What Does It Cost to Buy a Property in Mallorca?
Dreaming of buying a property in Mallorca? One of the first questions you might ask is, “What does it cost to buy a property on the island?” While property prices depend on factors like location, type, and condition, it’s crucial to account for additional costs that go beyond the listed price. Let’s explore the expenses involved in purchasing a property in Mallorca.
Understanding the Costs
The total cost of buying a property in Mallorca typically includes more than the advertised price. As a rule of thumb, you should budget an additional 12–15% of the purchase price to cover fees, taxes, and other costs. These additional expenses depend on whether you are buying a new property or a resale.
- New Properties: A 10% VAT (IVA) is added to the purchase price.
- Resale Properties: A property transfer tax (ITP) applies, and the rate depends on the property’s price bracket.
Other costs include notary fees, land registry fees, and legal services. These are essential to ensure a smooth transaction and protect your investment.
Legal Support: An Essential Step
Hiring a lawyer is highly recommended when buying property in Mallorca.
A good lawyer will:
- Handle the paperwork and ensure legal compliance.
- Verify the property’s title and any existing debts.
- Assist with contracts, taxes, and notarial proceedings.
- Create or update your will, as inheritance laws in Spain differ from other countries.
Legal fees typically range between 1–2% of the purchase price but are worth every euro for peace of mind and a hassle-free experience. Your lawyer can also guide you in setting up a Spanish bank account to manage payments, utilities, and ongoing property expenses.
Agent and Buyer Representation
In Mallorca, sellers usually pay the real estate agent’s commission. As a buyer, this means you can rely on your lawyer or a “buyer’s agent” to represent your interests. Buyer’s agents help find the right property, negotiate on your behalf, and manage communication with the seller’s agent.
Homes in Mallorca simplifies this process by connecting members with trusted agents and professionals who prioritize your needs. This ensures you get personalized support throughout your property search and purchase.
Financing and Valuations
If you plan to finance your purchase with a mortgage, you’ll need to account for additional costs, such as:
- Bank Fees: Charges for processing the mortgage application.
- Valuation Fees: Banks require a valuation to determine the property’s market value before approving the loan.
These costs vary depending on the lender and the size of the loan, so it’s wise to get advice from a financial expert who understands the local market.
Renovation and Personalization
If you’re buying an older property, renovation costs may be part of your budget. From small upgrades to complete overhauls, understanding the costs and obtaining the necessary permits are vital. Our community connects you with trusted service providers who can help bring your vision to life.
Where Should You Buy?
Choosing the right location in Mallorca is key. Are you drawn to a finca in the countryside, an apartment in Palma, or a villa by the beach? Each area has its unique charm and price range.
Take time to explore the island before deciding. Visit different regions during various seasons to get a feel for the environment. Whether it’s Sóller, Santa Ponsa, or Pollensa, Mallorca has a wide range of areas to suit every lifestyle.
Make Informed Decisions with Homes in Mallorca
By joining the Homes in Mallorca Community, you gain access to a network of professionals and tools that simplify the property-buying process. From legal and financial guidance to finding the right neighborhood, we’re here to make your dream of owning a home in Mallorca a reality.
Ready to take the next step? Let us guide you every step of the way to make buying a property in Mallorca a seamless and enjoyable experience.
