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Real Estate Lawyers in Mallorca

In Mallorca what decides a purchase usually sits outside the deed: whether what has been built holds a licence, whether the plot covers the structures standing on it, and whether the house can be let to tourists. That is what we check, alongside the nota simple and the charges, before you part with a deposit or sign an arras contract.

A good share of those buying on the island do not live in Spain. As your property lawyer in Mallorca we can run the document review and the meetings remotely, prepare signing through a power of attorney and check the requirements that apply, the NIE included.

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  • Our own office in Palma, covering the whole island.
  • We check planning and tourist-rental status before you sign.
  • Foreign buyers looked after in English, Spanish, Italian and Catalan.

Private clients: buyers, sellers and owners

To buy or sell a home, an apartment or a country property on the island, to check its registry and planning position before signing, or to resolve a problem with a tenancy.

See conveyancing, due diligence and lettings

Investors and companies

To move into assets and portfolios on the island, finance the purchase, acquire the company that holds the property, or close leases of commercial units, offices and industrial premises.

See investment, finance and companies

Legal advice on property in Mallorca for private clients and investors

We advise on buying and selling property on the island and on the checks worth running before you take anything on, with particular attention to the planning status of what has been built and to the tourist use of the home. Where a company or an investor is buying, we bring in the financing, the corporate structure and the tax position.

Private clients: buyers, sellers and owners

This gathers what weighs most in a Mallorca purchase: the reservation and the arras, the registry and planning checks, the certificate of occupancy, the taxes and any problems arising from a tenancy.

Buying a home, apartment or country property in Mallorca

We review the purchase before you hand over a deposit or sign an arras contract: what the Land Registry says, what charges the property carries and whether what stands on it is covered by the relevant licence. We also take you through the negotiation and the signing of the deed where that forms part of our instructions.

  • Purchase of apartments, flats, villas, houses and country properties.
  • New-build and off-plan purchases.
  • The offer, the holding deposit and the arras agreement.
  • Registry position of the property and the charges affecting it.
  • Planning status of the building, of any extensions and of the pool.
  • Certificate of occupancy, which the Balearics require on transfer.
  • Coordination of ITP, or of VAT and AJD, depending on the type of purchase.
  • NIE and documents required from a buyer not resident in Spain.

Selling a home or country property in Mallorca

We prepare the documents you will be asked for, review the terms of the sale and anticipate what tends to hold up completion: a mortgage still outstanding, works never legalised, an inherited or co-owned property, or a tenant with a live agreement.

  • Registry, planning and energy documentation for the sale.
  • Reservation document, arras and terms of the sale.
  • Cancellation of the mortgage and of other outstanding charges.
  • Documentary regularisation of extensions or works, where possible.
  • Plusvalía municipal and the seller’s income tax.
  • The 3% retention that applies to a non-resident seller.
  • Houses received through an inheritance, undivided shares and tenanted homes.
  • The deed gone through beforehand and the notary visit covered, if instructed.

Due diligence on the property before buying in Mallorca

We examine the legal position of the property with the depth the island calls for: beyond the registry information and the debts, we check whether what has been built is covered by a licence, whether the home can be used as a tourist rental and whether any coastal restrictions apply.

  • Nota simple, title and charges at the Land Registry.
  • Mortgages, attachments and debts with the association and council tax.
  • Planning status of the building and of its extensions.
  • Structures on rural land, annexes and swimming pools.
  • Certificate of occupancy and energy performance certificate.
  • Whether the home may be marketed as a tourist rental.
  • Effect of the Spanish Coastal Act on properties close to the sea.
  • Tenancy agreements in force over the property.

Residential, seasonal and tourist lettings

We draft and review tenancy agreements for main residences, seasonal lettings and commercial units held by small landlords, and we look at what may be marketed as a tourist rental, both contractually and under the applicable rules. We also act on unpaid rent, breaches and evictions.

  • Tenancy agreements for a main residence.
  • Seasonal lettings and short-term agreements.
  • Tourist rentals, contractually and under Balearic and municipal rules.
  • Retail premises let by individual owners.
  • Unpaid rent and other breaches of the agreement.
  • Termination of the tenancy and eviction proceedings.
  • Buying or selling a property that is already let.

Services for investors and companies in Mallorca

In an investment the work usually combines the purchase of the asset with the company acquiring it, the financing and the related contracts. On the island the prior planning check is almost always part of it too.

Investment in real estate assets and portfolios

We accompany those moving into or out of an asset on the island: we study which contracts and legal relationships weigh on each property and add whichever departments of the firm the investment requires.

