Buying a House in Mallorca as a Foreigner: Step-by-Step Guide (2026)

Anyone can buy a home in Mallorca, whether or not they live in Spain. The process is safe if you follow the steps in order: a realistic budget including taxes, an NIE number, legal checks on the property, a deposit contract and signing before a notary. In this guide we explain each step as we experience it with our clients in Portocolom and the southeast of the island, along with the mistakes we see most often.

Can foreigners buy a house in Mallorca?

Yes. You do not need to be a resident or an EU citizen. You will, however, need a foreigner’s tax identification number (NIE) and, in practice, a Spanish bank account to pay taxes and bills.

Buyers from abroad usually ask the same things: what the purchase really costs, what to check before paying anything, and how signing at the notary works. Let’s go step by step.

Step 1: Work out the real budget (price + taxes + costs)

The most common mistake is counting only the asking price. When buying a resale property in the Balearic Islands you pay transfer tax (ITP), charged in bands according to value:

If you buy a new build directly from the developer, you pay VAT (10% on homes) plus stamp duty (AJD) instead of ITP.

On top of that come notary, Land Registry and, if you use one, a gestoría or lawyer. Costs depend on the price and complexity, so ask for an estimate before committing. With a mortgage, add valuation and bank fees.

Don’t forget the running costs: IBI (local property tax), refuse collection, community fees if any, insurance and, if you are not tax resident in Spain, the annual non-resident income tax return for the property.

Step 2: Get your NIE and open a bank account

The NIE is required to sign the deed and pay taxes. You apply at the National Police in Spain or at the Spanish consulate in your country. Apply early, as appointments can take time.

A Spanish bank account is not legally required, but it makes everything easier: tax payments and direct debits for electricity, water, IBI and community fees.

Step 3: Search with a clear plan (and get to know the area)

Mallorca is not a single market. An apartment by the harbour in Portocolom, a village house in Felanitx or a country finca inland differ greatly in price, use and obligations. Before viewing, decide what the home is for: a holiday home, living here all year or renting out.

If you plan to rent to holidaymakers, bear in mind that tourist rentals in Mallorca are tightly restricted and need a licence that not every property can obtain. Check this before reserving, not after.

For guidance on prices, see our analysis of Portocolom property prices in 2026 and our guide on where to buy in southeast Mallorca.

Step 4: Check the property before paying anything

This is the stage that prevents most problems. Before signing any reservation, check:

• Land Registry extract (nota simple): who owns it and whether there are mortgages, seizures or other charges.
• Planning status: that what is built matches what is registered and has a licence. This matters especially on rustic land, where not everything can be legalised.
• Bills paid: IBI, community fees and utilities with no arrears.
• Energy certificate: the seller needs one to be able to sell. See our article on the energy certificate in Spain.
• Physical condition: damp, roof, installations, pool or septic tank in country houses. For older homes, an independent survey is cheap compared with a nasty surprise.

Step 5: Reservation and deposit contract (arras)

Once you agree, there is usually a small reservation that takes the property off the market while checks are done, followed by the deposit contract (contrato de arras): the buyer pays a deposit (often around 10% of the price) and the completion date is set.

With the usual “arras penitenciales”, if the buyer pulls out they lose the deposit; if the seller pulls out, they must pay back double. Read carefully what you sign: deadlines, what is included in the sale (furniture, for example) and what happens if a mortgage is refused.

Step 6: Signing at the notary and registration

The sale is completed by a public deed signed before a notary. The notary checks identities, charges and payments and reads out the deed. If your Spanish is limited, you can bring an interpreter you trust.

Can’t travel on the day? You can sign through a power of attorney, granted in Spain or before a notary in your own country (with a Hague apostille and translation if needed).

After signing, the taxes are paid and the deed is registered at the Land Registry. Then utilities and IBI are transferred to your name.

If the seller is not tax resident in Spain, the buyer must withhold 3% of the price and pay it to the tax office. We explain this, and who pays the agency fee, in who pays estate agent fees in Spain.

The most common mistakes when buying in Mallorca

1. Budgeting without taxes. ITP (8–13%) and costs can change what you can afford.
2. Paying a deposit without seeing the nota simple. A few minutes of checking avoids surprises with charges or owners.
3. Assuming you can rent to tourists. Without a licence you can’t, and getting one is not always possible.
4. Not checking what has been built on country properties. An unlicensed extension on rustic land can be a serious problem.
5. Choosing an area after a single summer visit. Some coastal resorts change a lot in winter. If you plan long stays, visit out of season too.

Frequently asked questions

Do I need to be resident to buy a home in Mallorca?

No. You only need an NIE. Residency is a separate process for anyone living in Spain for more than three months.

How much tax do you pay when buying in Mallorca?

For resale homes, ITP of 8% to 13% depending on value. For new builds, 10% VAT plus stamp duty. Notary, registry and gestoría fees come on top.

Can I buy without travelling to Mallorca?

Yes, with a power of attorney. We still recommend viewing the property in person before committing.

Who pays the estate agent’s fee?

It depends on what is agreed. At Lighthouse Living the seller always pays the fee.