Buying Property in Mallorca

How do you buy a Property in Mallorca, see more about Taxes, Fees, Mortgages and making a Will

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Buying Property in Mallorca

Having bought several properties on the Island of Mallorca (Majorca), our aim is to guide you through the process with the valuable experience and knowledge we have gained along the way. The process of buying or selling is not as difficult as you would think however there are some very important things you have to understand.

Lawyer - Abogado

There are several excellent English speaking Lawyers (Abogados) who can take care of all of the legal aspects of the property purchase or sale, looking after your interests during the process. The Abogado will perform a search to ensure that there are no outstanding debts on the property. Also they will check that all permissions have been met and the building is completely legal. You can ask in advance for a quotation of fees.

Property Purchase

Calvia Adjuntament (local council)

Property For Sale Mallorca | Property For Sale Majorca, Cala Bona, Son Servera, Cala D'Or

You will have to reach agreement on not only the overall purchase price but also the 'official' price which is sometimes lower than the purchase price. The official price will be used for all documentation. In Spain it is common for this price to be lower than the price paid. A sales tax is paid at the time of purchase and annual taxes have to be paid to the Ajuntament (local council) based on the offical price.

If you are buying an apartment within a building you should check with the Administrators that the annual Community fees are up to date and also that the local taxes (IBI - Impuesto sobre Bienes Inmuebles) have been paid to the Ajuntament.

Option Contract for Property Purchase

After all checks have been completed on the property for sale, an option contract (Opción de compra) will be drawn up by the Abogado once the price has been agreed.  Normally a deposit of around 10-25 percent of the purchase price is paid at this time and is held by the Abogado or Estate Agent. It is normal within the option contract that if the sale does not take place as planned within a stated period, usually about 6 weeks, the deposit will be forfeited to the seller.

The Notary

Property For Sale Mallorca | Property For Sale Majorca, Buy apartment MajorcaThe Abogado will arrange a date for the Notary (Notario) where you will officially sign the Escitura (Title Deeds) (Escitura Publica de Compra Venta) which notarise the conditions of the purchase. The seller will normally have to be present at this meeting where the remainder of the purchase price will be exchanged for the keys.

Mortgage - Hipoteca - Fees

If you arrange for a Spanish mortgage (Hipoteca) a representative of the bank will also have to be present at the Notary. They will normally bring a bank cheque payable to the seller. There will also be another Escitura for the loan.

Fees for the arrangement of the mortgage and cheque will have to be paid. This can vary from bank to bank. Please check this before going ahead with the mortgage.

If it is not possible for the seller to be present, a proxy can be arranged with official documentation arranged by the Abogado otherwise it will not be accepted by the Notary on the day of purchase.

Several weeks (sometimes months) later you will receive the official Escitura.

It is best to keep this official document in a safe place.

Property Transfer, Payment of Local Taxes

Following the sale, the Ajuntament (council) will transfer the property records into your name and you will pay the taxes on the property and bins at the end of each year (normally from October until the end of November). Sometimes it can take around 2 years for the Adjuntament to change the details of the property. During this transitional period you will have to pay the taxes using your Escitura as proof of purchase


In addition to the purchase price of the property for sale, you should allow approx 15% (of the official price) to cover taxes in relation to the purchase, transfer tax, Notary and Abogado fees etc. There is also a tax for Capital Gains (Plus valia) which is a tax on the increase of value since the last sale. This is due to be paid by the seller but often the buyer agrees to pay this or it can be shared.

When buying a new property from a builder or developer make sure that they are reputable. Instead of transfer tax you will be liable to pay IVA on the purchase price and Stamp Duty. Normally a non-refundable deposit is payable and sometimes installments are required up to completion.

Spanish Will

It is important to have a Spanish Will drawn up to take care of your interests in the event of death. This can be done at the same time as the purchase and signed at the Notary or alternatively can be done any time afterwards. Your lawyer can take care of this and tailor the Will to suit your needs within Spanish Law.

Together with our associates we can offer a selection of property for sale in Majorca.

Apartment for Sale Living in Mallorca

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If you are thinking of moving to Mallorca check out our guide.


Renovating your new home? Check out some DIY and home improvement shops on the Island.

If you have any Questions contact us

Buying Property in Mallorca