Check the developer and the land
- Who is the developer, and does it own the plot? Check the Land Registry.
- Is there a mortgage on the plot or the development, and how will it be split or cancelled?
- Is the developer solvent and up to date with its obligations?
Planning permission and project documents
Confirm the building licence, the approved plans and the specifications (memoria de calidades). Make sure what you are sold matches what the licence allows: terraces that become living space, basements used as bedrooms or rooftop pools must be in the approved project. If you plan to rent to tourists, remember that new tourist places in apartment buildings are prohibited across the Balearics.
Protecting stage payments
Under the Building Act (Law 38/1999), developers of homes must guarantee every amount paid before delivery, plus legal interest, through a bank guarantee or surety insurance, and deposit the money in a special account. Each buyer should receive an individual certificate. If the home is not built or delivered on time, you can claim from the guarantor. Read off-plan property guarantees.
| Stage | What to obtain |
|---|---|
| Reservation | Refundable terms; payment covered or held in escrow |
| Private contract | Plans, specifications, schedule, special account |
| Each stage payment | Individual guarantee for the cumulative amount |
| Completion | End of works, occupation documents, structural insurance |
Completion, licences and snagging
Before completion, inspect the home with a technician and list defects (snagging). The developer should deliver the end-of-works certificate, the documents needed for occupation and utility contracts, the horizontal division and the ten-year insurance policy. Agree in writing how and when defects will be fixed, and consider retaining part of the price.
Tax, community and aftercare
New builds pay VAT and stamp duty rather than transfer tax: see purchase costs and taxes. The community of owners is set up at the start, so review the statutes and initial budget. After delivery, the Building Act gives warranty periods of one, three and ten years for different defects. Our team acts for buyers throughout Mallorca; for other legal matters in English, see Castell.law.
Before you pay a deposit, ask a lawyer
Send us the listing or the document you have been asked to sign. An English-speaking property lawyer will tell you what needs checking and what it could cost you not to.
Frequently asked questions
Are off-plan payments safe in Mallorca?
They are protected by law if each payment is guaranteed and paid into the special account. Check the guarantees before paying.
What if the developer is late?
If the delay exceeds the agreed date and any valid extension, you can usually terminate and claim refund plus interest from the guarantor.
Do I pay VAT on a new build?
Yes, plus stamp duty, when buying from a developer.
Who fixes defects after completion?
The developer and builder, within the legal warranty periods; structural defects are insured for ten years.