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MALLORCA PROPERTY - BUYING COSTS EXPLAINED

As in any foreign country, the procedure and cost of buying a property in Mallorca is very different to that of the UK (or anywhere else!).  What follows is a simple guide to help you estimate the costs.  Please remember that this is not definitive and we always recommend the use of a fully qualified Mallorcan lawyer to do your property conveyancing (more on that in to come).

When you buy a resale property in Mallorca you must calculate a cost of about 10% of the agreed sales price and on a new property, about 10.5% of the sales price.  We must tell you that this is an estimate as many charges are based on tables and sliding scales which can and do differ between different lawyers, registries and notaries.  These costs include the following:-

Resale Property -

• 7% Property Transfer Tax (paid to the Spanish Tax Authorities)
• 1% to 1.5% Lawyers Fees
• 1% to 1.5% Notary Fees, Registry Fees and Plus Valia*

New Property - 

• 7% VAT (paid to the company that is selling the property)
• 1% Stamp Duty
• 1% to 1.5% Lawyers Fees
• 1% to 1.5% Notary Fees, Registry Fees and Plus Valia*

Where differences may arise are, for example, in cases where you are buying a plot that is owned by a company, the VAT is charged at 16% as it is considered a commercial transaction rather than a property transaction.

What is not included in the above costs is the cost of constituting a mortgage in the case where you are financing the property.  The cost is additional to the above but only applicable in the case that you are taking a mortgage and is estimated at about 3.5% of the loan value.  This details of these costs will be covered in a subsequent email or you can read this information now by visiting the cost of borrowing section on our website.