Property purchase Mallorca
What do you have to look out for when buying a property in Mallorca? The first thing you should take care of is the Spanish tax number, the so-called NIE (Número de Identificación de Extranjero, identification for foreigners). Without this number, it is almost impossible in Mallorca to conclude any contracts, buying a car, purchasing real estate, banking contracts, etc. The NIE number must be requested in Palma in the foreigner’s authority. But you also have the opportunity to hire a “Gestoría”, which does the work for you. In order to acquire a property in Mallorca, it is necessary to have a Spanish bank account, as before the notary appointment a check must be collected.
If you need financing, it is advisable to complete this in Mallorca, as most banks in Germany do not finance a property purchase in Mallorca. It is possible to get up to 70% of the estimated value. We are happy to recommend a suitable financial service provider for you.
In Mallorca, it is not necessary to conclude a reservation and option contract with a notarial certification. However, the final purchase contract should be closed by a notary, since the entry in the land register is advisable, because without there is no “legitimate expectation”.
Reservation contract: the buyer has the possibility to reserve the property for a few days. The seller agrees to keep the property free for a reservation fee. If the buyer decides to purchase the property, the amount paid will be credited to the purchase. If he decides against it, in most cases the seller keeps the amount.
Option contract: similar to the reservation fee, the seller agrees not to sell the desired object to third parties for a certain time, usually about a week to three months. In general, it is 10% of the purchase price, which must be paid in advance, this sum will be credited at the time of purchase. As a rule, the option fee is deposited with a broker, lawyer or notary in an account in trust. If, for some reason, the seller does not want to sell the property, for example, because he was able to sell the property at a higher price, the seller will usually have to pay back the option fee plus additional damages. This depends on the contract agreement.
The notarial purchase contract has a description of the property, the purchase price and the terms of payment. The notarial purchase contract is also very important to make sure that you do not take on any debts (debits) from the previous owner. The notary sends the land registry office the authentication by email or fax, so that legal certainty can be guaranteed. After payment of the real estate tax, the new owner can be entered in the land register.
Private Property Mallorca is of course at your disposal during the entire buying process.