  • Entering and exiting property assets on the island.
  • Buildings, single assets and portfolios.
  • Legal checks on each property forming part of the deal.
  • Residential, commercial and hotel assets.
  • Contracts and tenancies attached to the assets.
  • Investors from Spain and abroad.

Financing the acquisition and security

We review the documentation for the financing or refinancing of the asset and the security that comes with it, making sure the timing and the conditions fit those agreed in the sale and purchase.

  • Financing of property purchases.
  • Refinancing of assets and projects.
  • Facility agreements and related contracts.
  • Preparation and review of the security.
  • Negotiation of the legal documentation.
  • Fit between the financing and the signing of the purchase.

Buying companies and structuring the investment

Where the property belongs to a company, or the investment is channelled through a vehicle of its own, we run the real estate side together with the firm’s corporate and tax advice.

  • Transfer of the entity holding title to the property.
  • Share deals and asset deals.
  • Corporate deals where the value sits in the property.
  • Sale & leaseback of a property in operation.
  • Investment companies and vehicles.
  • Corporate and contractual documentation.
  • Tax coordination of the chosen structure.
  • Resident and non-resident investors.

Construction contracts and commercial leases

We give legal support on the contracts tied to carrying out works and on lettings of commercial units, offices and industrial premises for companies, breaches and delays included.

  • Contracts with builders and other suppliers.
  • Breaches and delays in the works, on the contractual side.
  • Business premises, offices and storage units on lease.
  • Amending or bringing business contracts to an end.
  • Involvement of the litigation team where a dispute ends in a claim.

Buying in Mallorca: planning, tourist rentals and the coast

In Mallorca the checking does not stop at the Land Registry. Most of the unpleasant surprises turn up in the planning status of what has been built: extensions, annexes or pools put up without a licence, or structures on rural land whose position is worth clarifying before signing.

If the idea is to let the house to tourists, it has to be confirmed beforehand that this particular property may be marketed that way under Balearic rules and under those of the municipality, because not every home and not every area allows it. Close to the sea it is also worth reviewing the effect of the Spanish Coastal Act. On top of all that comes the certificate of occupancy, required in the Balearics.

Why choose Intlaw to buy or sell in Mallorca

Before you part with a deposit or sign an arras contract, we define what has to be checked on that particular property and who needs to be involved. On the island that nearly always means looking at the planning position and at the use you intend to give the home.

1

A single point of contact throughout the purchase

You will have one lawyer who follows the purchase or the sale from beginning to end, coordinates everyone else involved and tells you at each point what is missing and what you have to decide.

2

Planning checks before you sign

An apartment in Palma does not raise the same questions as a country property on rural land with extensions. We review what has been built and under what authority before you take anything on.

3

Real estate, corporate and tax around one table

If a company is making the purchase, it is financed or it has tax consequences, those points are studied alongside the property documentation rather than separately.

4

Buyers and sellers from outside the island

We look after people buying or selling from mainland Spain or from abroad: remote review and meetings, signing through a power of attorney and the NIE where needed, in English, Spanish, Italian and Catalan.

5

If the home is going to be let

Where the purchase is driven by yield, we review what may be marketed and on what terms, and whether there is a tenancy in force that the buyer would be stepping into.

Tell us which home or country property you are looking at in Mallorca

If you are about to hand over a deposit, have an arras contract waiting to be signed, or want to know whether the house you like has its works legalised, tell us where you stand.

You can also write to us about a letting, an investment or the sale of a property on the island. With that information we will tell you what documentation is needed and what work we propose.

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How we take you through buying a home in Mallorca

The four stages follow the real order of a purchase, so that you know at every moment what has been checked and what is still ahead.

1

Before the deposit or the arras

We review the offer, the reservation document or the arras contract and explain what each party takes on and what happens if someone pulls out. Before we start you will receive the fee estimate and the engagement letter.

2

Due diligence on the property

We check the nota simple, the title and the charges and, in Mallorca, the planning and tourist position too: whether what has been built holds a licence and whether the home may be let to tourists. On a new-build or off-plan purchase we look at the licences and at the guarantees over the sums paid on account.

3

Negotiation and contract

Price, instalments and dates get agreed here, along with which charges must disappear from the register before signing, the notarial deposit of the arras where it applies, and any outstanding conditions that need to go into the contract, the mortgage included.

4

Completion before the notary and afterwards

We go through the draft deed before completion and attend the notary with you where that is part of the engagement. From there we deal with what has to be paid —ITP, or VAT and AJD, the plusvalía municipal, the 3% held back from a non-resident seller— and with registering the purchase at the Land Registry.

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The team behind your purchase in Mallorca

From Palma, one lawyer will keep hold of the thread of the purchase or the sale and bring in whoever is needed at each point: contracts, corporate, tax or litigation.

