What do I need to know about buying a house in Mallorca in 2021?


A step by step guide to buying a house in Mallorca in 2021

How to buy a property in Mallorca

If you are looking to purchase property in Mallorca (Spain) this year, there are a few bureaucratic steps you will need to know about before you start and others to avoid. 

The bureaucratic process of buying real estate in Mallorca can be confusing if you are new to it, and there are some points worth learning about first, to help you avoid scams or expensive mistakes. This is also useful for tax reasons, like understanding the capital gains tax and what taxes you will have to pay in order to buy a house in Spain. A bit of research into and ups and downs of the property market of the area you wish to buy in also helps enormously.


What documents do I need to legally buy a house in Mallorca?

Do I need a NIE?


YES. In order to buy a property in Mallorca legally you are required to have a NIE ( Numero de Identidad de Extrajeros ). Your NIE is unique and does not expire. It is also needed to carry out any form of legal transaction in Spain, and you will have to have it to sign the Deed. 

Getting a NIE is not difficult, though it can be time consuming. It is often easier to speak to your real estate agent or hire the services of a gestor to get the paper work ready for you.

Do I need a Spanish Bank Account?


NOT NECESSARILY. Having a Spanish bank account is not a legal requirement to buying a house in Mallorca, however, if you do have one it will certainly make things easier for you; the formalities, the speed to transactions and possibly the amount you pay in commissions may make having a Spanish bank account worthwhile before you buy a house in Mallorca.

Do I have to be a Tax Resident?


NO. However, if you own a house in Spain and you are not a resident in Spain you will be required to appoint a tax representative.


The buying process - Step by Step


There may be small variations, depending on the type of property, area, of the island usage, nationality of the buyer and seller, these are the key steps to buying a house in Mallorca:




The costs are paid mainly by the buyer.

Property Transfer Tax - 6-10% or 10% IVA (VAT) for new builds.

Notary Fees, Title Deed and Registration Fee - 1-2,5%.

Legal Fees - 1-2% (incl IVA).




You can get your NIE number either from the Extranjeria Offices in Palma or with the help of a gestor and/or your real estate agent.

It is also worth noting here, that you can apply for Spanish citizenship as a property owner in Spain. This is called the Golden Visa Residency Programe. 




Again, you can do the work yourself or hire the services of a professional property finder or real estate agency.




Once you find the house you want to buy, you will sign a reservation agreement and letter of intent, where you negotiate the terms and agree. At this point the downpayment is paid directly to the seller.




Then you pay the Transfer Tax and update the property details at the land registry.


Taxes you will have to pay to buy a house in Mallorca


As a new porperty owner on the island you will be required to pay taxes every year, regardless of whether you are a Spanish resident or not. However, they vary.

If you a Resident in Spain - You are subject to Income Tax (as well as Capital Gains Tax) and IBI (property tax).

If you are Non-Resident in Spain - You are subject to Income Tax (as well as Capital Gains Tax) and IBI (property tax). AND ALSO Non-resident property tax.




If you would like further information on the ins and outs of the buying process, the taxes and costs, or help finding a house to buy in Mallorca, please contact us at one of our offices in the north of Mallorca: 


Pollensa Office

Vía Pollentia 17 (07460) 
Pollensa Office

Puerto Pollensa Office

Paseo Saralegui 48 (07470)

Puerto Pollensa Office

Puerto Alcudia Office

Carrer dels Mariners 8 (07400)

Puerto Alcudia Office

New development of luxury apartments with community pool in Pollensa


Reference n.: A2091
Location: Pollensa