Buy an apartment in Mallorca

​Sun, beach and sea and the best around the year – who doesn't dream of a real estate in Mallorca? More and more people are choosing to put this desire into practice and look around for a small flat or even larger property on the sunny island.

However, since this is an important decision for most people and, above all, large investments, there are some things to consider when buying a property in Mallorca. For example, what about the correct selection of objects and what taxes or acquisition costs are to be reckoned with and what do you have to pay attention to when designing the contract?

All this and much more can be found in this guide about "buying a condo in Mallorca".

​It happens again and again that people have a wonderful time in Mallorca and spontaneously decide to buy a property. A sales contract is signed quickly and the real consequences of this decision are based on the

You should avoid this error unveil. Prefer to go strategically in search of a property and let yourself be calm enough time. In this way, the dream will ultimately not develop into a nightmare. For one thing is certain: buying a condo in Mallorca is in most cases not a very cheap pleasure and should therefore be well thought out.

So start your search for your perfect holiday apartment in Mallorca first by looking at the Internet to find out which real estate agents or real estate companies are working seriously and with high customer satisfaction. Furthermore, it is now time to consider how your dream apartment should look like and which points it must meet absolutely. The following points should not be ignored in your first research on the way to your possible home in Mallorca:
 

​1. Get an overview of the current housing offer and the specific characteristics of each region. Where would you like to stay and which cities or places do you not qualify for?
2. What is the budget that is available to you and what size of apartment or real estate can you expect for your existing capital?
3. What are the weather conditions in the region you prefer and can also convince the infrastructure? Naturally, your individual requirements play the most important role. Do you want to stay calm or rural and would you like to take a longer journey time to the sea or is it important for you to be in the middle of the tumult and to go for dinner or party?

Once you have thought about all these points and found out what you really want, it is time to focus on finding the right property in Mallorca. Of course, this is only an approximate idea, which is most likely changed slightly after the first visits to the island. This is mainly because you will probably only become acquainted with the idea of what it really is to live in Mallorca.

​Once you are aware of what kind of property you would like to buy in Mallorca, whether it is a apartment or a classic apartment, and where it is best, the next step is usually not far. It will be time to look for the perfect home on the island and make sure you are on the island.

​Of course, you can also hire a real estate company from Germany to find something for you, but it is much more advisable to take a picture of the different regions and perhaps even spend some time there to really Find out where you feel at home. In this way it is also possible to find out for yourself how the infrastructure really is and to get a real impression of the area.

Even if you have already made a holiday in a certain area, it can show up at once from a completely different side, if you decide to stay there from now on permanently or spend a few months of the year there.

If you do not have the time to really stay in Mallorca for a while and get a good picture of the different regions, it is still better to do intensive research on the spot at least for one week.

​ So you can also be well informed and minimize the likelihood that you will regret buying a home a short time later. Above all, it is important not to lose sight of the purpose of your visit to the Sun Island and to explore the immobiles, but rather to stay on the beach all day.


At this stage of your research, you should not be afraid to contact some real estate agents and inform yourself about the different offers in your price category. Real estate agents in Mallorca understand their craft and are usually very interested in contacting potential prospective customers and making sure to find suitable purchase objects.

​Take a walk through one or the other brokerage office and get an overview of the respective offer. In this way, you will also find out very quickly whether your individual ideas and demands on a property can be reconciled with your investment capital, or you may have to take a little more money in your hand or for a somewhat Need to decide on a smaller home.

​On the Internet you will find an answer to almost every question. It is also the perfect place to get in touch with other homeowners in Mallorca who have also taken the step to buy a property from Germany. In this way you can find out which mistakes others have made and also get the one or the other tip to avoid them or to go even more effectively in the search for the right property.

On the websites of the real estate companies it is also possible to make a first overview of the purchase offer and also to filter out, in which areas are just a lot of properties for sale and where there is rather a housing shortage, which the purchase price usually in The height increases.

• The classic daily newspapers
 

​If you also think about whether the broker you choose is acting according to your interests and thus increases the likelihood that you can find your perfect home on the island, you should pay attention to the following points:

• The broker should have a serious appearance and convince you with sufficient knowledge about the local mobile market.

​• Professional experience as well as knowledge about buying and real estate law in Mallorca should not be a commodity.

• Any inquiries about a property should be able to answer quickly and professionally without hesitation.

• Your individual wishes and demands on a property have to be in the foreground right from the start and you should not feel that the broker really wants to convince you of a special object, although it does not really suit you.

• The broker must never lose sight of your budget and only show you apartments that really fall into your price category.

• Your partner in finding an apartment is trying to give you all the important facts about the potential new home and you do not feel that he is a little hidden from you.

• After you have visited your potential new home, you will receive a brief exposé from a well-prepared and professionally working broker with the most important facts about the property. So you can read through everything in peace and think about whether it is for you or not.

• During the time of reflection, a good real estate agent will never put you under pressure and still be at your side with advice and action. Of course, the real estate market in Mallorca is highly competitive, but you should take sufficient time for this important decision and the real estate agent should be interested that you are really completely convinced of your new home.


In addition, do not be afraid to investigate on the Internet what experiences other buyers on the island have already made with the one or other broker or with a real estate agency. In this way you will surely find many trustworthy names that can help you in finding your dream apartment in Mallorca.

​If after some time you have envisaged a few real estates that can be considered as a new home in Mallorca for you, the first viewing dates are usually already a short time later.

