Buying a House in Mallorca as a Foreigner: Complete Guide 2025

Buying a property in Mallorca as a non-EU citizen may seem complex, but with the right information and proper advice, it's a perfectly viable process. This comprehensive guide will take you step by step through the entire process, from legal requirements to real costs.

Legal Requirements for Non-EU Citizens

Citizens from countries outside the European Union can buy properties in Spain, but must meet certain specific requirements:

Required Documentation:

• NIE (Foreigner Identification Number): Mandatory for any transaction
• Valid passport: With at least 6 months validity
• Criminal record certificate: From country of origin and Spain
• Economic solvency certificate: Financial statements or bank certificate
• Sworn translation: Of all non-Spanish documents
• Apostille: For documents from countries signatory to the Hague Convention

NIE Application Process:

1. Online application: Through the Ministry of Interior website
2. Appointment: At the Immigration Office or Police Station
3. Documentation: Passport, purchase justification and form
4. Processing time: 15-30 business days
5. Collection: At the same office or by mail

Purchase Process Steps

The purchase process for foreigners follows the same steps as for Spanish citizens, but with some additional considerations:

1. Search and Selection

• Define budget: Include all additional costs
• Choose area: Consider services and connectivity
• In-person visits: Essential to know the property
• Professional advice: Specialized real estate agent

2. Due Diligence and Verifications

• Property verification: Property Registry
• Encumbrance verification: Mortgages, seizures, easements
• Urban planning verification: Licenses and regulations
• Technical inspection: Construction condition

3. Negotiation and Contract

• Purchase offer: Binding document
• Arras contract: Reservation with deposit
• Purchase agreement: Definitive document
• Notarial deed: Formalization before notary

Real Purchase Costs

Purchase costs in Mallorca for foreigners include taxes, fees and professional fees. It's crucial to know all costs before committing:

Practical Cost Example:

For a property of €800,000 in Mallorca:

• Purchase price: €800,000
• ITP (8%): €64,000
• Notary and registry: €1,200
• Management: €500
• Lawyer: €1,500
• Total additional: €67,200
• Final total: €867,200

Financing for Foreigners

Spanish banks can offer financing to non-EU citizens, but with specific conditions:

Banking Requirements:

• NIE mandatory: For any banking operation
• Demonstrable income: Income certificates
• Employment seniority: Minimum 2 years in same job
• Minimum down payment: 30-40% of purchase value
• Life insurance: Mandatory for mortgage

Types of Financing:

• Fixed mortgage: Stable interest rate
• Variable mortgage: Linked to Euribor
• Mixed mortgage: Combination of both
• International financing: Through foreign banks

Tax Considerations

As a foreign property owner in Spain, you must know the tax obligations:

Annual Taxes:

• IBI (Property Tax): 0.4-1.1% of cadastral value
• Income Tax: If you have income in Spain
• Wealth Tax: If you exceed the established threshold
• Inheritance Tax: In case of inheritance

Property Rental:

• Income declaration: Mandatory if you rent
• Tenant withholding: 19% for non-residents
• Model 210: Quarterly declaration
• Tax advice: Recommended for optimization

Recommended Professional Services

For a successful purchase, it's essential to have specialized professionals:

Professional Team:

• Real estate agent: Specialized in foreigners
• Lawyer: Expert in real estate law
• Manager: For administrative procedures
• Sworn translator: For official documents
• Tax advisor: For tax optimization
• Technical architect: For inspections

Common Mistakes to Avoid

Knowing the most frequent mistakes will help you avoid costly problems:

• Not obtaining NIE: It's mandatory for any transaction
• Underestimating costs: Additional expenses can be significant
• Not verifying property: Always check the Property Registry
• Signing without advice: Never sign documents without understanding them
• Not considering taxes: Tax obligations are important
• Choosing area without research: Know services and connectivity

"Buying a property in Mallorca as a foreigner is totally viable with proper preparation. The key is to have specialized professionals and know all costs and requirements from the start."

Conclusion

Buying a house in Mallorca as a non-EU citizen is a perfectly viable process that requires preparation and professional advice. The requirements are clear and the costs predictable if known from the start.