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Mallorca Real Estate: Expert Tips for Property Buyers

happy couple buys a house

 

If you're interested in buying a property in Mallorca quickly and profitably, then this article will provide you with valuable tips and secrets gathered by the experts at YES! Mallorca Real Estate Agency. We'll cover the pitfalls to watch out for when buying a property in Mallorca, how to complete the process as quickly and profitably as possible, the taxes and fees you'll need to pay, and whether it's possible to do the deal remotely without traveling to Spain.

Buying a property in Mallorca requires extensive knowledge of Spanish law and a significant amount of time. It's not something you can do in just one day. To find the right Mallorca property for sale, you need a comprehensive approach that includes choosing a reputable Mallorca real estate agent, setting your priorities, and developing a personal view of the property you want to buy. With our wealth of experience in this area, we've put together a guide that explains the key features of buying a Mallorca property. 

Basic requirements when buying property in Spain (including Mallorca)

To buy a property in Mallorca, the first step is not to choose the property, but to find out what is required to make the purchase. The primary prerequisite is to collect and prepare the necessary documents. One of these documents is the NIE, which is the taxpayer identification number in Spain. It is essential for any activity in Spain, including buying or selling property.

NIE stands for Numero de Identificacion de Extranjeros, which translates to Foreigner Identification Number. This document is crucial in Spain as it serves as a taxpayer identification number and is required for various activities such as opening a bank account, buying or selling property, obtaining residency, and even applying for a discount card at a grocery store.

To obtain an NIE, you need to make an appointment with a notary, provide a passport that allows you to stay in Spain, and pay the necessary fees, including notary fees which cost around 150 to 200 euros per person. The processing time can take anywhere from 3 to 60 days. Alternatively, you can also apply for an NIE through the Spanish Consulate in your country of residence.

Opening a bank account in Spain also requires some time and effort, as it can take one week to one month to complete. You don't need to be physically present on the island for the bank's approval. Once your account has been opened, you must visit the branch to sign the relevant agreements. It's important to inform the tax office in your home country of your Spanish bank account to avoid any issues when transferring funds to Spain.

If you're planning to buy a property in Mallorca with a mortgage, you'll also need life and property insurance, which is a requirement of the bank providing the mortgage. You can choose to get insurance from the bank or an insurance company of your choice. Here you can find thecomplete guide for home insurance in Mallorca.

Overall, the paperwork involved in buying a property in Mallorca is an additional cost that you need to consider. 

Checklist for buying a house in Mallorca

A comprehensive guide to buying a property in Mallorca includes not only paperwork but also an understanding of the entire purchasing process. To avoid confusion and ensure that no crucial steps are overlooked, we recommend using a checklist titled "How to buy a property in Mallorca." This tool is a step-by-step guide designed to save you time and money while making the purchasing process a pleasant and hassle-free experience. 

1. The paperwork

-        Spain's NIE

-        Spanish bank account

-        Insurance (if necessary)

2. Decide on a budget

Investing in a Mallorca resort property, just like in mainland Spain, requires careful consideration of the budget. However, the market for property in Mallorca has its unique characteristics that set it apart from the mainland. That's why the Mallorca Property Report comes in handy. It provides valuable insights to help you determine the maximum budget for your Mallorca property purchase. With this price report, you'll be able to make informed decisions and invest in the right Mallorca property that meets your needs and budget.

3. Buying strategy

You can buy property in Mallorca using your funds or with a mortgage.

4. Prioritise

Once you have decided on a budget for your Mallorca property, it is worth deciding on the property type. To do this, you will have to ask yourself a few questions:

-        What is the purpose of buying property in Mallorca?

-        How do you plan to operate your property in Mallorca?

-        Which of your loved ones will have access to the accommodation?

-        What is the timeframe for the acquisition?

-        What role does the issue of obtaining residency in Spain play for you?

-        How many years do you plan to own property in Mallorca?

-        Will you be renting out property in Mallorca? 

5. Real estate agent in Mallorca 

There is a wide range of estate agents in Mallorca. Study the reviews on the internet. Look at the company's rating and the agency's website. Find out what other channels the real estate agents have in Mallorca: social networks, YouTube channels, etc. Agencies with the resources to maintain additional resources will likely sell a lot. Which means they have a lot of experience. 

