Buying a property in Mallorca is probably one of the most important economic decisions for both individuals and businesses. That is why it must be done carefully from start to finish, advised by trusted professionals who know the local real estate market well, and above all, can deal with the legal issues that are involved in such transactions. Leaving it in the hands of experienced professionals means less surprises later on, and a watchful eye over the planning and budget so as to keep costs the same as expected.

To keep in mind

The first step is to carry out a comprehensive check on the property to ensure that it adheres to building code for the area and that this has not been changed without permission. This is a procedure that must be checked with the property’s local council offices.

Furthermore, it is also appropriate to carry out architectural or building maintenance surveys in order to identify any potential issues, this involves a team led by an architect.

The second step is to check that there is no debt/liability on the property. For example, mortgages, taxes or issues with tenants.

Thirdly; when buying a property in Mallorca, it is necessary to keep in mind that in Spain there are different tax rates depending on when and under which circumstances the property is acquired. If the house is under construction 21% VAT will apply, if completed it will be 10% and if it is second hand the buyer must pay a transfer tax that can range between 8 and 11%.

Francisco Mercadal Alabern

BUFETE MERCADAL

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