Alexandru Lazar

Lawyer

A member of the bar in Spain, Barcelona and the Balearic Islands, and a partner at INTLAW. He advises domestic and international investors, companies and family offices on property transactions from a commercial perspective: investment structuring, acquisitions of assets and holding companies, due diligence and contract negotiation. He works in Spanish, Italian, English and Catalan from Barcelona, Madrid and Palma.

Simone Guaglianone

Partner · Real estate and corporate

Admitted to practise in Spain and Italy and founding partner of INTLAW. He advises Spanish and international investors, companies and family offices on real estate matters from a corporate standpoint: structuring the investment, acquiring assets and property-holding companies, due diligence and contract negotiation. He works in Spanish, Italian, English and Catalan from Barcelona, Madrid and Palma.

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Meet the INTLAW team

What INTLAW clients say

INTLAW professional network

Colegios, cámaras de comercio y organizaciones con las que colabora INTLAW: Ilustre Col·legi de l'Advocacia de Barcelona, Camera Italiana Barcelona, CCI France Espagne, International Bar Association, LaborHub e IPWisely

Contact our property team in Palma de Mallorca

If you are looking at an apartment in Palma, a village house or a country property inland, have a reservation or an arras contract waiting to be signed, or want to sell a property on the island, tell us where you stand and which documents you already hold.

To size things up we need the property, your side of the deal, any date already booked at the notary and whether the house is meant to be let to tourists.

Phone

+34 931 125 423

Email

info@intlaw.eu

Address

C/ Gremi de Sabaters 21, B24, 2ª floor
Palma de Mallorca, 07009

Online appointment

Book an online appointment

Write to us about the apartment, house or country property you have in mind

Let us know the property in question, whether anything has been signed already, and at what point the matter stands.

INTLAW real estate advice in Barcelona and Madrid

INTLAW also advises on property purchases and investment from its offices in Barcelona and Madrid. Each page covers what is particular to that territory.

Real estate lawyers in Barcelona

Purchases and sales in Barcelona, with the registry and occupancy checks that Catalonia requires, arras agreements, lettings and investment.

See property lawyers in Barcelona

Real estate lawyers in Madrid

Conveyancing with the building inspection report, first occupancy licence, financing, tenancies and let commercial units as an investment in Madrid.

See property lawyers in Madrid

Questions buyers and sellers ask us in Mallorca

Not compulsory, but advisable. The notary verifies that the deed is lawful but will not negotiate for you or go through in detail what you signed earlier, such as the reservation document or the arras.

The sensible thing is to take advice before reserving the house, not once the money has already gone.

Under an arras contract both sides are tied to granting the deed and the buyer puts down part of the price.

The usual form, penitential arras, lets you walk away at a cost: the buyer does not get the advance back and the seller has to return double. Not every arras contract is penitential, though, so the wording has to be read.

Not every property and not every area allows it: it depends on Balearic tourism rules, on what the municipality provides for, and on the property holding the relevant licence.

If rental income is part of your plans, this needs checking before you buy rather than after.

It depends what was built, when, and on what class of land, because that determines whether the position can be regularised or remains exposed to planning enforcement.

It is one of the most important checks on the island, particularly on rural land.

On a resale house the buyer settles ITP (Transfer Tax) at the Balearic rate. On a new-build what is paid is VAT together with AJD (Stamp Duty).

The seller normally takes on the plusvalía municipal (municipal capital gains tax) and declares the gain through personal income tax; where tax residence lies outside Spain, through Non-Resident Income Tax.

The buying party holds back 3% of the agreed price and pays it to the Spanish tax authority as an advance on the seller’s tax. It should be set out in the arras contract and carried into the deed.

Yes. A power of attorney granted in your country of origin, apostilled or legalised as required, will do, or you can sign at the Spanish consulate that covers you. You will also need a NIE.

We run the process remotely from our office in Palma.

A tenancy in force does not end because the house changes hands: the buyer takes the landlord’s position and is bound by the Spanish Urban Leases Act.

It is also worth checking whether that tenant can exercise a right of first refusal.

On properties close to the coast it is worth reviewing the effect of the Spanish Coastal Act: if part of the plot sits in the public maritime-terrestrial domain or within the protection easement, that limits what can be done with it.

They vary with the property and with how far our work goes. You will receive the engagement letter with the fee estimate and a breakdown of what it covers before we begin, so nothing comes as a surprise afterwards.

Reach us through the form, by phone or by booking a slot. What we need first is the property, the point the matter has reached, the paperwork in your possession and any date already fixed.

Once we have that, we set out what remains to be gathered and send across the costs and the engagement letter before starting.