Worth knowing

General tips for buying real estate in Mallorca

Buying a property is not an everyday occurrence for most people. Especially not if the dream property is located abroad. Different laws and cultural idiosyncrasies can make smooth acquisition considerably more difficult.

We have compiled a list of things you should consider when buying a property in Mallorca.

What you should consider when buying a property in Mallorca

  1. Please note that purchase contracts already concluded verbally are valid.
  2. The private written contract, often referred to as a preliminary contract, is not a preliminary contract at all, but rather the final contract, which is drawn up with regard to the
  3. entry is still to be notarized.
  4. A down payment or installment payment is possible, but should be secured.
  5. Before signing any contract, even a preliminary contract, the seller should present the Escritura that he has signed. On the Escritura, if the seller has been registered, a corresponding note from the land register can be seen.
  6. An extract from the land register should also be requested before signing to ensure that there are no encumbrances.
  7. As the encumbrances do not have to be registered (exception: the mortgage), the buyer should insist that the exemption from encumbrances is included in the deed when the purchase contract is notarized.
  8. The notary is obliged to request an extract from the land register before notarizing the purchase contract. He is also obliged to inform the land registry of the notarization on the same day. The buyer should make sure that the notary has fulfilled both obligations.
  9. After notarization, the above-mentioned “priority notice” (asiento) should be entered in order to prevent conflicting rights or the escritura of another purchaser from being entered after notarization and before the own escritura is entered. The expiry period for this entry, which is generally 60 days, must be observed.
  10. Before registration, the above-mentioned taxes must be paid and the payment noted on the Escritura.
  11. If an undeveloped plot of land is to be built on, the buyer should make sure that it is building land and obtain the relevant building permit.
  12. Furthermore, he should have the new building declaration, which must be submitted in a notarial deed, presented to him after completion of the building work. This declaration of new construction must be entered in the land register, otherwise the building will be considered a “black building” and may be demolished without compensation.
    Furthermore, the buyer should obtain a certificate of habitability, as otherwise he cannot conclude any contracts with the utility companies (water, electricity).
  13. If a property is purchased as part of a condominium (apartment, house in a vacation complex, restaurant), the buyer should ask to see the declaration of division, which is entered in the land register, and, if applicable, the articles of association. Both documents are used to determine what belongs to the special property and what belongs to the common property, and they can also be used to determine the distribution key, e.g. for the costs.
  14. The buyer should inquire whether his seller/owner has paid all his bills or whether there are still arrears.
  15. The buyer should be aware that the acquisition of a property through a company set up specifically for this purpose (e.g. GmbH) is not necessarily a tax-saving model.
  16. If a deceased person has “left behind” a property in Spain, the following should be noted:
    1. Check with the central probate register in Spain whether a testamentary disposition of the deceased has been recorded there.
    2. Issue of an international death certificate by the competent registry office.
    3. Certificate of inheritance, which must be applied for in notarized form before the competent probate court, or the testamentary disposition and the opening transcript of the probate court.
    4. As a rule, a notarized declaration of acceptance of inheritance is also required, as otherwise the heir will not be entered in the land register in Spain.