With these you should try to get as much information as possible about the living object. Of course, emotions also play a role in the choice of a new home, but it is important to keep a cool head. You need all the important facts about your potential new residential property to find out if the investment is really worthwhile.

If you feel good after your first visit to a property and you can imagine acquiring it, then speak from now on to a so-called target object. Now to sign the purchase contract immediately would be imprudent and associated with a high risk. Even if you have looked so thoroughly, the second visit to the House will definitely make you notice things that you simply missed the first time. For this reason it is advisable to visit the property again on a different day and at a different time. So you can make a better picture of the lighting conditions.

Of course, it can happen that you fall in love with an object very quickly and you may even be sure you have found just the right thing. If that is the case, then it will now be time for a so-called risk check. This is when you are serious about buying a particular apartment or other property in Mallorca and starting to negotiate with the seller. In such a review are both a lawyer, an appraiser as well as the brand HRes Trust on the spot. The following points should be addressed and examined in the event of a risk assessment:

​• The state of the property

A professionally working building surveyor will walk you through the entire residential object step by step and examine the supporting walls for cracks and other signs of damaged components. In addition, the structure is controlled. In this way you can quickly get a picture of how much money you have to put into any renovation work and whether these extra costs are really worthwhile. Damaged walls can usually be corrected very easily, while for example a damaged roof is usually associated with larger repair measures.

• Mildew and moisture

Living by the sea brings many advantages, but the moisture in the houses that leads to mold does not belong to it. Therefore, the apartment to be bought should be examined for existing mould stains and/or moist areas in the foundation. Can they be rectified or the leaks corrected by better insulation or is the extent so great that this will not help?

• Termite Infestation

​Another important point to be addressed in the case of a risk assessment of a property is the presence of wood worms or other termites. These are usually not recognizable at first sight, but they wreak havoc, which means that housing security is severely affected. If a termite infestation is identifiable, it is important to include a pest fighter in the assessment. The expert will be able to tell you exactly how far the damage has progressed and how much it will cost to remove the annoying critters. In addition, you will be informed by the appraiser how much the cost of the repairs will be.

​Since the tax system in Mallorca can be quite complicated when buying a residential property, we would like to give you a small overview of the costs you will have to pay.

If you wish to purchase a new building that has not been owned by a private person before, you must pay the VAT, the so-called Impuesto sobre el valor añadido (AJD). This is currently 10% of the purchase price of a residential property in Mallorca.
If, on the other hand, you have opted for an apartment that is already sold by a private individual, then the property purchase tax (Impuesto sobre transmisiones Patrimoniales – ITP) is due. This is paid by the buyer and is about 7%. For the Balearic Islands, however, there is a staggered system by which the tax level can be determined.

In addition, a so-called notarisation tax (stamp tax) has to be paid and it is the tax for the certification of the legal transactions. This is on average one percent of the respective purchase price.

There is also a municipal value added tax (Plusvalía), which must actually be paid by the seller of the property. However, if this is not the case and the seller refuses to return the tax, then you are liable as buyer. Therefore, make sure that the value added tax is paid by the seller within 30 days of the sales closing. To make sure that this is also the case, it may be advisable to withhold the sum of the tax amount from the agreed selling price.

​• Notary Costs

Usually the notary costs in Spain are paid by the buyer himself and according to the purchase price the notary fees are on average one percent.

• The Land Register entries

The costs incurred for the land register entry of your newly acquired property are also borne by the buyer himself and therefore by you. On average, this fee is also about one percent of the purchase price.

• Attorneys ' fees

If you want to purchase a property in Mallorca, you must have a good lawyer for the purchase process. This will not only advise you when negotiating the purchase price, but also support you with all administrative and legal issues and set up the necessary contracts. The Abogado, as the lawyer is called in Spanish, will of course also receive a fee for their service, with many lawyers setting a lump sum of one percent of the purchase price. But attention, highly sought-after lawyers now even demand 1.5%.


• The brokerage fee

In Spain it is common for the seller to pay the brokerage fee as well as its commission, and thus no further financial burden for the buyer of the property. However, you should already discuss this issue with the potential seller of the property in advance. You must also bear the costs yourself if you have hired a real estate search agency to find the right residential property for you.

 

​If you have chosen a property that you would like to purchase definitively, a number of other contracts will be applied in addition to the classic sales contract, the so-called Escritura. It is important that there is a clear identification of the various negotiating parties on all forms of contract and that the object to be sold is also precisely described. In addition, you should already find the fixed selling price on the contracts in order to be able to be sure. You will meet the following contractual forms when purchasing a residential property:

• The Reservation Agreement

A so-called reservation contract, also called an option contract, ensures that a special property cannot be snapped up to your nose in Mallorca. If you have a real buying interest in an apartment, you must assure the owner that you can decide for or against the property within a very short time. The seller, on the other hand, undertakes not to sell the property to anyone else.

• A private written contract

Unlike in Germany, it is not necessary in Spain to have real estate contracts certified by a notary public so that they are valid. This is also the reason why a private contract of sale is already valid if it has been pronounced or recorded either in writing or even possible. However, this only applies if a deposit of the purchase price is made in the amount of 10%.

• The notarized purchase agreement

Finally, the actual sales contract follows. As already mentioned, this is known in Spain under the name Escritura and it is the notarized purchase contract. Only if you can prove it, you are the owner of the property and can be officially registered in the Spanish land register.

Once you have this purchase agreement in hand, the search has finally ended and you are the proud owner of a property in Mallorca.