Buying a property in Mallorca is probably one of the most important economic decisions for both individuals and businesses. That is why you must plan everything carefully from start to finish, and seek advise of trusted professionals who know the local real estate market well. And who above all, can deal with the legal issues that might be part of such transactions. Leaving it in the hands of experienced professionals means less surprises later on, and a watchful eye over the planning and budget so as to keep costs the same as expected.
To keep in Mind when buying a Property in Mallorca
The first step is to carry out a comprehensive check on the property to ensure that it adheres to the building code for the area and that the former owners have not changed it without permission. This is a procedure that you must check with the property’s local council offices.
Furthermore, it is also appropriate to carry out architectural or building maintenance surveys in order to identify any potential issues. This also involves a team led by an architect.
The second step is to check that there is no debt or liability on the property. For example, mortgages, taxes or issues with tenants.
Thirdly, when buying a property in Mallorca, it is necessary to know that in Spain there are different tax rates. They depend on when and under which circumstances the property is acquired. If the house is under construction 21% VAT will apply. If it’s already completed it will be 10%. And if it is second hand the buyer must pay a transfer tax that can range between 8 and 11%.
Written by Francisco Mercadal Alabern of Bufete Mercadal