Additional purchase costs when buying a property in Mallorca

Once you have found your dream property on Mallorca, the financial planning begins.

Can I purchase the property with my own funds? Do I need partial financing? What costs are incurred in addition to the agreed purchase price? And that brings us to todays topic: the additional purchase costs when buying a property. It is important to pay attention to and calculate the value-added tax, land transfer tax and stamp duty.

We have the tax side of the real estate purchase in a separate article Mallorca Real Estate – Taxes for non-residents in our advice section.

In addition to the purchase taxes, there are other additional purchase costs, namely for the notary, the land register, the gestoria and possibly for the broker and a lawyer.

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1. Notary fees

The costs of the Spanish notary are based on a binding fee table and amount to between 0.1% and 0.3% of the purchase price. Additional copies and copies as well as any translation services that have been carried out will incur additional fees.

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2. Registry Costs

The property register (land register) also has a binding fee schedule and table. For the property register, you should calculate with fees between 0.1% and 0.2% of the notarized purchase price.

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3. Gestoria Costs

Unlike in Germany, the notary does not register and monitor the purchase process after certification. In Spain (if no lawyer is hired) this is done by an administration company, a so-called Gestoria. The Gestoria handles, for example, the payments of the real estate transfer tax and legal transactions with the property register (deletions and entries). Processing fees of between €200 and €1,000 (depending on the complexity of the case) are incurred for this.

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4. Attorney's Fees

Since the Spanish notaries have fewer examination and notification requirements than their German colleagues, it often makes sense to involve a Spanish lawyer. The lawyers specializing in real estate sales usually agree on a fee of between 0.5% and 1% of the purchase price, depending on the complexity of the case. In the case of difficult structuring issues, such as the clarification of preliminary inheritance and family law issues, cross-border tax issues and corporate law issues, the lawyer's fee will also be well above this average rate.

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5. Brokerage Fees

In Spain, the agent is regularly paid by the seller, unless the parties have expressly agreed otherwise. In Mallorca, the brokers commission rate is between 5% and 6% plus VAT (IVA) of the agreed purchase price.