Buying a Property in Mallorca: A Step-by-Step Guide

Mallorca and Ibiza are two of the most popular destinations for those looking to buy property in Spain. With their stunning beaches, idyllic landscapes and vibrant cultures, it's no wonder that so many people are drawn to these islands. However, buying property in Mallorca or Ibiza can be a complex process, so it's important to be well-informed before you start. Here's a step-by-step guide to help you through the process:

1. Apply for a NIE Number (Número de Identidad de Extranjero)

The first step in buying a property in Mallorca or Ibiza is to apply for a NIE Number (Número de Identidad de Extranjero). This is a Spanish tax number that is required for a wide range of activities in Spain, including opening a bank account, signing a rental agreement and much more. You can apply for a NIE Number at the Oficina de Extranjería in Palma, located at Carrer de Felicià Fuster, 7, 07006 Palma, Illes Balears.

2. Open a Spanish Bank Account (Cuenta Bancaria)

Whether you're paying for your property in cash or financing it, you'll need a Spanish bank account (Cuenta Bancaria). This will be used to pay for the running costs of your property, such as taxes and electricity. When choosing a bank, it's worth looking for one that offers multilingual services, as this will make it much easier for you to navigate the banking system.

3. Check for Arrears

Before you buy a property, it's important to check that the seller is up to date with their payments. You should ask to see payment receipts to confirm that all taxes and bills relating to the property have been paid. If the property is part of a residential complex, make sure to check that the community costs have also been paid. Otherwise, you could be held responsible for paying them for up to two years after the purchase.

4. Obtain a Cédula de Habitabilidad

The Cédula de Habitabilidad is one of the most important documents to have when buying a property in Mallorca or Ibiza. This certificate confirms that the property has a correct installation of all electrical wiring and pipes and is therefore habitable. It is also based on the number of people that can live in the property. For example, per double room should be 2 people. So if you want to buy a property with 4 bedrooms, you should ideally have a Cédula de Habitabilidad for 8 people.

5. Get an Energy Pass

An energy pass is a useful document that shows the energy values of the property and has been mandatory for sales and rentals since 2013. Make sure the seller can show a valid energy certificate for the property.

6. Obtain an Escritura Pública

The Escritura Pública is a certified copy of the notarized deed of sale. This document proves that the property is registered in the land register and that the seller is the actual owner of the property.

7. Get a Nota Simple

The Nota Simple is an extract from the land register. It will give you insight into the mortgage debts, unpaid taxes, possible hereditary liens and rights of use, as well as the classification of the property (Urbano or Rustico). You can also find out the total square footage of the property, house or apartment in the Nota Simple. It is important to review this document before making a purchase to make sure there are no hidden surprises.

8. Sign a Purchase Contract and Option Contract

From a legal perspective, you can sell a property in Mallorca or Ibiza on a piece of paper. However, privately written sales contracts in Spain are not recommended as they have the disadvantage that the land register entry cannot be updated. It is always best to have the draft and final purchase contract drawn up by a notary and only sign it by a notary.

The option contract is a common part of a property purchase in Mallorca and Spain. In the option contract (Contrato de Arras), the final purchase price is recorded and a down payment, usually 10-15% of the purchase price, is agreed. After transferring the deposit, the buyer now has an agreed period of time to finally purchase the property.

9. Consult with Mallorca Select

Buying a property in Mallorca or Ibiza can be a complex process, and it's important to have expert guidance to ensure that everything goes smoothly. That's where Mallorca Select comes in. Our experienced team of real estate professionals can help you every step of the way, from finding the perfect property to navigating the legal and administrative processes. We'll work with you to ensure that you find the property that meets your needs and budget, and that the purchase process is as stress-free as possible.

If you're thinking of buying a property in Mallorca or Ibiza, we encourage you to contact us today to see how we can help. With our local knowledge and expertise, we'll make sure that your property purchase is a success.

By following these steps and consulting with Mallorca Select, you'll be well on your way to finding and purchasing your dream property in Mallorca or Ibiza.