Buyer Roadmap — from the search to the keys
*The common thread through the whole glossary: what happens, and in what order, when buying property on Mallorca — with a reference to the relevant detailed chapter. Ideal as an introduction and a checklist.*
Rules of thumb up front: Total ancillary costs ~10–13 % (resale) or ~12–13 % (new build). Total duration typically 2–4 months. The most important protection: your own, independent lawyer + architect before signing.
Phase 0 · Preparation (before the search)#
| Step | What it is about | Detail |
|---|---|---|
| Apply for NIE | tax/foreigner number — mandatory for purchase, bank account, taxes | → 02 |
| Spanish bank account | for taxes, utilities, direct debits | → 03 |
| Budget incl. ancillary costs | budget ~10–13 % on top of the purchase price | → 04 |
| Clarify financing | LTV for non-residents ~60–70 %, FEIN | → 15 |
| Nationality check | Non-EU? Plan early for the Military Permit for fincas | → 14 |
| Have funds ready | prepare proof of origin, FX broker (non-euro) | → 03 |
Phase 1 · Search & selection#
- Reading listings: interpret
m² construidosvs.útiles,a reformar,primera líneaetc. correctly
→ 29
- Property type: apartment, villa, finca (rústico!),
nuda propiedad? → 17 - Location & rentability: municipal zoning, is ETV permitted? → 11 · 12
- Estate agent: in the Balearic register (Ley 3/2024)? Commission usually paid by the seller → 16
Avoid the cardinal mistake: „The finca has a cédula = I can use Airbnb." Wrong — tourist rental additionally requires an ETV/Agroturismo + places → 11 · 27.
Phase 2 · Due diligence (before any deposit!)#
| Check | What to watch for | Detail |
|---|---|---|
nota simple | owner, encumbrances/mortgages/embargos — „libre de cargas"? | → 02 |
| Legality | building/first-occupancy licence, fuera de ordenación, illegal extensions | → 09 · 21 |
cédula de habitabilidad | present/valid? (utilities, ETV, sale depend on it) | → 09 |
| Cadastre vs. reality | reconcile areas/rooms/extensions | → 02 |
| Community | freedom from debt, derramas, estatutos (ETV ban?) | → 05 · 35 |
| Finca extras | right of way/access, well/water rights, legal wastewater? | → 26 · 21 |
| Utilities | legal electricity/water connection (no connection without cédula!) | → 26 |
Phase 3 · Contract & deposit#
contrato de arras: clarify the type!penitenciales(the deposit is forfeited) vs.confirmatorias.
Conditions (freedom from encumbrances, cédula, financing, Military Permit) as grounds for withdrawal. The deposit held in escrow by the notary, not paid directly to the seller → 01
- Word the financing condition precisely, otherwise the deposit is lost → 01
Phase 4 · Notarisation (escritura) & payment#
- Notary appointment: check of encumbrances, reading out,
manifestaciones, final payment (cheque bancario/
transfer), handover of keys → 01 · 02
- By power of attorney (
poder notarial) possible if you do not travel → 02 - If the seller is a non-resident: the buyer withholds 3 %
retención→ 06 - Declare the matrimonial property regime (for married couples) → 01
Phase 5 · After the purchase#
| Step | Deadline | Detail |
|---|---|---|
| Pay tax | ITP/AJD (Modelo 600) 30 working days | → 04 |
| 3 % withholding | Modelo 211 1 month (non-resident seller) | → 06 |
| Land register entry | via a gestoría | → 02 |
| Update the cadastre | cambio de titularidad | → 02 |
| Utilities | change of holder for electricity/water | → 26 |
| Insurance | seguro de hogar (with a mortgage: fire cover mandatory) | → 28 |
| IBI transition | settle pro rata | → 05 |
Phase 6 · Ownership, use & later#
- Ongoing taxes/costs: IBI, waste,
comunidad, IRNRrenta imputada(even with
- Renting out? ETV licence + places + RC insurance + guest registration → 11 · 28
- Renovating? renovation IVA 10 %, licence, subsidies → 25 · 26
- Moving/living here: residence, health insurance, car/ITV, school → 19 · 20 · 30
- Inheriting/gifting: Balearic foral law, 100 % ISD allowance → 08
- Selling: optimise capital-gains tax (reinvestment, over 65), Plusvalía → 31 · 06
- Separation/divorce: dissolution of ownership (
extinción de condominio) → 34
The 12 most important „stop" signals (check for deal-breakers)#
1. encumbrances/embargos in the nota simple 2. missing/expired cédula 3. illegal construction on rústico protegido (perpetual demolition risk) 4. ETV desired, but zone/community prohibit it 5. non-EU + finca without a planned Military Permit 6. access/right of way not secured 7. illegal well/electricity connection 8. valor de referencia above market price (tax trap) 9. „B money" demanded 10. nuda propiedad instead of full ownership 11. casita de aperos presented as a „dwelling" 12. short remaining term on concessions (e.g. a mooring berth). → Details in 21.
Key takeaway: Every step has its chapter. When in doubt, never pay before the nota simple and never sign without your own lawyer.