Guide to Buying a Property in Mallorca as a Foreigner

Mallorca attracts thousands of foreign buyers every year — Germans, British, Scandinavians and Latin Americans looking for a second home or a place to settle permanently. The buying process in Spain has its particularities, but it is safe and accessible if you follow the right steps.

First things first: the NIE

The NIE (Número de Identificación de Extranjero — Foreign Identification Number) is essential for any real estate transaction in Spain. It is issued by the Dirección General de Policía and can be obtained in person at the police station in Palma or through the Spanish consulate in your home country. During peak season, waiting times can exceed four weeks, so it is advisable to apply well in advance.

Bank account in Spain

Banks require that the purchase funds pass through an account held in Spain. Opening one as a non-resident is possible but requires additional documentation: passport, NIE in process and proof of address. Banks such as BBVA or CaixaBank have specific processes for non-residents.

The process step by step

1. Search and offer: once you find the property, a formal offer is submitted. If accepted, a negotiation period begins.
2. Due diligence: your lawyer verifies any encumbrances at the Land Registry, community debts, outstanding IBI and planning status.
3. Arras contract: a preliminary contract with a 10 % deposit. It sets out the conditions and the deadline for the title deed. If the seller withdraws, they must return double the deposit.
4. Financing: if you need a mortgage, Spanish banks finance up to 60–70 % of the appraisal value for non-residents.
5. Public deed (Escritura): signed before a notary. The notary verifies identities, the status of encumbrances and tax settlement.

Additional costs to plan for

The buyer bears the costs of the transaction: ITP (8–11 % of the price for resale properties, depending on the bracket), notary fees, land registry and administrative fees. In total between 10 % and 13 % of the purchase price. For new builds, VAT (10 %) plus AJD (1.5 %) applies.

Do I need a lawyer?

It is not legally required, but it is highly recommended for foreign buyers. An independent lawyer reviews the documentation, identifies hidden issues and represents you throughout the entire process. At Amelia we work with trusted lawyers who can support you from day one.

Frequently asked questions

Can I buy in Mallorca without living in Spain? Yes. Non-residents can purchase freely without restrictions. You only need a NIE and a Spanish bank account.

Are there restrictions for non-European citizens? Generally not for a primary or secondary residence. Certain types of protected rural land may have limitations.

How long does the whole process take? Between 2 and 4 months from signing the arras agreement to the title deed. With financing it may take longer depending on the bank.