How to buy property in Mallorca - The Ultimate Guide

The Ultimate Guide to Buying a Property in Mallorca

Dreaming of owning a slice of paradise in Mallorca? Whether it's a rustic finca overlooking olive groves or a chic apartment in Palma's old town, purchasing property in Mallorca can be straightforward if you know the process. While it's essential to consult a notary or lawyer for expert advice, we've created a step-by-step guide to help you navigate the property buying journey.

Viewings and Making an Offer

Once you’ve selected properties of interest, we’ll arrange viewings. Should you decide on a property, it's time to make an offer. Don't forget to consider the 8-11.5% additional costs on top of the property price, which covers local taxation, notary fees, and more.

What are the additional costs and how do they break down

• Notary fees 

• Lawyer fees 

• Taxes

• Actos Jurídicos Documentados (stamp duty)

• ITP

 Take a look at the latest properties we have listed for sale on our website 

Financing Your Property

If you're seeking a mortgage in Mallorca, non-residents can generally borrow 60-70% of the purchase price or valuation. For residents, it's up to 80%. Fortunately, changes in EU legislation have made the mortgage process more transparent, aligning it more closely with systems like the UK's.

Need a mortgage broker? We partner with an English-speaking mortgage broker, Nicky Buchanan. With over 15 years of finance brokerage experience in the UK, Nicky established her brokerage in Mallorca in 2009. If you’re a first-time buyer in Spain, her wealth of knowledge will ensure a seamless process. Contact us for introductions.

Currency Exchange

Looking for competitive exchange rates? Some exchange companies in Mallorca can beat Bank exchange rates as well as offering a range of services, from international money transfers to exchange rate fixing. 

We can recommend two currency exchange services in Mallorca

 Moneycorp offers:

• Commission-free transactions.

• Quick transfers.

• Competitive exchange rates.

• Dedicated manager for expert advice.

• A free account without any obligations.

Currencies Direct:

• No Transfer fees

• Personal currency expert

• Tailored transfer services

• Competitive exchange rates.

Speak with the team at Lifestyle Properties Mallorca for more information.

Lawyers and Searches

Though it's not obligatory, hiring a lawyer when purchasing property in Mallorca is highly recommended. Lifestyle Properties Mallorca can offer a full conveyancing service from the point of drafting the option contract, to searches and completion. There is also an option to hire a lawyer to check this has all been completed correctly. 

Your conveyancing service will:

• Verify the property's ownership.

• Ensure it’s free from debts, lien or charge.

• Confirm correct building permissions.

• Provide an estimate of the taxes on the purchase.

• Acquire and confirm the stated price on the deeds.

 For more information on Lifestyle Properties Conveyancing services speak to our team on +34 871 570 775

Signing the Contract

Once your lawyer gives the green light, you'll sign the option contract, releasing 10% of the purchase price. This contract solidifies your intention to buy, officially reserving the property.

Completion

All residential property sales in Mallorca are formally completed by a Notary. This process involves setting a Notary date for the legal transaction, attended by the purchaser, seller, and the Notary. A third person can be given power of attorney (poder preventivo). This is a document that names a third person chosen to represent you in your absence of signing for completion. Many people choose to complete the purchase of property in this way, if they do not live in Mallorca and can not be available on the date of signing. 

The Notary and Public Record

This step ensures the sale/purchase title deed has been signed and understood by both parties in the presence of the Notary.

The Deeds

You'll receive a copy of the title deeds. Meanwhile, your lawyer will present the original to the land registry, completing the registration.

Your dream home in Mallorca is within reach.

With the right knowledge and support with Lifestyle Properties Mallorca, you’ll soon be enjoying Mediterranean sunsets from your own balcony. Whether you're at the start of your journey or you are looking to sell your property here in Mallorca, we're here to guide you every step of the way. 

Disclaimer 

This is a general guide and not specific to everyone's circumstances. We recommend that you speak directly with a professional based around your personal circumstances when looking to purchase a property as information in this guide may have been updated. 

This information is accurate as of July 2024