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Legal guide to buying property in Mallorca: taxes and expenses
- InMallorca Inmobiliaria
- May 26
- 4 min read
Buying a property in Mallorca is an exciting decision, whether to live in, invest in, or enjoy a second home. However, in addition to the purchase price, there are taxes, expenses, and legal procedures that you should be aware of before finalizing any transaction.
In this legal guide to buying property in Mallorca, we clearly explain the main taxes and expenses associated with buying a property, whether you are a resident or a foreign buyer.
What are the costs involved in buying a property in Mallorca?
When buying a property in Mallorca, you shouldn't only consider the price of the property. Additional expenses typically range between 10% and 15% of the purchase price, depending on the type of property and the buyer's circumstances.
The main costs are:
Taxes
Notary
Property Registry
Legal services and advice
Mortgage (if applicable)
Understanding all these concepts is essential to avoid surprises and plan the investment correctly.
Property Transfer Tax (ITP) in Mallorca
The ITP is the main tax when you buy a second-hand home in the Balearic Islands.
The amount varies depending on the purchase price and is applied in progressive brackets. In Mallorca, this tax can range approximately from 8% to 13%.
For example:
Lower-value homes → smaller type
Luxury properties → higher percentage
This tax must normally be paid within 30 days of signing the purchase agreement.
VAT and Stamp Duty on new construction
If you buy a newly built home, instead of ITP you will pay:
VAT (normally 10%)
AJD (Documented Legal Acts)
The AJD in the Balearic Islands usually ranges between 1.2% and 2%, depending on the type of operation and circumstances.
It is important to differentiate between new and second-hand housing because it completely changes the taxation of the transaction.
Notary and registration fees
All real estate transactions in Spain must be formalized before a notary and subsequently registered in the Property Registry.
Notary
The cost depends on the value of the property and the complexity of the deed.
Property Registry
It serves to officially register the new owner and guarantee legal security.
Although they are minor expenses compared to taxes, they must be included in the total budget.
Do I need a lawyer to buy a property in Mallorca?
It is not mandatory, but it is highly recommended, especially if you are a foreigner or are buying a high-value property.
A specialized lawyer can help you:
Review contracts
Check charges or debts
Check licenses and urban planning status
Coordinate the entire legal operation
In Mallorca, many transactions involve international buyers, so having legal advice provides peace of mind and security.
Taxes and expenses if you are a foreigner
Mallorca is one of the favorite destinations for international buyers, but there are some additional requirements.
NIE number
Every foreign buyer needs to obtain an NIE (Foreigner Identification Number).
Bank account in Spain
It is advisable to have a Spanish bank account to manage payments and taxes.
Control of the origin of funds
Banks and notaries may request documentation that justifies the origin of the money used in the purchase.
These procedures are part of European regulations against money laundering.
Mortgage: expenses and important aspects
If you need mortgage financing, you should also consider some additional costs:
Property valuation
Opening fee (if any)
Linked insurance
Specific bank charges
Currently, most mortgage expenses in Spain are covered by the bank, although it is advisable to review each specific case.
Legal checks before buying
Before signing any contract, it is essential to review:
simple land registry note
Urban planning situation
Existence of liens or encumbrances
Energy certificate
Certificate of occupancy
Statement of community and IBI payments
These checks help prevent future problems and ensure that the operation is completely safe.
Earnest money contract: what you should know
In Spain it is common to sign a preliminary sales agreement before the final deed.
Through this agreement:
The buyer provides a financial deposit.
The property is reserved
Both parties assume legal commitments
Normally, if the buyer withdraws, they lose the deposit, and if the seller cancels the transaction, they must return double the amount.
That's why it's important to carefully review this document before signing it.
How much money do I really need to shop in Mallorca?
As a general rule, you should have approximately:
10%-15% additional to the purchase price for taxes and expenses
Initial payment if you apply for a mortgage
Funds for possible renovations or furniture
Planning your budget well is key to shopping with peace of mind.
Most common legal mistakes when buying a home in Mallorca
Some common mistakes are:
Not reviewing the urban planning situation
Buy without legal advice
Not calculating taxes and expenses correctly
Signing contracts without understanding all the clauses
Do not verify registered encumbrances
Avoiding these mistakes can save you a lot of problems and unexpected costs.
Buy your home in Mallorca with confidence.
Buying a property in Mallorca is a great investment and a unique opportunity to enjoy one of Europe's most attractive destinations. However, a thorough understanding of taxes, expenses, and legal aspects is essential to avoid surprises and ensure a secure purchase.
At InMallorca Real Estate, we guide you through the entire buying process, offering personalized advice and professional support to help you find your ideal property with complete peace of mind. Contact our team and discover how we can help you buy in Mallorca safely and transparently.
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