6. Make an appointment with a real estate agent in Mallorca.

The quickest way to let an agent know what you are looking for is to make an appointment. This can be a meeting at the property, the sales office or an online meeting.

7. Viewing properties for sale in Mallorca

A professional real estate broker in Mallorca will tell you the property's pros and cons during your visit. But remember - you must not only rely on the estate agent but also remain vigilant. Examine the property carefully. And if you have any questions, be sure to ask your Mallorca real estate agent.

8. Negotiations

Only make an offer if you have decided to buy the property. Give the official offer to your real estate agent in Mallorca. 

9. Option contract

Once the conditions have been agreed, the real estate agency in Mallorca will prepare a preliminary contract. This will set out all the requirements for purchasing the property in Mallorca and the buyer and seller details, amounts and deadlines for payment. 

When signing the preliminary agreement, you must transfer 10% of the property value to the notary's account as a deposit. 

10. A sales transaction. 

After paying a 10% deposit on the property, you will have up to 3 months to buy it. This is enough time to obtain all the documents, arrange a mortgage if necessary and prepare the total amount for the purchase.

The deadline does not have to be three months. It can be shorter if both parties prepare to make the sale sooner.

11. Payment of taxes 

All properties for sale in Spain are listed at tax-free value. So buying a property in Mallorca is worth adding 8%-12%. And take them into account as an additional cost.  

12. Use of property in Mallorca

The last step is to contact the energy company to change the service contract. The last step is to contact the energy company to change the service contract. Once the purchase procedure is completed, you should immediately start enjoying your property in Mallorca.

Financial issues of buying a property

Before purchasing a property in Mallorca, it's crucial to assess your financial capacity. Mallorca is a premier resort destination, and as such, the average cost per square metre is reflective of its elite status. As of May 2023, the average cost per square metre is €3,531 and constantly increasing. This makes it essential to weigh your wishes against your actual financial means. In high-end areas like Son Vida, Puerto d'Andratx, Sol de Mallorca, Costa den Blans, and Nova Santa Ponsa, the cost per square metre can soar up to €15,000. Therefore, it's important to establish a buying strategy from the outset.

There are two main options for buying a property in Mallorca: using your own funds or getting a mortgage.

1.     If you choose to purchase with your own money, it's important to note that you'll need a significant amount of cash available. The minimum price for a property in Mallorca is around 169,000 euros, which could get you a studio apartment in a resort area.

2.     Alternatively, you can opt for a mortgage, which has become a popular choice for property buyers in Mallorca over the last five years. In fact, one in every two property sales in Mallorca has involved a mortgage. 

In the year 2022, the real estate market saw a significant increase in mortgage-involved transactions, which accounted for 63% of the total market. This surge was accompanied by a considerable rise in borrowed capital, which totaled up to 2,662,967 million Euros. Comparatively, the previous year's borrowed capital was recorded at 1,450,000 million Euros.

For more information on this topic, please refer to the post about Mortgages in Mallorca.

Most banks, such as Caixabank, Banco Santander, and Banco Sabadell, offer loans of up to 80% of the value of a property in Mallorca. However, it's important to note that borrowers are expected to have savings equivalent to at least 20% of the property value, and an additional 12% to 15% to cover the associated taxes and fees before submitting the necessary documents for the purchase.


how to get mortgage in Mallorca

Types of mortgages and rates in Mallorca

In Mallorca, as elsewhere in Spain, banks offer individuals three types of mortgage loans. Fixed-rate, Variable rate and Mixed rate.

average loan rate in %

overpayment for 15 years 

overpayment

in 30 years

Fixed

4,3%

16,5%

38%

Variable

4,8%

from 10%

from 28%

Mixed

4,6%

from 13%

from 32%

For more information on this topic, please refer to the blog post about Mortgages in Mallorca.

Cash loan

Buyers of property in Mallorca often use a consumer loan as a source of additional finance. This is useful if you have almost the entire amount to buy a property in Mallorca. Or it can be used as a down payment on a mortgage.

