• Mallorca Informations for Property Buyers

  Mallorca Informations for Property Buyers

  Buying  process in Mallorca
  First of all  when the desired property to buy has been found the next step is to secure it. Normally the lawyers will  draft a purchase contract and consecutively a deposit of 10% has to be paid.  On completion a deed of conveyance “escritura pu’blica” must be signed by both parties under notarial supervision in Mallorca,  normally if finance is required to buy the property we can arrange mortgages trough a spanish bank up to 70% of the value of the house, due to the actual financial crisis the bank will first carefully study your income papers and this can take approx. 2 weeks.  Some purchase contracts can be negotiated subject to becomming the mortgage approval , this can be then discussed with the solicitors.

  Legal Advice in Mallorca
  Is it necessary to appoint a Mallorca notary? Yes. Who pays the legal fees? Notary’s fees are paid by the buyer, and it is advisable to appoint a local lawyer in mallorca  who speaks the purchaser’s language who will carry out a title search, and advise the purchaser on all aspects of the investment.

  Taxation in Mallorca
  Is there a purchase tax? On new residential buildings there is VAT (IVA) charged at 7% of the value, plus 1% stamp duty, and these are paid by the purchaser. However, on urban plots, commercial premises and some garages (not annexed to a home) purchased from developing or trading companies, VAT is 16%. On re-sales there is a property transfer tax set at 7%. In all cases there is a surplus value tax plusvalia (not to be confused with capital gains tax payable by the seller on the profit made when selling the property). In theory, plusvalia is paid by the seller, and is a municipal tax on the increase in value on the land only. However, it may be subject of negotiation between buyer and seller.

  Registration
  Is it necessary to register the new ownership? Yes, this is done by entering the deed of conveyance escritura publica ( Property Title Deed)at the land register office.
  Property Ownership
  Are there different methods of ownership?
  Apart from individual ownership, a property can be owned by one or more companies. Owning companies can be Spanish, from countries with double taxation agreements with Spain or offshore or a combination of these.

  Professional advice:
  The laws and people’s personal circumstances continuously change. These questions and answers are only general, and we strongly recommend that you contact a professional lawyer or financial advisor. Our office would be delighted to recommend reputable professionals in both fields. Please ask our profesional sales team to recomend you an enqglish speaking solicitor in Mallorca.

  Annual Property Taxes
  I.B.I . (Impuesto Bienes Inmuebles)
  This is a real estate tax levied by the local townhall and is usually 0.85% of the cadastral value (valor catastral).

  Registration
  Is it necessary to register the new ownership? Yes, this is done by entering the deed of conveyance escritura publica at the land register office.

  Find the best Property in Mallorca with Real Estate Balearic Properties

   

  Visit also the following Property Links for property in Mallorca:

  Andratx Property

  Pollensa Property

  Palma Property

  Soller Property

  Alcudia Property

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