Mallorca attracts buyers from the United Kingdom, Germany, Scandinavia, the rest of Europe and beyond. Buying property in Mallorca as a foreigner is perfectly possible, and the process is similar to buying property anywhere in Spain, but it follows Spanish rules that may be quite different from those in your own country. This guide explains the main steps and how Inmobiliaria Palma can help you through them, in English, Spanish, French or Russian.
1. Get your NIE
The NIE (Número de Identidad de Extranjero) is the identification number every foreigner needs to buy property in Spain. You will need it to sign the deed, pay taxes, open a bank account and connect utilities. It can be requested in Spain or, in many cases, through a Spanish consulate in your country. Apply early, as it can take some time.
2. Open a Spanish bank account
A Spanish bank account makes the purchase much easier: paying the deposit, paying taxes, and later paying bills, community fees and IBI by direct debit. Non-residents can open a non-resident account. The bank will ask for proof of identity, your NIE and information on the source of the funds.
3. Decide how you will pay
If you need a mortgage, speak to Spanish banks early. Conditions for non-residents are usually stricter than for residents. Having approval in principle before you make an offer puts you in a stronger position and avoids losing a deposit if finance falls through.
4. Choose the area and the property
Mallorca is very varied: city living in Palma, harbour towns in the south-west, mountain villages in the Serra de Tramuntana, beach towns in the north and east, and rural fincas inland. Our area guides describe the main locations and what to look out for in each one. Tell us how you plan to use the property (main home, second home, letting) because the rules differ, especially for holiday rentals.
5. Check the property before you commit
Never pay a deposit before the property has been checked. With legal support, we review:
- The nota simple from the Land Registry: ownership, charges and description.
- That the registry, the cadastre and the reality match.
- Licences and the legal status of all buildings, especially on rural land.
- The cédula de habitabilidad and the energy performance certificate.
- IBI receipts and the community of owners’ certificate of no debts.
- Coastal Law restrictions and, if relevant, holiday rental licences.
More details on our property document and legal check page.
6. Sign the arras contract
When you agree a price, buyer and seller normally sign a contrato de arras and the buyer pays a deposit. The contract sets the price, the completion date and what happens if either side withdraws. With the most common type, if you as the buyer withdraw you lose the deposit; if the seller withdraws, they must return it twice over. Read it carefully, and have it reviewed before signing. If you need a mortgage, consider including a condition for it.
7. Completion at the notary
The purchase is completed by signing the public deed (escritura de compraventa) before a notary. The notary checks identities and the registry status of the property, reads the deed and witnesses the payment. If you do not speak Spanish, the notary must make sure you understand what you sign, so you may need an interpreter. After signing, the deed is presented for tax and registered in your name at the Land Registry.
8. Can’t travel? Use a power of attorney
You do not have to be in Mallorca to buy. You can grant a power of attorney (poder notarial) before a notary in Spain or abroad, so that a trusted person can sign on your behalf. If it is granted outside Spain, it will normally need an apostille and possibly a sworn translation. Make sure it is drafted with the right powers for the purchase and, if needed, for the mortgage.
9. Purchase taxes and costs
- Resale property: transfer tax (Impuesto de Transmisiones Patrimoniales, ITP), set by the Balearic Government on a progressive scale.
- New build from a developer: VAT (IVA) plus stamp duty (Actos Jurídicos Documentados, AJD).
- Other costs: notary, Land Registry, administrative processing and, if there is a mortgage, bank-related costs.
Make sure you budget for these on top of the price. We explain which apply in your case.
10. After the purchase: obligations of non-residents
If you are not tax-resident in Spain, owning a property here still has tax consequences. Non-residents usually file an annual non-resident income tax return for their Spanish property, and declare any rental income. Local taxes such as IBI and the rubbish collection fee must also be paid. When you sell in the future, the buyer will withhold part of the price on account of your capital gains tax.
If you plan to spend long periods in Mallorca, also look into the residence rules that apply to your nationality. Since Brexit, for example, British citizens are subject to the rules for non-EU nationals.
How we help you buy
- We listen to what you need and search across Palma and Mallorca.
- We tell you honestly what we see in each property and its documents.
- We check the documents with legal support before you pay anything.
- We help with the negotiation and the arras contract.
- We coordinate with the notary, the seller and your bank up to completion.
- We work in English, Spanish, French and Russian, in writing, wherever you are.
If you would rather rent first to get to know the island, see our page on long-term rentals in Mallorca.
Frequently asked questions
Can foreigners buy property in Spain without restrictions?
In general, yes. EU and non-EU citizens can buy property in Spain. In some areas classified as of interest for national defence, non-EU buyers need prior military authorisation; we check this when it applies.
Do I need a Spanish lawyer to buy?
It is not compulsory, but independent legal advice is strongly recommended. Our document check is done with legal support.
Can I rent out the property as a holiday let?
Only with the correct tourist registration and licence, and this is heavily restricted in Mallorca, particularly in Palma. Check before you buy, not afterwards.
Tell us what you are looking for
Write to us at info@inmobiliariapalma.es or use the contact form. Tell us what kind of property you want, where, what you plan to use it for and when you would like to buy. We reply in writing, in English, Spanish, French or Russian.