Why buyers get caught out
International buyers often expect the closing process to check the property for them, as a title company would. In Mallorca the notary checks the registry on the day, but not licences, planning, debts or rental rights. Illegal extensions and non-transferable rental licences are the most expensive surprises we see.
US closing compared with a Mallorca purchase
| United States | Mallorca and the Balearics |
|---|---|
| Purchase agreement and earnest money in escrow | Arras contract; deposit of around 10% usually paid to the seller |
| Title search and title insurance | Land Registry extract and lawyer's due diligence |
| Inspection contingency | Conditions negotiated in the contract, technical survey by an architect |
| Closing agent or attorney | Notary signs the public deed; your lawyer protects you |
| Recording the deed | Registration at the Land Registry |
| Property tax | IBI, non-resident income tax and, for higher values, wealth tax |
Title, licences and planning
A Spanish Land Registry record is reliable for ownership and charges, but it does not say whether the buildings are legal. We compare the nota simple with the Cadastre, the town hall planning file and the licences for every building, pool and extension, and we check debts and the community of owners. On rustic land and on the coast the rules are especially strict; see rustic land in the Balearics and legalising illegal buildings.
Protecting your deposit without escrow
Because there is no escrow agent, the arras contract must protect the deposit itself: conditions linked to our checks and your financing, refund mechanisms, deadlines that suit an international transfer and, if the seller is non-resident, the legal retentions. We negotiate those terms before you send any money. See reservation and arras contracts.
Requirements for American and other non-EU buyers
- NIE: the foreigner identification number, required to buy, pay taxes and connect utilities.
- Bank account and funds: Spanish banks apply anti-money-laundering checks to international transfers; we prepare the documentation.
- Military authorisation: some areas of the islands require it for non-EU buyers. See military authorisation.
- Residence: buying property no longer gives a golden visa. See golden visa ended.
Our guide for American buyers in Mallorca and Ibiza explains the full process, including tax coordination with your US adviser.
Investment and rental property
For investors, the legal value of a property often depends on what it can be used for. We check tourist rental licences, the rules on long-term letting, commercial use and hotel licences, and we advise on whether to buy personally, jointly or through a company. See property investment in the Balearic Islands and our investment service.
Closing remotely
Many international clients never travel for the closing. With a power of attorney signed in your country, with the apostille, we sign on your behalf, control the payments and register the title. You receive written updates in English at each step.
We are the property practice of Castell.law in Palma de Mallorca, acting for international buyers in Mallorca, Ibiza, Menorca and Formentera.
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.
Questions about real estate lawyers in Mallorca
Is title insurance used in Mallorca?
It is available but uncommon. Buyers rely on the Land Registry, which is publicly guaranteed, and on their lawyer's due diligence of licences, planning and debts.
Can Americans buy property in Mallorca?
Yes. There are no general restrictions on US citizens buying property in Spain, although an NIE is required and some areas need military authorisation for non-EU buyers.
Who holds the deposit in a Spanish purchase?
Usually the seller or the agent receives the arras deposit directly. That is why the contract terms, negotiated by your lawyer, are the main protection.
Do I need to be present at closing?
No. With a power of attorney your lawyer can sign the deed before the notary and complete all the steps after closing.