What costs should I expect when buying a property?

If you're considering buying a property in Mallorca, it's essential to be aware of the costs and taxes involved. In accordance with Spanish tax law, the seller is responsible for paying the taxes and charges associated with the sale within 30 days of signing the deed. This amount typically adds up to around 10-15% of the purchase price. Once the taxes have been paid, the transaction can be registered in the registry.

In addition to the seller's taxes, as a buyer, you will also be responsible for paying various fees and taxes. These may include the notary fees, which typically range from 0.1% to 0.5% of the property's value, and the property registry fee, which is usually around 0.2% of the property's value. You may also need to pay stamp duty, which varies depending on the purchase price, as well as legal fees and other administrative costs.

It's important to factor in these additional costs when budgeting for your property purchase in Mallorca to avoid any unexpected expenses. By understanding the expenses involved, you can ensure that your property purchase goes smoothly and without any financial surprise:

 

El impuesto de transmisiones patrimoniales (ITP)

8%

Property transfer tax for secondary properties. 

IAJD - Impuesto sobre actos jurídicos documentados

up to 1.2%

Stamp duty. May vary depending on the municipality. The maximum rate for the Balearic Islands is 1.2% of the property value.

IVA - value-added tax.

10%

To be paid by the buyer of the property in Majorca only when purchasing a new home from a construction company. To be paid when signing the deed of acceptance of the property.

Registration fees

0,2%

The buyer pays the fee. Necessary to register the property at the property registry.

Notary fees

-       

The buyer pays the notary's fees. Each notary sets the price. In practice, the cost of the notary fee ranges from EUR 400 to EUR 1000.

Bank charges

-       

The costs of transferring funds, opening an account and currency exchange should be clarified well in advance with the bank where you plan to transfer funds for the purchase of property in Mallorca. These costs are usually between 0.1% and 0.4% of the payment amount.

Municipal tax

3% 

Income tax provision. If the seller is not taxed in Spain, you, as the buyer, must pay the tax authorities 3 per cent of the purchase price.

Legal costs

1% 

Buying a property is a big responsibility. Buying property in another country always involves higher risks. You can use the services of a lawyer to ensure that the transaction is legally clear. The cost of legal representation is 1% of the transaction amount.

You can also obtain a notarised power of attorney for your lawyer to manage the transaction. The cost of such a power of attorney will be between EUR 200 and EUR 300.

Necessary: The real estate agency fee ranges from 2.5% to 7% of the property's purchase price. The cost is already included in the price of the purchased property. It is payable by the seller when signing the sales contract with the notary.

Tip: When buying property in Mallorca, many of the taxes and payments are refundable for EU citizens. Ask your tax advisor for help. He can tell you which taxes and fees you are entitled to a refund.

Example of payment of taxes and fees for the purchase of a luxury apartment in Mallorca.

The value of the property purchased was €850,000.

Property purchased from Yes! Mallorca Property in February 2022.

The real estate agent's commission is already included in the property's price.

The commission was 5% and was paid by the seller according to the contract of sale of the Mallorca property. 

An example of paying taxes and fees in Mallorca

Mortgage Processing Expenses

When buying a property in Mallorca with a mortgage, it is important to consider the additional costs that may be involved. Following a ruling by the civil court in 2019, most of the costs associated with obtaining a mortgage must be borne by the bank providing the financing. However, there are still some costs that the borrower may be responsible for in 2022, such as mortgage origination fees ranging from 0.5% to 1% of the requested loan amount, bank valuation fees up to 0.1% of the property value, and property insurance costs, which typically average 0.25% of the property value per year. Borrower's life insurance may also be required, with quarterly payments of approximately €90.

Under Spanish law, the bank cannot force property insurance to be included in the loan cost, allowing the client to choose the insurance company with the best terms. However, obtaining insurance from the same bank where the mortgage is taken out can affect the final terms in the contract, with the bank potentially offering a reduced interest rate from 2.6% to 1.59%.

It is important to determine the correct length of the loan and to consider the monthly mortgage payment. To ensure that the payment is comfortable and not burdensome, it is recommended that the mortgage payment does not exceed 20% of your income.How do I choose a property in Mallorca?

