Legal process when buying a property in Mallorca
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Buying property in Mallorca: Opportunities and legal risks
Mallorca is one of the most popular real estate locations in the world. Its stunning locations, excellent infrastructure, easy accessibility, and high security make the island an attractive destination for property buyers. Added to this are attractive returns from holiday rentals and continuous appreciation.
However, there are also legal challenges, such as opaque property registers, the lack of thorough legal review by notaries, and problematic building zones. This is where we come in: With our many years of experience in real estate law and project management in Mallorca, we ensure that your purchase proceeds smoothly and legally.
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3Buying property in Spain –
Important steps before notarial certification
In Spain, an option agreement is often concluded prior to the notarial deed of a property purchase. If the buyer exercises their option in writing, the preparation for the notarial deed usually begins.
The date and location of the notarization must be communicated in writing – ideally by registered mail with return receipt (certificado con acuse de recibo) or by fax. The most secure method is a notarial requerimiento, in which the notary confirms that the option has been exercised.
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Preparation of the notarial certification
Once the date for the notarial deed has been set, the legal steps must be initiated. This includes ensuring a smooth transfer of ownership and the simultaneous handover of the purchase price, which in Spain are always directly linked.
It's advisable to engage a local real estate attorney to draft the purchase agreement. They will also handle the payment of any required taxes and ensure the correct registration in the land register. The notary, on the other hand, will only verify the identity of the parties involved based on their identification documents.
Notarial duties and tax requirements
The notary ensures that all parties involved have a Spanish tax number (NIF) and requests proof of payment, for example in the form of a check from a Spanish bank.
These documents are mandatory in order to have the notarial purchase deed registered in the land register.
Examination of the land register before notarization
The appointed lawyer should examine the land register before the deed is signed to verify the ownership details and any possible encumbrances such as mortgages or usufructs. The lack of necessary building permits, such as for a pool, can also cause unexpected problems.
Tax obligations after notarization
After receiving the first deed (Primera Copia), the capital gains tax must be paid to the municipality and the property transfer tax (8-11 %) must be paid to the regional tax office.
For sales by non-residents, a 3% portion of the purchase price must also be retained as security for the seller's income tax. Once these tax obligations have been fulfilled, the deed is submitted to the land registry for registration.
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Legal certainty when buying property in Mallorca
Buying a property in Mallorca can be fraught with various legal challenges, which are often difficult to understand, especially for foreign buyers. As experienced real estate law experts, we offer you comprehensive advice and support to ensure your investment in Mallorca is safe and legally sound.
Our services at a glance:
- Land registry audit and security
- Advice and preparation of option contracts
- Notarial certification and contract preparation
- Legal representation in cases of illegal construction
- Tax advice and processing
Contact us for comprehensive legal advice – we will professionally accompany you through every step of your property purchase.
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We offer you professional and comprehensive initial advice in the area of real estate law. Take your chance and avoid mistakes.
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