.5% (plus VAT)
- Agent fees: In Spain, the seller usually pays
Running costs
- IBI (property tax): 0.4-1.1% of cadastral value annually
- Waste collection: 100-300 euros/year
- Community fees: 50-500 euros/month for apartments
- Insurance: from 200-500 euros/year
Common pitfalls
- Illegal constructions: Many older fincas have extensions without permits
- Coastal protection law: Strict building regulations near the coast
- Joint ownership: Properties with many owners can cause issues
- Cash payments: Never pay part of the price “off the books”
Find estate agents in our business directory.
Back to moving to Mallorca guide.
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