Support for Buying Property in Mallorca

Is your dream of owning a property in Mallorca within reach? Unfortunately, there are several important factors to consider before finalizing the purchase. FALC Real Estate highlights the most crucial points for you.

10 steps to buying property in Mallorca

1. Apply for a Spanish Tax Number (N.I.E.)

The Número de Identidad de Extranjero is a foreign identification number that is valid for life and is essential for activities such as buying a property or a car. You also need the N.I.E. for setting up a phone line or dealing with insurance companies..

2. Open a Spanish Bank Account

In addition to the N.I.E., you need a Spanish bank account to purchase a property.

Tip: Compare the fees of different banks.

3. Request an Excerpt from the Property Register (Land Registry)

This excerpt will show you who the legal owner of the desired property is and whether there are any pre-emptive rights.

4. Request and Compare a Cadastral Extract with the Land Registry Excerpt

The cadastral extract must match the land registry excerpt to proceed with a property purchase.

5. Request the Buyer's Purchase Contract

6. Obtain Notices for Property Tax and Garbage Collection

As a property owner, you are required to pay property taxes and garbage collection fees. Failure to do so can result in retrospective claims for several years.

7. Obtain an Energy Certificate

Under EU law, the creation and provision of an energy certificate is mandatory before the purchase.

8. Request a Certificate of Habitability

The cédula de habitabilidad is an important document that certifies the property meets minimum standards for size, technical equipment, and sanitary facilities, and is suitable for habitation.

9. Ensure There Are No Building Violations

Unfortunately, it is not uncommon in Spain for buildings to be constructed illegally. In the worst-case scenario, your newly acquired property could be demolished. You can verify this with a Certificado de no-infracción urbanística.

10. Request Utility Bills

For added security, it is also advisable to obtain paid receipts from utility providers such as electricity, gas, water, etc.

Buying Property in Mallorca: What to Consider

Is your dream of owning a property in Mallorca within reach? Unfortunately, there are several important factors to consider before finalizing the purchase. FALC Real Estate Mallorca outlines the most crucial points for you.

Before you can buy a property, you need a Spanish tax identification number (N.I.E.). This foreign identification number is essential and multifunctional; you will need it not only for purchasing a property but also for tasks such as applying for a phone line or buying a car. We recommend scheduling an appointment with the Foreigners' Office (Oficina de Extranjería). You can also apply for the N.I.E. number at the Spanish consulate.

In addition to the tax number, you will need a Spanish bank account to acquire property in Mallorca. Generally, this can be done relatively easily. As non-residents (without registered residence in Spain), you usually only need an ID card or passport and translated proof of income. It is advisable to research which bank you want to open your account with in advance, as the fees can vary significantly and are relatively high.

Additional Documents for Your Property Purchase in Mallorca

Beyond the fundamental requirements mentioned above, there are also several documents necessary for acquiring property. During a process known as due diligence, the technical, legal, and tax conditions are carefully examined. You must undertake this step before purchasing a property in Mallorca to mitigate any risks. This examination is essential to potentially claim a contract withdrawal or compensation later on.

An excerpt from the property register or land registry will show you who the legal owner of the property is and whether any pre-emptive rights are registered. However, unlike in Germany, where the land registry entry is the decisive step in the sale or purchase of a property, in Spain, it is the purchase contract that is crucial. You will also need a cadastral extract. The Spanish cadastre serves a different function compared to the German one. The Spanish Cadastre Office determines the annual property tax based on owner data or aerial photographs. Therefore, it is possible for the cadastre data to not match the property register data. For a property purchase, the consistency of this data is essential. FALC Real Estate can provide you with detailed advice on this step.