Buying Property in Mallorca: The Complete Checklist for British Buyers

Buying a property in Spain as a British citizen is perfectly straightforward — but it involves steps, terminology, and legal concepts that do not exist in the English system. Post-Brexit, there are additional considerations around residency, tax status, and the 90/180-day rule. This guide walks you through every stage of the process, from obtaining your NIE to collecting the keys, with the specific details that British buyers need to know.

Before You Start: Post-Brexit Realities

Since 1 January 2021, British citizens are treated as third-country nationals (non-EU) for all purposes in Spain. This has several practical consequences for property buyers:

• The 90/180-day rule: You may spend a maximum of 90 days in any 180-day period in the Schengen Area (which includes Spain) without a visa. If you want to spend more time at your Mallorca property, you will need a residence visa.
• No automatic right to work or reside: Owning property does not grant you the right to live in Spain. For extended stays, you will need a non-lucrative visa, digital nomad visa, or another residence permit.
• Tax treatment: UK residents are treated as non-EU for Spanish tax purposes. This means a 24% tax rate on rental income (vs 19% for EU residents) with no deduction for expenses, and 24% on imputed income for non-rented properties.
• Spain’s Golden Visa: Discontinued for new real estate applications since April 2025. Property investment no longer provides a route to residency.
• No change to buying rights: There are no restrictions on British citizens purchasing property in Spain. The buying process itself is the same as for EU nationals.

None of these changes prevent you from buying in Mallorca — they simply mean you need to plan more carefully around residency and tax.

Step 1: Obtain Your NIE (Número de Identidad de Extranjero)

The NIE is a foreigner’s identification number, and you cannot buy property in Spain without one. It is used for all official transactions: property purchase, opening a bank account, paying taxes, signing contracts, and connecting utilities.

How to Get Your NIE

You have two main options:

• In Spain: Apply in person at the Oficina de Extranjería (Foreigners’ Office) in Palma or at a National Police station that handles NIE applications. You need your passport, the completed EX-15 form, proof of reason for requesting the NIE (a preliminary purchase contract or a letter from your lawyer suffices), and the Modelo 790 Código 012 tax form with the fee paid (~€12). Appointments can be booked online through the Sede Electrónica system, though getting an appointment quickly can be challenging during busy periods.
• In the UK: Apply at the Spanish Consulate in London, Edinburgh, or Manchester. The process is slower (4–8 weeks) but avoids the need to travel to Spain beforehand.
• Through a representative: Your Spanish lawyer or gestoría can obtain the NIE on your behalf using a power of attorney (poder notarial). This is the most convenient option and costs €100–€200 in professional fees on top of the government fee. For more detail, see our complete NIE guide.

Tip: Apply for your NIE early — ideally before you start seriously viewing properties. It can take 2–6 weeks to obtain, and you will need it for everything that follows.

Step 2: Open a Spanish Bank Account

While not strictly mandatory, a Spanish bank account is practically essential for buying property in Mallorca. You will need it to:

• Pay the deposit and purchase price (Spanish banks handle the funds transfer at the notary)
• Set up direct debits for property taxes (IBI), community fees, utilities, and insurance
• Receive rental income if you plan to let the property
• Pay your annual non-resident tax

Which Bank?

The main Spanish banks with branches across Mallorca include CaixaBank, BBVA, Banco Santander, Banco Sabadell, and Bankinter. For non-resident buyers, CaixaBank and Sabadell are generally the most accommodating. Some banks have dedicated non-resident departments.

What You Need to Open an Account

• Valid passport
• NIE (or proof of NIE application)
• Proof of address in the UK (utility bill, bank statement)
• Proof of income or employment (some banks require this for non-residents)
• Tax identification number from your home country (your UK National Insurance number or UTR)

Some banks allow you to open an account remotely; others require an in-person visit. Your lawyer can often facilitate the process.

Step 3: Appoint an Independent Lawyer

This is arguably the most important step in the entire process. Spanish property law differs significantly from English law, and there is no equivalent of the English conveyancing solicitor or the Land Registry system that English buyers take for granted. A good property lawyer will protect your interests at every stage.

