Real Estate Lawyer Palma de Mallorca

Hiring a lawyer is not legally compulsory in Spain, but independent legal advice is strongly recommended, particularly for international buyers. An English-speaking real estate or property lawyer acts exclusively for you, reviews the contracts, carries out legal and planning due diligence, identifies risks and negotiates the purchase terms. The lawyer can also handle tax filings and coordinate registration of your ownership with the Spanish Land Registry after completion.

A Spanish notary is an impartial public official who advises the parties, performs the required legal checks and authorises the public deed of sale. However, the notary does not represent the buyer exclusively or replace buyer-side due diligence. A real estate lawyer protects only their client’s interests, investigates the property, reviews and negotiates the contracts, files the purchase taxes and coordinates registration with the Spanish Land Registry.

A “contrato de arras” is a private deposit agreement commonly signed before completion of a property purchase in Spain. It normally establishes the price, deadlines, conditions and consequences if either party withdraws.

Where the agreement expressly contains “arras penitenciales”, the buyer may lose the deposit if they withdraw. If the seller withdraws, they must return the deposit and pay the buyer an additional amount equal to that deposit as compensation. The agreement should always be reviewed by a lawyer before it is signed or any money is paid.

The lawyer verifies the seller’s identity and authority, legal ownership and the mortgages, liens, seizures, usufructs, easements or other encumbrances shown in the Land Registry extract, known as a “nota simple”. The lawyer also compares the Spanish Land Registry, Cadastre and the physical, legal and planning reality of the property.

Further checks may cover unregistered works, community of owners’ debts, IBI property tax, existing tenancies and proceedings affecting the property. Legal due diligence does not replace a structural or technical survey, which may also be advisable.

Yes. We examine planning permissions, building licences, extensions, renovations and changes of use, together with their compliance with municipal records. We also investigate possible planning infringements, enforcement proceedings and buildings or works that have not been properly regularised.

This review is particularly important for detached houses, rural properties and renovated homes. When necessary, we obtain information from the local council and coordinate the assistance of an architect or other technical specialist.

Yes. Foreigners and non-residents can generally buy property in Mallorca and the Balearic Islands. They will normally need a NIE, the identification number used for Spanish tax, administrative and notarial procedures. A NIE identifies the holder but does not, by itself, grant Spanish residency or immigration rights.

However certain purchases by non-EU nationals, particularly rural properties in restricted areas, may also require prior military authorization. This should be checked before signing a binding agreement.

Yes. A buyer can grant a power of attorney authorising a lawyer or representative to complete specified procedures in Spain. Depending on its wording, the power may cover obtaining the NIE, signing contracts, attending completion before the notary, paying taxes and registering the public deed with the Spanish Land Registry.

A power of attorney signed abroad may require an Apostille or legalisation and an official Spanish translation.

A straightforward resale purchase often takes approximately six to twelve weeks from reservation to completion before the notary. However, there is no fixed timeframe. The process may take longer if the buyer requires financing, a NIE or military authorization, or if the legal and planning checks reveal issues that must be resolved.

New-build and off-plan purchases follow different timescales depending on the construction stage and contractual completion date.

A resale property is generally subject to Property Transfer Tax, known as ITP. A new-build property purchased from a developer is normally subject to Spanish VAT, known as IVA, and Stamp Duty, known as AJD.

Buyers should also budget for notary, Spanish Land Registry and legal fees, together with any mortgage, valuation, survey or technical costs. As a broad guide, total acquisition costs may represent approximately 10% to 11% of the purchase price. The exact amount depends on whether the property is new or resale, its value and the progressive tax rates applicable in the Balearic Islands.

A non-resident seller must declare the Spanish capital gain through Form 210, generally taxed at 19% (EU) or 24% (non – EU). The gain is broadly calculated by deducting eligible sale costs from the sale price and subtracting the acquisition value, including eligible purchase costs and documented improvements.

The buyer must withhold 3% of the sale price and pay it to the Spanish Tax Agency as an advance payment of the seller’s tax. The seller may also be liable for the municipal land value tax, known as IIVTNU or “plusvalía municipal”, together with agency, legal and mortgage cancellation costs. Tax may also arise in the seller’s country of residence under the applicable double-tax treaty.

Legal fees depend on the property value, the complexity of the transaction and the services required. A straightforward purchase does not involve the same work as a transaction involving planning irregularities, several sellers, corporate structures, financing or an international power of attorney.

Before starting work, our firm provides a clear quotation describing the services included, so the client understands both the legal fees and the scope of the assistance.

You should act quickly, preserve all evidence and arrange for an architect or technical specialist to inspect the defect. Photographs, reports, invoices and communications with the seller should be retained before substantial repairs are undertaken.

Under the Spanish Civil Code, the specific legal action for hidden defects is generally subject to a six-month period from delivery of the property. Other contractual or legal remedies may be available depending on the circumstances, so prompt legal advice is essential.