preloader logo

Buying a house in Spain: Guidelines for foreigners

Purchasing a property in Mallorca can be a straightforward process when you understand the steps involved. Whether you're drawn by the island's 300 sunny days a year, world-class beaches, or Mediterranean lifestyle, this guide will walk you through the essential steps and considerations to make your dream home a reality.

So this article is for you, the foreigner who has decided to buy a house in Mallorca, Spain: a list with the basic steps you must follow to ensure you purchase the house of your dreams, and not the one of your nightmares.


On buying a house, you will need the help of an estate agent and a lawyer: the first helps you with the house and the second with legal issues. You may also require some translation.

1. Obtain Your NIE (Foreigner's Identification Number)

The Número de Identificación de Extranjeros (NIE) is mandatory for any financial activity in Spain, including buying a property. To apply for your NIE, visit the Policía Nacional with a notary-certified copy of your passport. This document is also essential for tax payments and opening a Spanish bank account.

2. Open a Bank Account in Spain

While not legally required, opening a Spanish bank account simplifies the payment of taxes, utilities, and other costs related to the property. Choose a bank familiar with international clients, such as Deutsche Bank or Santander.

3. Find and Reserve Your Dream Home

Once you've chosen your ideal location—be it bustling Palma or serene Pollensa—you can begin your search for a property. At JS Properties, we offer exclusive listings and expert advice to help you find the perfect home.

After selecting a property, you'll sign a Contrato de Arras (reservation agreement). This document secures the property for a deposit, typically 10% of the purchase price.

4. Verify the Property's Legal and Financial Status

A trusted lawyer should review the property's documentation, including the cédula de habitabilidad (certificate of habitability) and energy efficiency certificate. This step ensures the property is free of encumbrances or outstanding obligations.

5. Signing the Deed of Sale

The purchase is finalized with the signing of the Escritura de Compraventa (Deed of Sale) before a notary. After this step, the property must be registered in your name at the Property Registry.

6. Taxes and Additional Costs

  • Property Transfer Tax (ITP): Ranges between 8% and 11%, depending on the property's value.
  • VAT (IVA): Applies to new properties and is 10% of the purchase price.
  • Stamp Duty: An additional 1.2% of the property's value for new builds.
  • Annual Taxes: Includes IBI (property tax) and IRNR (non-resident income tax).

Up to date

Stay connected with the real estate and holiday world in Mallorca

Cookie settings

We use cookies to provide you with the best possible experience. They also allow us to analyze user behavior in order to constantly improve the website for you.