What Your Lawyer Should Do

• Conduct full legal due diligence on the property (see Step 6 below)
• Verify the seller’s identity and right to sell
• Review and negotiate all contracts
• Coordinate with the notary
• Handle your NIE application (if delegated)
• Ensure all taxes are paid correctly
• Set up post-completion arrangements (direct debits, tax representation)
• Advise on residency, tax planning, and inheritance implications

How to Choose

• Independence is non-negotiable. Your lawyer must be independent of the estate agent and the seller. Never use a lawyer recommended by the seller’s agent without satisfying yourself of their independence.
• Bilingual capability. You need a lawyer who speaks fluent English and Spanish, and who understands both the Spanish legal system and the concerns of British buyers.
• Specialist in property law. Spain has many excellent lawyers, but property conveyancing is a specialisation. Check that your lawyer regularly handles property transactions in the Balearic Islands.
• Agree fees in writing before instructing them. Typical cost: 1% of the purchase price, with a minimum of €1,500–€2,500.

Step 4: Property Search

With your NIE in process, bank account open, and lawyer instructed, you can begin your property search in earnest. A few Mallorca-specific points:

Working with Estate Agents

In Spain, the estate agent’s commission is almost always paid by the seller, not the buyer. This means you can work with multiple agents at no direct cost. However, be aware that many properties are listed with several agents simultaneously (multi-listing is common in Mallorca), so you may see the same property at different prices from different agents.

Private Sellers

Some properties, particularly in the lower price range, are sold directly by owners through portals like Idealista, Fotocasa, Milanuncios, and Wallapop. Buying from a private seller can save you negotiating leverage (no agent’s commission inflating the price), but your lawyer’s role becomes even more important as there is no agent to mediate.

What to Consider

• Location and municipality: Different areas of Mallorca suit different needs. Research the municipality, its services, and its specific regulations (particularly regarding tourist rental licences).
• Access: Some rural properties in the Tramuntana have challenging access roads. Visit in winter, not just summer, to see the property under less favourable conditions.
• Building legality: Mallorca has a history of irregular construction — extensions, pools, and even entire properties built without proper planning permission. This is a critical issue that your lawyer must investigate thoroughly.
• Community fees: For apartments and developments, check the monthly fees and the community’s financial health before making an offer.
• Orientation and climate: South-facing properties get year-round sun (desirable in winter, hot in summer). North-facing properties are cooler but may be damp in winter. Cross-ventilation is valuable in summer.

Step 5: Make an Offer and Pay a Reservation Deposit

When you find the right property, the process typically begins with an offer, followed by a reservation deposit:

The Offer

Offers are usually made verbally through the estate agent or directly to the seller, then confirmed in writing. There is no equivalent of the English “sealed bid” or “best and final offer” system. Negotiation is expected — the asking price is rarely the final price, particularly in the current market.

Reservation Deposit (Reserva)

Once an offer is accepted, the seller or agent may ask for a small reservation deposit — typically €3,000 to €10,000 — to take the property off the market while contracts are prepared. This deposit is usually deducted from the final purchase price.

Important: The legal status of a reservation deposit varies. In some cases, it is refundable if the sale does not proceed; in others, it is not. Never pay a reservation deposit without your lawyer reviewing the terms first. Your lawyer should ensure that the deposit is held in a client account (not the agent’s personal account) and that the conditions for refund are clearly stated.

Step 6: Due Diligence

This is where your lawyer earns their fee. Thorough due diligence is essential and should cover the following:

Nota Simple (Land Registry Extract)

The nota simple is obtained from the Registro de la Propiedad (Land Registry) and is the single most important document in the transaction. It confirms:

• The legal owner of the property
• The description and boundaries of the property
• Any charges, mortgages, or embargos (encumbrances) registered against the property
• Any easements or rights of way
• The property’s registration reference (finca registral)

The property must be free of all debts and charges at the time of sale (or the debts must be settled from the sale proceeds at the notary).

Catastro (Cadastral Registry)

The Catastro is Spain’s cadastral registry — a separate system from the Land Registry that records the physical characteristics of every property: location, boundaries, built area, plot size, and the valor catastral (cadastral value, used to calculate property taxes). Your lawyer should check that the cadastral description matches the reality on the ground. Discrepancies between the Catastro and the Land Registry are common in Mallorca and must be resolved before completion.

