Frequently asked questions about property law in the Balearic Islands
The questions international clients ask us most often, answered by our property lawyers. They are general answers: the details of each property and each buyer matter.
Buying a property
Do I need a lawyer to buy property in Mallorca, Ibiza or Menorca?
It is not compulsory, but the estate agent works for the seller and the notary is neutral. Only your own lawyer checks title, debts, licences and planning for you and drafts the contract around your risks.
Read more: Why an independent property lawyer protects your purchase
Should I pay a reservation fee before my lawyer has checked the property?
No. Ask for the Land Registry extract and the reservation document first, and make sure the fee is refundable if the legal checks are not satisfactory.
Read more: Reservation and arras contracts
How long does a purchase take?
A straightforward resale usually takes six to ten weeks from reservation to completion. Rural properties, inherited properties and purchases with a mortgage can take longer.
Read more: Buying property in Mallorca: legal guide
Can I buy without travelling to Spain?
Yes. With an NIE and a specific power of attorney signed in your country, your lawyer can sign the contract and the deed for you.
Read more: NIE, power of attorney and bank account
Licences, land and rentals
Is it a problem if the villa has an unlicensed extension?
It can be. It may affect value, financing, insurance, rental and resale. Whether the authorities can still act depends on the date of the works and the type of land.
Read more: Villa due diligence in Mallorca
Can I rent the property to tourists?
Only with a valid tourist rental licence. New licences for apartments in multi-dwelling buildings are prohibited across the Balearic Islands, so the existing licence must be checked before you buy.
Read more: Buying a property with a tourist licence
Can I build or extend on rustic land?
Only within strict limits that depend on the land category, the island plan and the legal status of the existing buildings. Protected land is far more restrictive.
Read more: Buying rural property in Mallorca
Costs, tax and selling
How much tax do I pay when buying?
Resale properties pay Balearic transfer tax on a progressive scale; new builds sold by a developer pay VAT and stamp duty. Notary, registry and professional costs come on top.
Read more: Purchase costs and taxes
What happens if I sell as a non-resident?
The buyer withholds 3% of the price for the Spanish tax authority. You then declare the gain and pay the difference or claim a refund.
Read more: Selling property as a non-resident
Do I pay tax every year as a non-resident owner?
Yes. Non-resident owners pay an annual income tax on the property even when it is not rented, plus the municipal property tax (IBI).
Read more: Property tax and inheritance
Found the property? Let us check the law
Call, WhatsApp or email us with the listing, the reservation document or your question. We will explain the legal position in plain English and the next step to take before your money is at risk.