Buying property in Mallorca is, for most investors, a carefully considered decision involving significant capital, and the legal work done before signing determines whether the asset is as secure as it looks. Raso Investments acts exclusively for the buyer, reviewing the property, the seller and the transaction so that each commitment is made with full information. Whether you are buying property in Spain for the first time or adding to an existing portfolio, the principles are the same: verify first, pay later.
Spanish conveyancing differs from the systems many international buyers know. The notary certifies the deed and checks identity and certain formalities, but does not investigate planning status, building licences or the commercial terms agreed between the parties. That independent review is the role of the buyer’s lawyer, and it is most valuable before any deposit is paid.
Buying property in Mallorca: what we review
Our due diligence is tailored to the property, but a typical review covers the following points:
- Title and ownership. We obtain and analyse the Land Registry extract (nota simple) to confirm who owns the property, in what shares, and whether it is subject to mortgages, seizures, easements, usufructs or pre-emption rights.
- Registry and Cadastre consistency. We compare the registered description with the cadastral record and the physical reality. Differences in plot size or built area are frequent in Mallorca and can affect financing, insurance and resale.
- Planning and licences. We check the classification of the land, whether the existing buildings are covered by licences, and whether any works appear to have been carried out without authorisation.
- Habitability and energy certificates. In the Balearic Islands, the certificate of habitability (cédula de habitabilidad) and the energy performance certificate are relevant to supply contracts, letting and resale.
- Debts linked to the property. Unpaid property tax (IBI), community of owners’ charges and certain municipal fees can follow the property. We request receipts and, where applicable, a certificate from the community administrator.
- Tourist rental status. If rental income is part of the plan, we verify whether the property holds a valid holiday rental registration and whether it can be maintained after the sale. See our page on the holiday rental licence (ETV).
How we work on a purchase
A purchase in Mallorca usually follows three stages, and we act at each of them.
First, the reservation or private contract. Many sales start with a reservation agreement and are followed by a private purchase contract with a deposit. In Spain this deposit is frequently structured as penitential arras under article 1454 of the Civil Code: if the buyer withdraws, the deposit is lost; if the seller withdraws, the seller must return it doubled. We draft or negotiate the contract so that conditions, deadlines and the consequences of a negative due diligence result are clear, and so that the deposit is not released before the essential checks are complete.
Second, preparation for completion. We coordinate with the notary, review the draft deed, confirm the payment structure and make sure that any charges to be cancelled are cancelled at completion. Buyers need a Spanish foreigner identification number (NIE) and, in practice, a Spanish bank account. If you cannot attend in person, a properly drafted power of attorney allows us to sign on your behalf.
Third, post-completion. We follow the payment of the purchase taxes, the registration of the deed in the Land Registry and the transfer of utilities and local taxes into the new owner’s name.
Common risks and mistakes
- Paying a deposit before seeing the Land Registry extract and the licence position.
- Relying on the agent’s description of the built area or of a swimming pool or annex that does not appear in any official record.
- Assuming that a property with a history of holiday lets automatically retains its tourist rental registration.
- Overlooking that the seller is a non-resident, which requires the buyer to withhold part of the price for the tax authorities.
- Agreeing a completion date that does not leave enough time to obtain finance, the NIE or the documents requested from the seller.
For villas and country estates the planning review is especially important. Our page on luxury villa due diligence explains the additional points we examine on rustic land.
Tax aspects of the purchase
The tax due on acquisition depends on whether the property is new or resale. A resale property is generally subject to transfer tax (Impuesto sobre Transmisiones Patrimoniales), set by the Balearic Islands. A first transfer of a new property by a developer is generally subject to VAT and stamp duty instead. The applicable rates depend on the specific case and on the regulations in force at the time of signing, so we confirm them for each transaction rather than relying on general figures.
When the seller is not resident in Spain, the buyer must currently withhold 3% of the price and pay it to the Spanish Tax Agency on the seller’s account. Failing to do so can make the property answerable for the seller’s tax debt. Ongoing ownership also carries obligations, such as local property tax and, for non-residents, the annual non-resident income tax return. We also consider whether the property should be acquired personally, jointly or through a company, a decision that affects later taxes on rental income, sale and inheritance. Every case is reviewed individually.
If you are buying from abroad, apply for your NIE number as early as possible, and see what property lawyers in Spain check at each stage of a purchase.
Frequently asked questions
Do I need a lawyer if there is already a notary?
The notary’s role is neutral and limited to the formalities of the deed. A lawyer acting only for you reviews planning, licences, debts and contract terms, and protects your interests in negotiation.
When should due diligence start?
Ideally before signing any reservation agreement or paying any deposit. Once the deposit is paid under penitential arras, withdrawing usually means losing it.
Can I buy property in Mallorca without being in Spain?
Yes. With a power of attorney granted before a notary in Spain or abroad, duly legalised and translated where necessary, the whole process can be completed on your behalf.
Can a non-EU citizen buy property in Mallorca?
As a general rule, yes. Certain areas classed as being of interest to national defence may require military authorisation, which we check when relevant to the location.
Next steps
If you are considering buying property in Mallorca, write to us at info@raso.law. Please describe the transaction and the property, including its location, the agreed or expected price, the stage of negotiations and any documents you already hold. We will review your case individually and reply in writing with the points we consider relevant. You can also read our general real estate law page.