Planning and Building Legality

Your lawyer should verify:

• Building licence (licencia de obra): Was the property (and any extensions or modifications) built with proper planning permission?
• Certificate of occupancy / habitability certificate (cédula de habitabilidad): Does the property have a current habitability certificate?
• Urban planning classification (clasificación urbanística): Is the land classified as urban, developable, or rural (rústico)? This affects what can be built and what uses are permitted.
• AFO (asimilado a fuera de ordenación): Some older constructions that were built without permission but have existed for many years may be regularised under this status. It does not mean the construction is legal — it means it is tolerated and cannot be demolished, but it may have restrictions on future modifications. Your lawyer must explain the implications.

Debts Check

Your lawyer should verify that the seller is up to date with:

• IBI (property tax): Obtain a certificate from the ayuntamiento confirming no outstanding IBI debts. Unpaid IBI can become a charge on the property.
• Community fees: Obtain a certificate from the community administrator confirming the seller is current on all fees and that there are no pending derramas (special levies).
• Utility bills: Water, electricity, and gas should be paid up. Unpaid water bills in particular can become a charge on the property in some municipalities.
• Plusvalía municipal: The seller is responsible for paying this local capital gains tax. Your lawyer should ensure it is paid or retained from the proceeds.

Energy Certificate

The seller must provide a valid energy performance certificate. Your lawyer should verify it is registered with the Balearic Government and still within its 10-year validity.

Step 7: Sign the Contrato de Arras (Deposit Contract)

The contrato de arras is the binding private contract between buyer and seller. It sets out the terms of the sale and is signed before the final notary deed. This is the most important contract in the process.

Key Terms

• Purchase price and payment structure
• Deposit amount: Typically 10% of the purchase price. This is the arras penitenciales deposit, which has specific legal consequences (see below).
• Completion date: The date by which the escritura (public deed) must be signed at the notary. Usually 4–12 weeks after the arras.
• Conditions: Any conditions that must be met before completion (e.g., mortgage approval, resolution of legal issues, seller vacating the property).
• Inventory: What is included in the sale (furniture, appliances, fixtures and fittings).

The Arras Deposit: What Happens If Someone Pulls Out?

Under the standard arras penitenciales (Article 1454 of the Spanish Civil Code):

• If the buyer pulls out: You lose the deposit (the full 10%).
• If the seller pulls out: They must return double the deposit to you (i.e., 20% of the purchase price).

This is a powerful mechanism that discourages either party from withdrawing. Your lawyer should ensure the contract clearly specifies the type of arras and the consequences of withdrawal.

Important for mortgage buyers: If you are financing the purchase with a mortgage, include a clause making the arras conditional on mortgage approval. Without this clause, if your mortgage is refused, you lose your 10% deposit.

Step 8: Arrange Finance and Currency Transfer

Between signing the arras and completion, you need to have your funds in place:

If Paying Cash

Transfer the full purchase price (minus the arras already paid) plus all buying costs to your Spanish bank account. Use a specialist currency broker (not your UK bank) to convert GBP to EUR — the difference can save you thousands. Consider a forward contract to lock in the exchange rate.

If Taking a Mortgage

Your mortgage should be formally approved and the bank valuation (tasación) completed before the notary date. Spanish banks typically lend 60–70% of the lower of the purchase price or valuation to non-resident buyers. You will need to have the remaining 30–40% deposit plus all buying costs (€12–14% of the purchase price) in cash. See our free mortgage comparison for current rates and conditions.

Step 9: Sign the Escritura (Public Deed) at the Notary

The escritura de compraventa is the public deed of sale, signed before a Spanish notary (notario). This is the moment of completion — equivalent to exchange and completion happening simultaneously in English law.

What Happens at the Notary

1. The notary reads the deed aloud in Spanish (a translator must be present if you do not speak Spanish).
2. The buyer and seller (or their authorised representatives) sign the deed.
3. The buyer pays the remaining purchase price, typically by bank cheque (cheque bancario) or bank transfer.
4. If there is a mortgage, the bank’s representative is present, and the mortgage deed is signed immediately after the purchase deed.
5. The notary verifies that a 3% retention has been made (see below) if the seller is a non-resident.
6. The keys are handed over.

The 3% Retention

If the seller is a non-resident of Spain (which includes most foreign owners selling holiday homes), the buyer must withhold 3% of the purchase price and pay it directly to the Spanish tax authority (Agencia Tributaria) on behalf of the seller. This is an advance payment towards the seller’s capital gains tax. If the seller’s actual tax liability is less than 3%, they can claim a refund. This retention is handled by your lawyer.

