Buying Property in Mallorca

Q: What does it generally cost for property in Mallorca?
A. Prices for a one bedroom apartment start around 110’000Euros (£76’000). Of course, the price is in line with the property’s size—the more luxurious and spacious the property, the more it costs. You should also add 10% to the purchase price to cover costs like surveys, taxes, etc.

Q. Is it easy to purchase a property in Majorca?
A. Yes, very easy. We will introduce you to friendly, supportive people who will help you through all aspects of purchasing your property efficiently. They are all professionals, speak fluent English, live in Mallorca, and have a great deal of experience helping people from the UK who are new to buying offshore properties. They will assist you with all aspects of the Mallorca purchasing process, e.g. obtaining a NIE number, open a bank accounts etc.

Q. Can I trust the people I will deal with? How will I know?
A. You can save a lot of time and anguish by using reputable people and companies who we will be happy to recommend to you. We have lots experience of working with them and we would not give approval if they were not dependable and trustworthy. Our reputation depends on theirs - we could lose our business if we introduced clients to disreputable or unreliable traders. Mallorca Luxury Estate will help you every step of the way, and will be right there with you to deal with anything you do not understand fully from beginning to end of your Mallorca property purchase.

Q. What type of deposit will I need?
A. Once you have found the property in Mallorca that you want and have agreed a price with the estate agent, you must fill out an Option-Purchase Contract and send 10% of the purchase price to a special account held by the agent. The lawyer we introduce you to will handle this for you. Once you have signed the Option-Purchase Contract and sent your deposit, a date will be set for completion of the deal. Negotiating this date is very important - if you do not complete the deal by the deadline, you could lose your deposit.

Q. Is getting a mortgage and bank account easy?
A. Yes. For the mortgage, you will have to show proof of income – recent payslips or a P60 will suffice. You will need a copy of your latest accounts if you are self employed. You may borrow up to 70% of the first property’s purchase price and 60% of the purchase price of all other properties after that. Opening a bank account is fast and easy. You will have to show your current passport and two other IDs, including NIE number. After opening your account, requesting credit and debit cards is then done almost instantly.


Q. What types of mortgages are available in Mallorca?
A. You can have a variable rate or fixed rate mortgage, just like in the UK, the more popular of which is currently the variable mortgage. Your rate on the variable is fixed in advance annually, and reviewed at each year’s end. Then it is adjusted for the next year’s payments.



Q. Is there a Council Tax when you own a property?
A. There is a Town Hall Tax, which is for public services such as waste collection, etc., and is only a few hundred pounds annually, dependent on size and location. Other costs and taxes include Wealth Tax, which is small but based on the value of your property. There are also community fees, which a management company charges on their properties within a complex, do check what these fee do and do not include.

Q. How are bills paid?
A. Your Spanish bank will organise standing order payments or direct debits for all utility bills once you open a bank account on Mallorca. It is only a matter of transferring your funds from the UK, which can be done electronically, you will need to use a money broking company who will change Sterling to Euros, transfer the funds and deposit in your Spanish account.

Q. How do I secure my Mallorca property if I am absent?
A. We can introduce you to local reputable companies, who have been established on the island for many years and who can assist with your requirements whether they are large or small for a service fee. These contacts are also very useful for all local advice and information, arrangements for household delivery, key holding, renting, cleaning, and much more.

Q. Is heating required for the winter?
A. We advise heating - winter nights in Mallorca can be cold. The best choice might be dual purpose air conditioning units, since they cool summer temperatures and can be set to heat rooms in the winter.

Q. How do I get from the airport to the resort and back?
A. If you are accustomed to package holidays, making your own way around is not a problem. Obviously, owning property means you must provide your own transportation to and from the airport. Many people hire cars, often advertised on your air carrier’s website and which can be booked in conjunction with you air tickets, or we can recommend a company who can meet you at the airport on arrival and collect the car on departure. You will find the car rental agencies in the arrivals hall at the airport, you will need to show the credit card used when booking and your UK driving license and passport. The cars are parked on the bottom floor of the multistory car park. Always remember to refuel the car before you return it to the agency, otherwise you will be charged at a much higher rate. However, if you don’t wish to drive yourself there are always plenty of taxis available at the airport - do check the price for the trip before you get into the car - the trips to the resorts from the airport are always cheaper than the trips to the airport from the resorts.