The Essential Steps Prior To Purchasing A Property In Mallorca 

So, you've chosen to go for it. You're buying a house in the Mediterranean, but not just any house. You're buying a house on the beautiful island of Mallorca.

If you want to settle near the coast, the ports of Puerto Pollensa, Port Andratx, and Port Sóller offer a high-end lifestyle with beautiful views and a mix of people from all over the world.

Or you might be moving to Palma because you fell in love with the Old Town and its old buildings and cobblestone streets.

But before you sign the papers and move into your new home, you'll need to sort a few things out first. Especially if you're coming from another country and don't know much about Spanish law, you'll have to jump through a few hoops.

#1 Acquire Your NIE

The NIE is your all-purpose identification and tax number. You must acquire one before you sign the purchase agreement.

In fact, you'll need an NIE for almost any big deal, including if you plan to live in Spain for more than 90 days a year.

You can apply for it in person in Spain, through a Spanish consulate outside of Spain, or through an agent in Spain. Even getting an appointment can take a while, and appointments are often for weeks or even months away, so make sure you give yourself enough time. Using an agency can speed up the process and make it less stressful, but they are likely to charge anywhere between 100-200 Euros.

If you'd rather do it yourself, you'll need to fill out two forms: the EX-15 application form and the 790-012 form. Before your meeting, you'll need to pay the processing fee at a bank. Bring these with you to your meeting, along with a photocopy of your passport or national ID card. If you've done everything right, you'll get an award along with your NIE.

If you don't know any Spanish, it would be best to take someone with you who does.

#2 Open A Bank Account

Both non-residents and residents of Spain can open Spanish bank accounts, but resident accounts tend to be more flexible and offer better deals.

But if you don't plan to live here forever, a non-res bank account will make more sense. Most of the time, all you need is your passport, a proof of address, and a paper that shows you are working. If you plan to stay here, you should get a local account, which also needs proof that you live here.

There are about six banks to choose from, and most of them give about the same products and services. BBVA stands out because it has a fee-free account, which is surprisingly rare in Spain, as well as great online services in English. La Caixa has perks for non-residents, like a free phone service with an interpreter and free legal help. Sabadell, on the other hand, has an account that lets you make free transfers in the EU (up to €50,000).

Banking in Spain is more expensive than in most other EU countries, so be careful when picking a bank because many of them charge fees.

#3 Hire A Good Lawyer

Buying a property on Mallorca can be a minefield. Hiring a good lawyer is essential if you want to get through the property purchase process smoothly. They can help you protect your investment and make sure you know about any tax implications.

Communication is very important, so make sure to find someone who can speak both your original language and Spanish. Catalan can also be helpful.

Your lawyer should be at the centre of making sure everything goes smoothly. They should make sure there are no legal issues with the property, help with the necessary paperwork, and talk directly with your bank. Most lawyers charge 1%-1.5% (plus IVA) of the purchase price of the property land as fees.

Your lawyer should be at the centre of making sure everything goes smoothly. They should make sure there are no legal issues with the property, help with the necessary paperwork, and talk directly with your bank. Most lawyers charge 1%-1.5% (plus IVA) of the purchase price of the property land as fees.

Make sure your lawyer is independently recommended. It is not advisable to appoint a lawyer that has been referred by a real estate agent or developer.

#4 Arranging A Mortgage

If you want a mortgage, you could ask your bank, but it would be more sensible to use a respected mortgage broker. They will look at your case, talk to multiple lenders, and find the best deals for you. Most of the time, broker fees are about 1% of the mortgage amount (plus IVA).

Residents can usually borrow up to 80% of the property's estimated value, while non-residents can only borrow between 60% and 70%. Most mortgages in Spain have varying rates that are based on the European interbank offered rate (Euribor) plus a margin but fixed rates are available as well.