The interesting fact is that statistically, 96% of buyers end up buying something other than what they originally planned. And it's not about the value of the property at all. The point is that most people initially want to buy the property they like from the photos. But in the process of choosing, people often realise that their initial choice does not meet their own needs.

To understand which type of Mallorca property is right for you, ask yourself a few essential questions:

What is the purpose of buying property in Mallorca?

1.    Do you plan to live in Majorca permanently?

2.    Are you planning to buy a property in Mallorca in order to rent it out?

3.    Are you shopping for a holiday break?

4.    Do you want to buy a property for resale as an investment?

5.    Multiple targets at the same time?

How do you plan to operate your property in Mallorca?

1.    As a holiday home in Mallorca

2.    Like property by the sea in Mallorca

3.    Like a country house in Majorca for a country holiday

4.    As a luxury property for hosting guests

5.    As a second residence

Which of your loved ones will have access to housing?

Are you planning to use the property you bought in Mallorca on your own? Or do you need more space and sleeping quarters? Do you or your loved ones need a lift and a swimming pool?

What role does the issue of obtaining residency in Spain play for you?

It is possible to obtain a Spanish residence through the simplified option. You can buy a property worth more than 500,000 euros to do this. It would be best if you only use your savings and not a mortgage. You are then entitled to a Gold Investor Residence.

How many years do you plan to own property in Mallorca?

This not only affects the amount of taxes on the subsequent sale. But also, the value of the property being purchased. If you plan to use the property you buy in Mallorca for an extended period (10 - 30 years) and spend on it is worth a little more. So as not to regret later on the money saved.

Will you be renting out property in Mallorca? 

If you are planning to buy a property in Mallorca to rent out, there are a few rules to keep in mind: 

-       Apartments in Mallorca cannot be rented out for short periods.

-       Properties directly by the sea are more highly valued.

- You will bear the depreciation of such property.

-       Income tax on rented properties in Mallorca is 24%

-       Holiday homes in Mallorca and villas with private pools are the best value for money. 

What is the timeframe for the acquisition?

We have shared many times in our articles - how dynamic the Mallorca property market is. It is in constant growth. There is high demand. And as a consequence, there is a shortage of supply. 

So if you're not planning a purchase until at least 6-12 months, you should first study all the helpful material and articles on our website. 

There needs to be more point in inspecting the property in this case. The average time to sell a property in Mallorca is less than 4.5 months. If you like something, in 6 months, it will no longer be available. Or it will cost additionally 10%-15%.

To make an informed decision about purchasing your dream property in Majorca, it's important to ask yourself a few key questions and write down your answers. By sending these answers to your real estate broker in Mallorca, they can recommend the best options based on your specific needs.

Keep in mind that Mallorca can get chilly in the winter, so it's important to check the heating system of any property you're interested in purchasing. Newer homes typically have modern heating systems, while older houses may have alternative options such as air conditioning, which can result in higher energy bills during the winter months. To get a better idea of potential heating costs, ask for the seller's heating bills from the winter period.

With all the necessary funds and considerations in mind, you can now begin your search for the perfect property in Mallorca. 

Starting your search for property in Mallorca

Many types of property are available for purchase in the Mallorca property market. They are all different and suited to different needs. The most common choice for foreign property buyers in Mallorca is:

1.     Apartments

2.     Luxury Villas

3.     Fincas

4.    New residential complexes

Which properties are most bought in Mallorca? 

Groundflof apartments

Penthouses

Apartments

New built apartments

Villas

Fincas

Land plots

% of total transactions

 9%

 4%

 28%

 8%

 24%

 21%

 6%

average transaction receipt

560.000 €

1.00.000 €

340.000 €

550.000 €

1.670.000 €

880.000 €

640.000 €

Data provided by the Spanish National Institute of Statistics (INE) concerning www.ultimahora.es.

Spain's leading real estate portal, idealista.com, estimates the average price per square metre of housing in Mallorca in May 2023 to be €3.531/m2 (+11,3% per annum).

