To buy or sell a property on an idyllic island sounds tempting. Whether you are a local resident or a tourist, you should be aware of what requirements are necessary for the buying or selling of a property in Mallorca. The paperwork can sometimes make a swift and simple process become very difficult, but with the right advice you can save a lot of time. At Pollentia Properties, real estate agency in Pollensa, we understand this process perfectly. That is why in this article we want to try and give you the best possible advice so that you can complete the whole process successfully.
In order to successfully buy a property in Mallorca, you must comply with certain requirements. There are three fundamental aspects that make up the required documentation. First and foremost is the National Identity Document (known as D.N.I.), for residents, or the Foreign Identity Number (known as N.I.E.), which is for non-native residents; a Power of Attorney if the buyer cannot be present to sign and the opening of a bank account with a Spanish bank. The latter two aspects apply to both native and foreign buyers.
In regard to the notary or the deeds, there are no major differences between local residents and foreigners. For this purpose, the buyer should present duplicate copies of the deeds, the land registration with the registration costs, the proportional part of the Real Estate Tax, the VAT on the total cost of the purchase of the property in the case of a new build, the Stamp Duty if it is a new build, the Inheritance Tax and the mortgage costs, if applicable. If the buyer is non-native, there will be a retention of 3% of the total cost of the sale and it must be registered in the Tax Office with a 046 Model Form.
If you wish to sell a property in Mallorca, there are certain very important factors to be considered in the process. A National Identity Document, for residents, or a Foreign National Identity Number, for foreign buyers, are necessary. Furthermore, as in the purchase process, a Power of Attorney is necessary if the buyer cannot be present to sign. The Updated Report from the Property Registry, the Property Deeds, the Energy Efficiency Certificate and the Certificate of Occupancy are also necessary. Other key documents to present prior to the notary or Deeds are: the administrative certificate, the Property Tax, up to date payment of the Refuse Collection Tax, the Building Completion Certificate for a new build, the water, electricity and gas connection details for a new build and a Bank Certificate specifying any outstanding debts.
Furthermore, for the notary or deeds the following must be submitted: the capital gains tax on the total cost of the sale of the property, personal income tax if there is any patrimonial profit and the proportional part of the Local Property Tax. If the vendor is a non-native, there will be a 3% retention of the total price of the sale and it must be registered in the Tax Office with the Model Form 046.
So now you know that if you want to successfully buy or sell in Mallorca, follow our advice and prepare everything necessary to make the process simple and speedy. If you have any other queries, don’t hesitate to contact our Real Estate Agency in Pollensa. Pollentia Properties is here to help you with anything you may need.