The process of buying property in Mallorca

You want to buy a mallorca luxury property? But you do not know where to start, what to pay attention to when choosing an object or are afraid of tricks when making a deal? We will help you to understand the rules of buying real estate, and with the help of our experts you will find the home of your dreams in one of the most attractive islands in the world.

Searching for a property

You can search for a villa or apartment in Mallorca by yourself on the Internet pages, but to ensure that this process does not take too long, we advise you to contact the real estate sales professionals living directly in the area where you plan to buy a home. They have a better knowledge of the specifics and culture of business relations with Spanish and Mallorcan partners and, taking into account local conditions and traditions, will help you choose the best property option, according to price and quality. 

What to look out for:

  • whether the property sales organisation with which you have decided to close the deal is officially registered with the local municipal authorities;
  • whether the consultant shows you a sufficiently wide range of properties of your choice.
  • whether you have comprehensive information about the property, taking into account its advantages and disadvantages. 

You can trust the company if it offers its services not only in search of the object of purchase, but also assistance in the preparation of documents and support to the bank, to the notary, etc. This means that this organization assumes responsibility for the transaction from the beginning to its completion.

Methods of financing

When paying for a home, there are usually two options. The first is by cash or transfer of funds from your home country to one of the banks in Spain or Mallorca. The second option – a loan through a Spanish bank, to arrange a mortgage loan is not very difficult. In the mortgage you can get up to 70% of the loan from the actual cost of housing, with installments for 15-30 years, and the current interest rate of about 2.5%-3%. Moreover, when buying a home from the developer, construction companies themselves offer future owners already proven and quite profitable financial scheme of phased financing of real estate. 

What do we pay attention to

To obtain a mortgage loan you need to have a notarized certificate from your bank, place of work (copy of the employment contract) and tax authorities. Drawing up documents for a loan in a Spanish bank is not complicated by bureaucratic procedures and takes no more than two weeks.

The negotiation process 

And now the desired object has been found. After agreeing on the price and all additional costs, you confirm your wish to purchase it and thus enter into the process of negotiating financial terms.

We will consider it step by step:

  1. To reserve / reserve for yourself the property you have chosen, you deposit 1% of the value of the object. This allows your lawyer to check the documents for the property you are buying within 2 weeks and draw up a preliminary contract with the seller.
  2. With the help of your lawyer, you check the reliability of the transaction: whether the seller really owns the property; whether the property of your choice is legal, exempt from debt or other legal obligations; whether the relevant documentation for your future property is in order; etc.
  3. You then sign a preliminary sales contract and pay the full amount of the deposit of 10% of the value of the property. 
  4. While your lawyer checks the documentation, you get the NIE (numero de identification de extranjeros) – the identification number of the foreigner to buy a property abroad and open an account in a Spanish bank.
© DMCASENDER. All rights reserved