Power of Attorney

If you cannot be present at the notary in person (which is perfectly common for international buyers), you can grant a power of attorney (poder notarial) to your lawyer to sign on your behalf. This must be notarised and, if executed in the UK, apostilled with a Hague Apostille. Your lawyer will arrange this.

Step 10: Post-Completion

After the signing, there are several administrative steps to complete:

Pay Transfer Tax (ITP)

The transfer tax (Impuesto de Transmisiones Patrimoniales) must be paid within 30 days of signing the escritura. In the Balearic Islands, this is 8–13% on a progressive scale for resale properties, or 10% IVA + 1.5% AJD for new builds. Your lawyer or gestoría handles this. See our full cost breakdown for the current rates.

Register at the Land Registry

The new deed must be registered at the Registro de la Propiedad to officially transfer ownership. This typically takes 2–4 weeks and is handled by your lawyer. Until registration is complete, the sale is valid between buyer and seller but not enforceable against third parties.

Update the Catastro

Notify the Catastro of the change of ownership. This is usually done automatically by the notary, but verify with your lawyer that it has been processed.

Set Up Direct Debits

Arrange direct debits from your Spanish bank account for:

• IBI (annual property tax)
• Community fees (if applicable)
• Electricity, water, and gas
• Home insurance
• Rubbish collection (basura) — a separate charge in some municipalities

Appoint a Fiscal Representative

As a non-resident property owner in Spain, you must file an annual non-resident tax return (Model 210). Many non-residents appoint a fiscal representative — typically their lawyer or a gestoría — to handle this. The cost is typically €100–€300 per year.

Make a Spanish Will

If you own property in Spain, you should make a Spanish will (testamento) covering your Spanish assets. This is separate from your English will (which should be updated to exclude Spanish assets to avoid conflict). Spanish succession law differs from English law, and without a Spanish will, the inheritance process becomes significantly more complicated and expensive for your heirs. A Spanish will costs approximately €150–€300 at a notary.

The Complete Checklist

Here is the full process in summary:

Step	Action	Typical Timeline
1	Obtain NIE	2–6 weeks
2	Open Spanish bank account	1–2 weeks
3	Appoint independent lawyer	Immediately
4	Property search and viewings	Variable
5	Make offer & pay reservation deposit	1–3 days
6	Lawyer conducts due diligence (nota simple, catastro, debts, planning)	1–3 weeks
7	Sign contrato de arras & pay 10% deposit	1–2 weeks after due diligence
8	Arrange finance / currency transfer / mortgage	2–8 weeks
9	Sign escritura at notary & pay balance	4–12 weeks after arras
10	Pay ITP, register at Land Registry, set up direct debits, make Spanish will	1–4 weeks after completion

Total timeline from offer to keys: Typically 6–16 weeks for a straightforward cash purchase, or 10–20 weeks if arranging a mortgage.

Common Pitfalls for British Buyers

A few traps that catch British buyers in Mallorca with uncomfortable regularity:

• Assuming English conveyancing rules apply. There is no “exchange of contracts” followed by a separate completion in Spain. The arras is binding, and the escritura is completion. There is no cooling-off period after signing the arras.
• Using the seller’s lawyer. In Spain, it is common for sellers to suggest “their” lawyer to speed things up. Do not accept. Your lawyer works exclusively for you.
• Ignoring building legality. That charming extended terrace, the converted garage, or the swimming pool may not have planning permission. Illegal constructions can result in demolition orders, fines, and an inability to sell.
• Underestimating total costs. Budget 12–14% on top of the purchase price for all transaction costs. British buyers accustomed to lower stamp duty often underestimate Spanish buying costs.
• Not making a Spanish will. Without one, your heirs face a lengthy, expensive, and stressful process to inherit your Spanish property.
• Currency conversion at the bank. Using your UK high street bank to convert pounds to euros can cost you 2–4% of the total amount. On a €400,000 purchase, that is £7,000–£14,000 wasted.

Final Thoughts

Buying property in Mallorca as a British buyer is a well-trodden path. Thousands of British nationals own property on the island, and the professional infrastructure (bilingual lawyers, experienced agents, specialist mortgage brokers) is excellent. The process is different from buying in England, but with a good lawyer, proper due diligence, and realistic budgeting, it is entirely manageable.

The key is preparation. Get your NIE early, appoint your lawyer before you start viewing, understand the costs, and never sign anything without legal advice. Mallorca is a wonderful place to own property — and with the right preparation, the buying process can be smooth and stress-free.