Buying a home in Mallorca follows a clear sequence, but it differs from Germany, Switzerland or France in several ways: the reservation and deposit contract, the role of the notary and the taxes due on completion.
This guide explains the steps and the costs to budget for, so you can plan your purchase before the first viewing.
Every buyer needs an NIE (número de identidad de extranjero), the Spanish tax identification number for foreigners. You can apply at a Spanish consulate in your home country or in Spain, and your lawyer can often take care of it with a power of attorney.
A Spanish bank account makes it easy to pay taxes, notary fees and utilities. Allow a few weeks for both before you expect to sign.
Once you have found the right home, a reservation agreement with a small deposit usually takes the property off the market for a short period.
Your independent lawyer then checks the property: ownership and charges in the Land Registry, building licences and the certificate of occupancy, outstanding property tax or community fees, and whether the built area matches the registered and cadastral data. For country properties, the plot classification and any unlicensed buildings deserve particular attention.
After the checks, buyer and seller usually sign a private deposit contract, and the buyer pays around 10% of the price. Under the most common form, the buyer loses the deposit if they withdraw, and the seller repays double the deposit if they do.
The contract fixes the price, the completion date and what is included in the sale, such as furniture.
The sale is completed by signing the public deed before a Spanish notary, where the balance is paid. The notary confirms identities and the legal formalities, but does not replace your own lawyer’s checks. If you cannot attend, you can sign through a power of attorney.
After completion, the transfer tax is paid and the deed is registered in your name at the Land Registry.
Budget for purchase costs on top of the price. For a resale property, these are the main items:
For a new build bought from a developer, VAT of 10% and stamp duty, generally 1.5%, apply instead of transfer tax.
For a resale villa at €2,500,000, the transfer tax would be about €275,000, roughly 11% of the price. Including notary, registry and lawyer, plan for around 12–13% on top of the price. Your lawyer will confirm the exact figures for your purchase.
Owners pay the annual property tax (IBI), refuse charges and, in a residential community, monthly fees. Non-residents also file an annual non-resident income tax return for a Spanish home, and depending on overall assets, wealth tax may apply.
If you plan to rent the property to holiday guests, check whether a valid rental licence exists: new licences are not available for many properties in Mallorca. A tax adviser familiar with both Spain and your home country can help you plan.
I help you narrow down areas and properties, organise viewings and coordinate the process with your chosen lawyer, architect and other advisers through to completion. Through my network, I can introduce you to independent lawyers and technical professionals.
This guide is for general information and reflects the situation in 2026. It is not legal or tax advice, and figures can change. Please confirm the details of your purchase with an independent lawyer or tax adviser.
