What to consider when buying property in Mallorca?
If you are buying property in Mallorca, you are one of the lucky few. Whereas millions get to visit and spend their holidays here, only a small percentage get to own property on the island. Buying real estate is an exciting experience. Maybe you’re relocating, buying your first home, your dream holiday home or making an investment; whatever the case, it is bound to be life-changing. Balearic Properties listens to your every need and takes you on an adventure to find dream properties.
The company philosophy is to gain a precise understanding of client requirements and visions in order to find the perfect island retreat for each individual lifestyle.
Buying real estate in Mallorca is a dream come true
Mallorca is popular with foreign buyers and expats looking to escape their cold and busy lives. Our international clients come from countries like United Kingdom, Germany, Belgium, and Sweden. We have over 20 years of experience in handling property purchases in Mallorca for international buyers, and can help you with all your real estate concerns. The weather and unique lifestyle Mallorca has to offer has made the island a prime destination for foreign buyers looking for luxury.
What to consider before buying property in Mallorca?
Back in 2017, 40% of properties in Mallorca were sold to foreigners. That’s thousands of properties which were bought by families and investors choosing Mallorca over other real estate markets. The most important considerations when buying property in Mallorca include knowing where you want to buy property, deciding on what type of property you want, figuring out your budget and financing options, and above all choosing the best property to suit your desired Mallorca lifestyle.
Figure out your budget
Cash buyers don’t have much to think about if they already know how much they want to spend. However, if you are looking to buy property in Mallorca with a bank loan, it’s important to speak to a mortgage broker or local bank to figure out your budget as down payments range from 10-30%.
Choose a professional estate agent
Every real estate agency will say they’re the best. Don’t take their word for it. Go visit as many real estate agencies in Mallorca as you can to find the property and agent that’s right for you. Buying property in Mallorca is a big deal. You’ll be spending a lot of money, so it’s important to get it right.
Find the perfect location
Speak freely and tell us what you’re looking for. Are you searching for an investment, holiday home or family residence? We’ll listen, and present you with the best properties in Mallorca. Our offices and local experts cover the entire island, with an in-depth knowledge of all the areas in Mallorca.
Make a wise property investment
If you’re looking to make money from buying property in Mallorca, let’s go find you the best real estate investments available. Are you looking for capital growth or rental income? If you decide to rent your villa as a holiday home it can help with your mortgage costs and management expenses.
The process of buying real estate in Mallorca
What does buying property in Mallorca involve?
- Placing a formal offer (this usually includes paying a 10% deposit)
- Paperwork (you will need an NIE tax number among other documents)
- Finance (explore your home loan options with your chosen bank or mortgage broker)
- Searches (performing legal background checks on vendors, the property, presence of debts, etc.)
- Taxes (approximately 10-15% of purchase price)
- Completion (final exchange of contracts with all parties involved, including final payments)
- After sales (transfer of utilities and other legal paperwork after buying property in Mallorca)
Find a good lawyer in Mallorca who knows about property
Unless you’re a legal expert fluent in Spanish, you will need help with all of the above procedures. Lawyers charge approximately 1-1.5% of the purchase transaction, but it is well worth it. Spain is a very bureaucratic country and it is highly recommended to choose a good lawyer when buying real estate. Your lawyer will represent you throughout the purchase process and even afterwards when dealing with paperwork. Many foreign buyers also opt to give their lawyers power of attorney.
Expenses related to buying real estate in Mallorca
When considering the other expenses related to buying property in Mallorca, always expect approximately 10-15% of the property purchase price, including:
- Notary fees 600-1000 euros
- Property registration 400-650 euros
- Legal agency costs (Gestoría) 250-500 euros
- 4-11% ITP* transfer tax (Impuesto sobre Transmisiones Patrimoniales)
- 1.2% Stamp duty
- 10% VAT** (IVA)
- 0.5%-1.5% IAJD** tax on documented legal acts (Impuesto de Actos Jurídicos Documentados)
- Property valuation cost*** 800-1000 euros
* When purchasing previously owned property
** When purchasing new developments
*** When purchasing with a mortgage
Why choose Balearic Properties when buying properties in Mallorca?
Our international team of real estate experts have been dealing with properties in Mallorca since 1995. We have won many international awards, and we are proud of our professional reputation in Mallorca and abroad. With our offices in both Pollensa and Puerto Portals, we cover all areas in Mallorca, and can advise you on luxury villas, apartments, frontline properties, commercial real estate and everything in between. Thousands of international buyers have trusted us, you can, too.
We are professional experts
We have been in the real estate game for a long time. We know exactly what to do and how to help to make sure all your dreams come true. When buying property in Mallorca there are a lot of options, but none are as comprehensive and all-inclusive as our real estate services.
We present only the best properties
Our large portfolio of properties in Mallorca include luxury villas, country homes, sea view apartments and townhouses. We also deal with many confidential and private luxury property sales, so it’s always a good idea to check in with us to see what’s not publicly listed for sale.
We help you find the perfect lifestyle
Tell us what kind of life you wish you live in Mallorca, and we’ll present you with all the options. If you’re looking for peace in the rural countryside, or want to get hypnotised daily by panoramic sea views, we’ll match those desires with all your other wants and needs to find your dream home.
We handle all your property needs
Balearic Properties will remain by your side long after buying property in Mallorca. After the purchase process, we will cater to your every need, providing the best after sales support. Whether this means property management, holiday rental services or renovations, we’ve got it covered.
Interested in buying property in Mallorca? Contact us today!
Balearic Properties will stand by your side from the very beginning, right until the very end, when buying property in Mallorca. We believe in offering a personal service, and at the end of the day, we take pride in knowing we match great people with great properties. Buying real estate in Mallorca is the start of a grand adventure, and we look forward to being part of it. If you’re thinking about buying a home on the island, visit our offices to discuss your Mallorca real estate dreams.