Mallorca properties - Villas, Fincas, Country houses and Apartments for sale and for rent - Engel & Völkers
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Real Estate Agent
Choose a professional Real Estate Agent who will guide you finding the right property and assist you with all the legal steps.
IBI Real Estate Tax Receipt
Once you have found the right property it is necessary to check the following:
- The receipt of the paid IBI (Impuestos sobre Bienes Inmuebles), the annual real estate tax. This can be done at the local town hall.
- If the property of your choice is newly built ask the seller for a copy of the declaration of new construction together with a copy of the declaration of alteration of property of an urban nature, this will prove that the property is registered for eventual payment of I.B.I.
Check the property registration
At the Land register, which is available for public inspection, you can check if the owners of the property or land are registered and if there are any outstanding mortgages or claims against the title holder. Do not buy a property before you have received the current land register information.
Depending to the private purchasing contract it would be suitable to involve a solicitor who is registered in Mallorca. We will be happy to provide you with an experienced solicitor.
After you have bought the property by a private purchasing contract with a down payment of 10% of the whole purchasing sum, you can go to a Spanish notary to sign the purchasing deed and to pay the rest of the purchasing sum. Or you can go directly to the notary.
Make sure that the seller sells the property free of charges, tenants and mortgages. Either both parties or their authorized representatives must sign this contract in the presence of a Spanish notary. After that the new owner can be registered in the Land registry.
Property owner's community
Make sure that the latest receipt for the yearly or monthly maintenance charges, the community costs and the community reserves have been paid and ask the president or the administrator for a copy of this and a copy of the meeting minutes and the community regulations.
Fees and taxes
In accordance with Spanish legislation and the terms agreed, the buyer shall be responsible for:
- VAT if the seller is the property developer and it is the first sale (the applicable rate is 7% if it is a dwelling and 16% if it is a plot of land or premises), plus 1% of the purchase price in the Balearic Islands as Property Transfer Tax, or if the seller is not the property developer or it is not the first sale, the Property Transfer Tax (7% of the purchase price).
In order to revive the construction industry and to encourage the sale of completed housing, the Spanish government has decided to reduce the VAT applicable on the sale of homes directly from the developer from 8% to 4% until 31 Dec 2012.
- Expenses derived from the Land Registry, the Notary Public and solicitor's fees, in the event of employing the services of a solicitor.
The seller shall be responsible for:
- The Capital Gains Tax on Urban Land, since the seller benefits from the increase in the cadastral value of the land.
- Real estate agency's commission (to be deducted from the purchase price) plus the corresponding solicitor's fees, in the event of having employed the services of a solicitor.