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Buying & selling property

Looking to buy a property in Mallorca but are unsure of the process and costs of buying on the island?  Our step by step guide to buying and selling in Mallorca, give you the key information including, who needs to get involved, the process of buying, who pays what and more importantly a guide to how many additional costs there are in buying a property. 

Buying a home

Below is our guide to the key information and costs you need to know when buying or selling a home in Mallorca. However, we always recommend speaking to a lawyer at the start of the process (we can help you with this), to ensure you are getting the most up-to-date and accurate information possible.   


Once a property has been found and the price agreed upon, each parties' lawyers are informed, so they can investigate the premises and check that the property´s status is legal.


Once lawyers are satisfied with the investigation, an OPTIONS CONTRACT will be drawn up.  This legally binding contract commits the buyer and seller to the purchase of the property and entails a holding fee which is negotiated between parties (between 2-10% of the asking price).


If the buyer pulls out for any reason after signing the OPTION CONTRACT (other than issues specifically covered in the contract), they will forfeit the deposit.  If the seller pulls out, they must return the deposit to the buyer and pay an additional penalty equal to the original deposit.


Depending on the time it takes to get a mortgage, expect 4-6 weeks from the signing of the OPTION CONTRACT to completion and handover.  To do this, all parties, including representatives of the bank, estate agency and solicitors meet in front of a public notary to exchange final payments and to sign and exchange the deeds (Escrituras).


When it comes to the handover, the seller should show receipt of payment for all taxes, utilities and community charges to ensure the property is handed over debt-free, The buyer will pay the property tax, VAT (IVA), if applicable (ie not for new build properties or land) along with any registration and notary fees (see below for more information).

Costs of buying a home

As a rule of thumb, when working out the total cost of buying a home in Mallorca, take the selling price and add 11% to it. This can change depending on house cost and complexity, so we recommend you use these figures as guidelines only.

Property taxes

These are the based upon  current tax levels

Tiered Property Tax (on existing builds)

  • Up to €400,000 - 8%

  • €400,000 - €600,000 - 9%

  • €600,000 - €1,000,000 - 10%

  • €1,000,000+ - 11%

For new builds from a developer, no property tax is paid, rather VAT (IVA), set at 10%. Land also owes IVA at 21%.

Lawyer & notary fees

These are estimates based upon the value of the property & complexity

  • Lawyer fees cost around 1-1.5% (depending on purchase complexity (plus 21% IVA on lawyer fees)

  • Notary Fees cost around 1,000 Euro (plus 21% IVA)

Mortgage fees

These will depend on each bank, use numbers as an estimate

  • Expect to pay around 1% as a mortgage fee in Spain, but these can vary between 0.5% and 2% depending on risk, credit history and the amount being borrowed

  • For most non-resident buyers, Spanish banks will only lend up to 70% of the value of an existing property

  • Non-resident buyers wanting to build, banks will likely only offer up to 50% of the total

  • A resident of Spain is able to borrow 80-90% of the total value (either for building or an existing property)

Costs of selling a home

When selling a home, you will have to factor in the costs of both the real estate agent's commissions and taxes.  The process also differs depending on if you are a resident of Spain or a non-resident.  See below for our guide.

Fees & charges

Real Estate Agent Fees

  • ​3-6% of final sale price + 21% I.V.A

Capital Gains Tax (if this is not your primary property)

  • Non-Residents -  ​19% on net profit

  • Spanish Residents 19-26% on net profit

See below to work out if you are liable for capital gains, if not, you do not have to pay.

Calculating capital gains tax 

  • Your capital gains tax liability is based upon the difference between the net buying price and net selling price (after all taxes and deductibles)


  • Costs and taxes incurred in either the buying or selling of the property must be taken into account, sellers can also make deductions based on any improvements (provide receipts)

  • Simple Example of Capital Gains taxable profit

    • Purchase Price - €100,000 + €8,000 Taxes and Fees = €108,000

    • Selling Prices -  €150,000

    • Deductions - €9,000 Taxes and fees - €20,000 improvement costs - €29,000

    • Total Taxable Profit - (€150,000-€29,000) - €108,000 = €13,000

  • Capital Gains tax is paid to the Tax Authority (Agencia Tributaria) via a Modelo 210 form

  • The main home sale for a resident over 65 years old will not owe capital gains if certain conditions are met

Non-resident sellers

  • If the seller of a property does not reside in Spain, there is a 3% withholding tax (to cover any potential capital gains)

  • The buyer essentially withholds 3% of the purchase prices and pays it directly to Agencia Tributaria via a Modelo 211 form.  A copy of this submission should be given to the seller

  • Once the seller has then calculated any potential capital gains taxation from the sale of the property, they can claim back this withholding tax (either full or partial) by submitting a model 210 form.  This should be done within 4 months of the sale

  • Expect any tax refunds to take up to 6 months

How can we help?

Buying a House

At Mallorca Expats, we have access to a number of trusted and vetted accountants, and property agents that speak multiple languages.  Feel free to get in touch for an introduction with no obligation. 

Q. Do I have to pay the estate agent?
A. Estate agents will get paid by their client – the seller.

Q. Which areas should I consider in Mallorca?
A. Mallorca is a hugely varied island and can offer everything from a busy (comparatively!) city vibe to an almost isolated self-sufficient existence. We recommend paying the island a visit and exploring as well as reaching out to our Facebook community who will happily give you their opinions of places to visit.  Just click

Frequently Asked Questions

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