Current buying prices for Mallorca properties in the most sought-after locations:

 

Location

Price per square metre 2022

Deviation from 2021 (+/- %) 

Price per square metre in April 2023

Palma de Mallorca

3.056 €/m2

+ 2,35%

3.600 €/m2

Santa Ponsa

4.494 €/m2

+ 5,4% 

5.610 €/m2

Port d'Andratx

4.825 €/m2

+ 8%

7.501 €/m2

Alcúdia

2.831 €/m2

+ 1%

3.905 €/m2

Felanitx

1.350 €/m2

+ 6,5% 

1.495 €/m2

Llucmajor

2.630 €/m2

+ 8,3%

3.121 €/m2

Marratxi

2.329 €/m2

+ 4,8%

2.982 €/m2

El Toro

3.793 €/m2

+ 1,4%

5.612 €/m2

Palmanova

3.860 €/m2

+ 8,5%

5.018 €/m2

Cala Vinyes

4.596 €/m2

+ 16%

5.676 €/m2

Sol de Mallorca 

5.025 €/m2

-0,3%

5.990 €/m2

Portals Nous - Bendinat

5.739 €/m2

+ 2,7%

8.208 €/m2

Calvià

3.786 €/m2

+ 1%

4.641 €/m2

S'Arenal-Son Verí

2.442 €/m2

+ 6,2%

2.562 €/m2

Son Vida

5.242 €/m2

+ 9,3%

7.255 €/m2

Valldemossa

4.065 €/m2

+1.8%

3.731 €/m2

Manacor

1.695 €/m2

+2.6%

2.034 €/m2

Sa Ràpita

2.761 €/m2

+7.8%

3.702 €/m2

Binissalem

1.928 €/m2

-2.5%  

2.078 €/m2

Congratulations on completing all the critical stages of preparation for buying a property in Mallorca!

You have taken care of all the necessary paperwork, established a purchase strategy and budget, set your personal priorities, and decided on the type of accommodation you desire. Additionally, you have researched the average property prices in Mallorca, the most popular locations, and the types of accommodations available.

Now, you can move forward with the exciting step of visiting the properties that you like. We recommend dividing this process into two steps to make it more manageable and convenient:

1.     Inspect the location

2.     Conduct a property inspection in Mallorca

By following these steps, you will have a clear understanding of the location and the property's condition. You will be able to make an informed decision that meets your needs and preferences.

Best of luck with your property search in Mallorca!  

Checklist: How do I choose a property location in Mallorca?

1.        Make sure you are happy with the location of all the necessary infrastructure: food shops, pharmacies, playgrounds, cafes, bars, restaurants, bus stops, bakeries, etc.

2.        Assess the logistics of the area. Is it convenient to get in and out? Remoteness from the capital Palma and the airport. The regularity of public transport.

3.        There is no sign of unpleasant odours, for example, from agricultural production or sewage.

4.        The rubbish bins are plentiful and clean.

5.        To what extent can noise be expected? How does it manifest itself at different times of the day? From which side does the noise come?

6.        Does the neighbourhood give a pleasant impression? Is there a park, green space, or walking paths?

7.        Is there any construction work planned in the neighbourhood? How will this affect your privacy? Degree of noise? And dust generation?

8.        How close is the sea? How far is the nearest beach?

9.        Are there hotels, nightclubs or clubs in the neighbourhood? The presence of tourists can lead to increased pollution in the area and nighttime noise.

10.      Does it fit with your vision of the area around your home?

These seemingly simple but essential questions will help you decide to buy your dream property in Mallorca.

The second stage of the visit is a property inspection in Mallorca.

For your convenience, we have prepared the main points to look out for during the inspection. 

Checklist: What to look out for when inspecting a property in Mallorca?

We recommend you print out this checklist and take it to your property inspection. That way, you will get everything. And write your comments in the blank space.

1.        The area of the property. Make sure that the space is sufficient for your needs. And that the site is the same as stated in the documents.

2.        Condition of the property. Check the façade, the state of the roof, the staircase, and the letterbox. No mould in the corners, unpleasant odours, or cracks in the ceiling or walls.

3.        Electrics. Check that the lights turn on everywhere. If it is not working somewhere, you may have to change the electrics.

