The Purchase Process
The Property Search
The purchase of a house in Mallorca is a straightforward process.We pay close attention to your priorities when searching for your dream home and put together a selection of interesting properties for you.
The Soller Valley and the surrounding Tramuntana Mountains in Mallorca are protected nature sites and are part of the Unesco World Heritage. Therefore, the urban construction possibilities, such as the building of a pool or an extension of the house, are very limited. Depending on the location, the property classifies as urban, rural or rural protected.
We will discuss the possibilities for alterations to a property with you in advance, which can then be certified in writing by an architect.
We believe it is important that you always have all the information at hand to make your decisions.
Reserving A Property
Once we find your dream home, we negotiate the price and all other variables for you (such as the period, furniture, etc.).
After that, a deposit contract or option purchase contract is drawn up in which the agreed terms are reflected and which provides sufficient security and legal guarantees for both parties so that the agreed terms are met. This is a private contract drawn up either by us or by a lawyer of your choice.
The Purchase Transaction
The final step is the signing of a public sales deed at the notary. From this moment on you are the owner of your new home!
On The Buyer's Side:
- Property transfer tax (Impuesto de Transmisión Patrimonial, ITP) is a progressive tax based on the purchase price::
- 8% up to 400.000 €,
- 9% from 401.000 € to 600.000 €,
- 10% from 601.000 € to 1.000.000 €,
- 11.5% from € 1.000.000 of the agreed price.
These ranges will be added.
- Notary- und registry fees: approx. 0.8% of the purchase price.
On The Seller's Side:
- The estate agency fees
- The council's value growth tax, plusvalia municipal, which is calculated on the basis of the land value in the land registry and the number of years since the last transfer.
- There are capital gains taxes for the seller: If one is not a tax resident in Spain and a member of the EU,
the tax rate is 19% of the net capital gain,
if one is not a member of the EU, the tax rate is 24%.
- For tax residents in Spain, the tax authority calculates the tax rate on the basis of the annual income.
Naturally, we are at your side with advice and support at all stages of the purchase process!
The Golden Visa
An important issue mainly for British and non-European buyers is the Golden Visa, which allows you to enter and leave Spain without the need for a residence visa, while maintaining your residency in your country of origin.
The Golden Visa can be obtained by purchasing one or more properties totalling at least €500,000 without financing. This will allow you to enjoy your holiday home for unlimited periods of time!