Spain places no restrictions on foreign nationals buying property in Mallorca. There is no minimum purchase value, no nationality-specific rule, and no cap on how many properties you can own. That openness is part of why international buyers — particularly from Germany, the UK, Scandinavia, and increasingly the US — have made Mallorca one of the most resilient luxury property markets in Europe.
What catches many foreign buyers off guard isn't whether they can buy, but the specific administrative steps and Spanish tax structure involved. This guide walks through the process from start to finish.
Step-by-Step: The Purchase Process
A Número de Identificación de Extranjero (NIE) is mandatory for any foreigner buying property, signing contracts, or paying taxes in Spain. It can be applied for at a Spanish consulate in your home country before travelling, or in Spain itself at a police station or foreigners' office. Processing typically takes a few weeks, so it's worth starting this early — it is the one step that most often causes delays if left too late.
You'll need a Spanish bank account to pay the deposit, transfer completion funds, and set up direct debits for ongoing property taxes and utilities. Most major Spanish banks can open a non-resident account with your NIE, passport, and proof of address, though some require an in-person visit.
An independent Spanish property lawyer — separate from the seller's agent — checks title deeds, confirms the property is free of debts or liens, verifies planning and habitation licences, and reviews every contract before you sign. This is the single most important safeguard in the process and should never be skipped, regardless of how straightforward a purchase appears.
Once you've found the right property, a reservation contract takes it off the market, usually against a deposit of a few thousand euros. This gives your lawyer time to complete due diligence before you commit to the larger private purchase contract.
This binding contract sets out the agreed price, completion date, and conditions, backed by a deposit of typically 10% of the purchase price. If the buyer withdraws without cause, the deposit is usually forfeited; if the seller withdraws, they typically must return double the deposit.
Completion takes place before a Spanish notary, who reads the deed (escritura) aloud, confirms both parties understand it, and witnesses signature. The balance of funds is transferred, keys are handed over, and the notary registers the transaction with the relevant tax authority.
Your lawyer or gestoría registers the new deed at the Land Registry (Registro de la Propiedad) and handles payment of the transfer tax (ITP) within the 30 working day deadline. Registration typically completes within a few weeks of the notary appointment.
TSB Yachting's investment division sources off-market opportunities alongside listed properties, giving clients access to deals that never reach the open market — and we coordinate lawyers, surveyors, and architects throughout, so you have a single point of contact from search to completion.
Taxes & Costs to Budget For
Beyond the purchase price, non-resident buyers should plan for the following costs. As a rule of thumb, budget an additional 10-12% of the purchase price for a resale home, rising to 13-14% in the luxury bracket.
| Cost | When | Typical Amount |
|---|---|---|
| Transfer Tax (ITP) — up to €400,000 | Within 30 working days of completion | 8% of price |
| Transfer Tax (ITP) — €400,001–€600,000 | Within 30 working days of completion | 9% of price |
| Transfer Tax (ITP) — €600,001–€1,000,000 | Within 30 working days of completion | 10% of price |
| VAT (IVA) — new-build property | At purchase, instead of ITP | 10% of price |
| Notary Fees | At completion | €600 – €2,000 |
| Land Registry Fees | At registration | €400 – €1,200 |
| Legal / Gestoría Fees | Throughout the process | 1% – 1.5% of price |
Once you own the property, ongoing costs include annual local property tax (IBI), non-resident income tax if the property is not your primary residence, and, above certain thresholds, Spanish wealth tax. A local tax adviser can confirm your exact liability based on your personal circumstances.
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