4.        Bathrooms. Check the condition. Does everything work as it should? Does the bathroom have windows and an extractor fan? Mallorca has a lot of humidity. If the bath is not ventilated, there could be mould.

5.        Orientation of the property. Make sure that the most used rooms have a sunny side orientation.

6.        Windows. Make sure the windows are well insulated. Check the seals and make sure there is no moisture on the windows.

7.        Heating. Find out what kind of heating the house uses. How much money does it cost per month? And whether it is possible to connect the city heating.

8.        Kitchen. Check the condition of the appliances. Ensure everything is working and the devices are conveniently located for you. 

Congratulations! You have decided on a property that best suits all your needs. Plus, you have gained experience and understanding of how to buy property in Mallorca. Which means you now have a better understanding of your options and needs.

 Tip: Only visit up to five properties a day. Take breaks between visits. Record your observations on a checklist on paper. 

Real Estate Agent in Mallorca – what to expect?

Finding a reliable estate agent in Mallorca can be a daunting task, given the plethora of options available. To ensure that you choose a competent and trustworthy agent, consider the following suggestions:

1.     Begin by conducting an online search. Check the agency's reviews, social media presence, and ranking on search engines.

2.     Ensure that the agency has a sales office, as many private realtors in Mallorca lack a physical presence.

3.     Examine the company's website for helpful content and the number of properties they offer, as well as whether they conduct market analyses and forecasts.

4.     Determine how long the company has been working in the Mallorca real estate market and the number of successful deals they have closed.

5.     Ask the agency about property maintenance and taxation to gauge their staff's professionalism.

6.     Look for an agency with a private car fleet and a recognisable brand, as these are indicators of a successful agency.

7.     Consider the promptness with which the agency responds to your property enquiries, as good agencies prioritise their clients' needs.

8.     Conduct research on references, such as speaking with people you know who have had positive or negative experiences with real estate in Mallorca, or utilise social media.

At Mallorca Property, we strive to provide our clients with a hassle-free experience by handling all the bureaucratic paperwork, checking documents, and providing legal and other advice. You can trust us to be your reliable broker in the Mallorca real estate market.

After going through this comprehensive guide on buying property in Mallorca, you may wonder whether it's better to go solo or work with a real estate agency in Mallorca. At Yes! Mallorca Property, we highly recommend partnering with a professional estate agent. However, to help you make an informed decision, let's explore the advantages and disadvantages of buying property in Mallorca with a real estate agent. 

Advantages of buying with an estate agent 

1.     Boasts a vast selection of properties for purchase in Mallorca.

2.     Possesses extensive knowledge of the pros and cons of the properties they sell.

3.     Skilled at navigating Mallorca's different locations and can advise you on where to find the best property.

4.     Offers extensive expertise in legal and taxation matters.

5.     Provides direct contact with the salesperson, leading to quicker arrangements for property visits.

6.     Charges no additional fees to the buyer, as commission is already included in the price of the Mallorca property.

7.     Maintains a large network of counterparties, offering assistance with renovations, mortgages, bank accounts, and logistics.

8.     Employs estate agents fluent in many languages, ensuring that you can communicate in your preferred language.

9.     Remains easily accessible, eliminating the need to search for information online, as they possess the necessary knowledge.

10. Takes care of the issue of price negotiation, sparing you the stress of negotiating with the property owner.

11. Assists in selecting a notary public.

12. Prepares all necessary documents required for the transaction.

13. Monitors the fulfillment of all obligations by all parties involved in the transaction.

14. Congratulates you on the successful purchase of the property 

Disadvantages of buying with an estate agent

1.     Selecting an agent - given the abundance of estate agents in Mallorca, it can be challenging to determine the most suitable one for your needs.

2.     Cost: One of the primary disadvantages of working with an estate agent is the cost. Agents typically charge a commission based on a percentage of the property's sale price. This commission can add up to a significant amount of money.

3.     Limited selection: Although estate agents can help you find properties, they may only show you properties that are listed with their agency or with their affiliated agencies. This could limit your options.

4.     Biased advice: Estate agents are working to make a sale, and as a result, they may offer biased advice that is designed to get you to buy a property quickly, even if it's not the best fit for you.

