Buying property in Majorca – Tips for Buyers

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Exclusive villa with sea views in Puerto Andratx. Tips for property buyers.

Buying a property in Spain is very different to buying a property anywhere else in Europe. We have compiled the most important points to ensure the legal purchase of a property in Majorca in our guideline “Tips for Property Buyers”.

Please note that it is not legal advice, but purely for information purposes. Depending on the individual case, it is recommended that you consult a solicitor in Majorca before buying. Porta Mallorquina Real Estate S.L.U. has been working with reputable solicitors for many years and will be happy to give you suitable recommendations.

We at Porta Mallorquina Real Estate will assist you, as a buyer, with any questions you may have.

With the assis-tance of the authorities and solicitors we can, for instance, clarify the following points for our clients:

  • Is construction possible and permitted on the plot?
  • Is the building legalised or subject to any right of continuance?
  • Is the seller recorded in the Land Register? Are there any encumbrances on the property?
  • Are there any restricted rights in rem on the property (right of use, security interest in land)?
  • Application for an N.I.E., an ID number that is mandatory for non-resident buyers and sellers.
  • What fundamental features of the property are recorded in the Land Registry (catastro)?

 

Once all outstanding questions have been answered, there is nothing to stop you buying your dream property in Majorca. In Spain – as in Germany – taxes and charges fall due during and after the purchase of a property.

Here is an overview of the main charges:

Purchase from a private individual

  • Property transfer tax (ITP)
  • Municipal appreciation tax (Plusvalia)
  • Property tax (I.B.I.)
  • Wealth tax
  • Income tax

 

In Spain it is not uncommon for a specially-founded company to be set up as the owner of a property. If the seller is a legal person, the buyer is liable for different taxes:

Purchase from a company or self-employed person

  • Value added tax
  • Stamp duty
  • Purchase of company shares
  • Property transfer tax (ITP)

 

Apart from taxes, there are also the incidental costs of the purchase:

  • Notary costs (approx. 0.1 – 0.2 % of the purchase price)
  • Costs for registering the Deed of Sale in the Land Register (approx. 0.1 – 0.2 % of the pur-chase price)
  • Notary and Land Register costs incurred for the creation and registration of a mortgage, where applicable
  • Estate agent costs, if borne by the buyer
  • Costs for legal advice
  • Solicitor’s fees
  • Tax advisor fees
  • Legalisation costs

 

The Porta Mallorquina Real Estate Team is at your disposal if you have any further questions about the purchase of property in Majorca. You can call us seven days a week on +34 971 698 242 or send an e-mail to Email to Porta Mallorquina.
More information about Majorca and about properties in Majorca is available in our blog at Blog Porta Mallorquina

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Porta Mallorquina Shop in Puerto Andratx.

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