5.     Limited negotiation power: While an estate agent may be able to help you negotiate the price of a property, they may not have as much negotiation power as you would if you were negotiating directly with the seller.

6.     Communication issues: If you don't have a good working relationship with your estate agent, communication issues could arise. You may find it difficult to get timely responses to your questions or concerns, which could slow down the buying process. 

Critical steps in the buying process

We have come to the finish line: The next step is the real estate transaction.

What stages are waiting for you here:

1.    A preliminary contract for purchasing a property in Mallorca is drawn up between the real estate agency and the seller. The real estate agency draws up the contract. If necessary, you can check the agreement with your lawyer.

2.    Transfer 10% of the value of the property to the account of the notary who will execute the sale. The notary is chosen in advance, and the details are recorded in the preliminary reservation contract.

3.    Prepare the package of documents. After paying 10% on the property reserve, the buyer must prepare all the documents for the transaction.

4.    Check the object of the purchase. Request a list of documents from the seller:

Escritura - Document of ownership 

Extract from the land register

Nota Simple - Extract from the Spanish Register of Legal Status of Property

IBI - Property tax payment document

Energy certificate

Basura - an annual tax on waste disposal

A certificate with the balance owed from the bank if you have a mortgage

5.    Notarisation of the sale transaction Here, the property's total value is payable on pre-agreed terms. The buyer can make the payment in several ways:

•        Bank cheques shall be drawn in advance. For the amounts and recipients specified in the contract

•        Transferring money into the notary's account. You should check with the notary's representative to see if this is possible.

•        Online transfer at the time of signing the transaction. You need to notify the sender's bank well before the planned transfer. Your bank will then remove the transfer limit for the duration of the purchase of the property in Mallorca.

Decide on the time of purchase:

When considering buying a property in Mallorca, one crucial factor to consider is the timing of the purchase. Mallorca's property market varies depending on the season, so it's important to weigh the pros and cons of each time of year.

During the tourist season from April to October, there are more properties available on the market, but it can be more challenging to negotiate a lower price. However, buying during this time allows you to fully appreciate the property and its surroundings, including the location's cleanliness, sun exposure, and the quality of neighboring properties.

At the end of the season, before winter, sellers are often more willing to reduce the price to save on taxes for the upcoming year. Buying during this period can also be advantageous as flight tickets tend to be cheaper, allowing you to visit various locations and make an informed decision.

•        No noise

•        Cleanliness of the location where the accommodation is located

•        Location with the sun

•        Neighbours

•        Free access to the house 

•        and so on.

Sellers are more willing to reduce the price at the end of the season before winter. This way, they can save on taxes for the next one. One of the advantages of buying property in Mallorca out of season is that flight tickets are much cheaper. You can evaluate different locations at different times of the year and decide.

You can also see exactly how warm or cold it is in winter, whether additional heating is required. This can be discussed to reduce the purchase price.

Tip — Explore all your buying options at different times of the year. That way, you can buy a property in Mallorca at a reasonable price. 

Wrapping it up

In conclusion, buying aproperty in Mallorca can be a lucrative and exciting investment, but it's not without its challenges. With the help of a reputable and experienced Mallorca real estate agent, you can navigate the process with confidence and ease. By following the tips and secrets gathered by YES! Mallorca Real Estate Agency experts, you can avoid common pitfalls, save time, and secure a profitable deal. Whether you're looking for an exclusive finca, a holiday home, a luxury villa, or an apartment, the Mallorca real estate market offers a wide range of options to meet your needs. So, take the first step towards owning your dream property in Mallorca today!

We are proud to offer a catalogue of 750+ properties for sale in Mallorca, including exclusive fincas, holiday homes, houses directly from owners, luxury villas, and land and apartments.

As the international real estate agency in Mallorca, Yes! Mallorca Property prioritizes our clients by providing them with express offers on properties for sale in Mallorca. Our exceptional service has been reflected in our outstanding customer reviews on Google, with a rating of 5.0.

Whether you're looking to buy or sell your Mallorca property, we guarantee a fast, profitable, and reliable experience with our team. 


Guide for buying Real Estate in Mallorca, Spain

 





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