Selling a house in Mallorca: process, taxes and costs (including for non-residents)
Steps, documents, plusvalía, capital gains tax and the 3% withholding for non-residents: what you need to know before selling your home in Mallorca.
In this article
Selling a house in Mallorca usually takes two to six months from going on the market to signing at the notary. Along the way you’ll need to gather documents, set a realistic price and, at the end, pay two taxes: the municipal plusvalía and tax on your capital gain. If you are not resident in Spain, the buyer will also withhold 3% of the price as an advance payment of that tax. This guide walks you through the process step by step, based on what we see every day selling homes in Portocolom and the south-east of the island.
Many owners who call us bought ten or twenty years ago and now want to sell from abroad. It’s perfectly doable, but start early: some documents take weeks.
Step 1: Set a realistic price
The asking price decides almost everything else: how many viewings you get, how long the sale takes and how much room is left for negotiation. A house that starts too high and sits on the portals for months often ends up selling for less than it would have achieved with the right price from the start.
To set it with real data, you can request a free valuation of your property: online with the cadastral reference, or with a viewing. We send you the report in writing.
That means looking at real sales in the area, not just asking prices, and at what makes your property stand out: orientation, views, condition, holiday rental licence, plot. Our article on property prices in Portocolom explains the difference between asking and closing prices.
Step 2: Gather the paperwork
Having it ready before you start avoids delays and reassures buyers. This is what you’ll be asked for:
- Title deed (escritura) and an up-to-date land registry extract (nota simple).
- NIE for every owner – non-residents need one to sell too.
- Latest IBI bill and rubbish charge, paid.
- Community certificate confirming there are no outstanding fees, if the home is part of a community of owners.
- Energy performance certificate: required to advertise the property.
- Valid habitation certificate (cédula de habitabilidad; in the Balearics it expires after ten years – if yours has, renew it beforehand).
- If there’s a mortgage, the bank’s statement of outstanding debt so it can be cancelled at completion.
- If you’ve extended or renovated, the building permits. On country houses, buyers and their lawyers check this very closely.
- If you rent to holidaymakers, the paperwork for the holiday rental licence.
Step 3: Decide how to sell
You can sell privately or through an agent. If you use an agent, you’ll also decide between one agency on an exclusive basis or several at once. In our experience, a well-run exclusive mandate for a sensible period usually works best: one price on the market, one point of contact, and an agency that invests in photography, advertising and viewings because its work counts. If a full exclusive doesn’t appeal, a shared exclusive between cooperating agencies is a middle way.
At Lighthouse Living the seller always pays the fee; see who pays the estate agent’s fees in Spain.
Step 4: Viewings, offer and deposit contract
When a buyer makes an acceptable offer, the usual step in Mallorca is a deposit contract (contrato de arras): the buyer pays a deposit, typically around 10% of the price, and a completion date is set. Under the most common type, arras penitenciales, the buyer loses the deposit if they pull out; if the seller withdraws, they repay double. Before signing, the buyer or their lawyer will check the nota simple, any charges and the planning situation.
Step 5: Completion at the notary
At the notary the deed is signed, the buyer pays the balance and you hand over the keys. Any mortgage is paid off from the proceeds. It’s usual to split the year’s IBI by days and, if the seller is non-resident, the buyer withholds the amounts the law requires at this point (see below). If you can’t travel to Mallorca, you can sign through a power of attorney granted in your home country and apostilled.
Taxes when selling a house in Mallorca
1. Municipal plusvalía
This is the town hall’s tax on the increase in value of the land since you bought. There are two methods: the objective one, based on the land’s cadastral value and coefficients for years of ownership, or the actual gain; whichever is lower applies. If you sell at a loss, nothing is due, but you have to prove it. The seller pays it within 30 working days of completion.
If the seller is non-resident, the law makes the buyer liable for paying it, which is why the buyer usually withholds the amount at the notary.
2. Capital gains tax
You pay tax on the difference between what you get from the sale and what the house cost you. The purchase price is increased by the taxes and costs you paid when buying and by improvements you can prove with invoices; the sale price is reduced by selling costs (agency fee, energy certificate, plusvalía…). So keep every invoice.
| Resident in Spain (IRPF) | Non-resident (IRNR) | |
|---|---|---|
| Rate | Savings scale: 19% to 30% depending on the size of the gain | Flat 19%, wherever you live |
| Withholding at completion | No | Yes: the buyer withholds 3% of the price (Modelo 211) |
| When to declare | In the following year’s income tax return | Modelo 210, within three months after the buyer’s one-month deadline to pay the withholding |
Residents over 65 selling their main home, and those who reinvest the proceeds in a new main home, may be exempt. Check your case with an adviser.
The 3% withholding for non-residents
When the seller is non-resident, the buyer must keep back 3% of the price and pay it to the Tax Agency within one month using Modelo 211. It isn’t an extra tax: it’s an advance payment. The seller then files Modelo 210 with the actual gain: if 19% of the gain is more than the amount withheld, they pay the difference; if it’s less, or the sale was at a loss, they claim a refund of the excess. Refunds can take time, so file Modelo 210 promptly with all supporting documents.
Example. A seller living in Germany bought in 2010 for €250,000 (plus €25,000 in purchase taxes and costs) and sells in 2026 for €450,000, with €20,000 of selling costs:
| Item | Amount |
|---|---|
| Sale value (€450,000 − €20,000 costs) | €430,000 |
| Purchase value (€250,000 + €25,000 costs) | €275,000 |
| Gain | €155,000 |
| Tax (19%) | €29,450 |
| Withheld by the buyer (3% of €450,000) | €13,500 |
| Payable with Modelo 210 | €15,950 |
The example leaves out plusvalía, which is also deducted as a selling cost. Also check that your annual Modelo 210 for deemed income is up to date – missing years usually come to light when you sell.
Whether the gain must also be declared in your home country depends on the double taxation treaty; ask your tax adviser there.
Seller’s costs
- Agency fee, plus VAT.
- Notary: unless agreed otherwise, the seller pays for the original deed and the buyer for their copy.
- Mortgage cancellation, if there is one (notary and registry).
- Energy certificate and, if needed, renewal of the habitation certificate.
- Plusvalía and capital gains tax.
- Gestoría or lawyer, if you use one.
Common mistakes when selling
- Starting too high “to leave room”. The first weeks bring the most interest; once they’re gone, it’s hard to get them back.
- Looking for documents once there’s a buyer. An expired cédula or an extension without a permit can delay completion or sink the sale.
- Not keeping purchase and renovation invoices. Without them, the gain – and the tax – come out higher.
- Forgetting the 3% withholding. Non-resident sellers receive 3% less at completion; plan for it if the money is going into another purchase.
How we help you sell
We’re a family-run agency specialising in Portocolom and south-east Mallorca. We value your home using real sales in the area, go through the paperwork with you before launch, present your property with professional photography to buyers from Germany, the rest of Europe and Spain, and stay with you all the way to the notary – in English, German or Spanish. If you’re selling from abroad, we coordinate with your gestoría or lawyer so you travel as little as possible.
Frequently asked questions
How long does it take to sell a house in Mallorca?
It depends on price and property type. With the right price, two to six months to agree a sale is typical, plus the time between the deposit contract and completion.
What taxes does a non-resident pay when selling a home in Spain?
The municipal plusvalía and 19% on the gain (Modelo 210). The buyer withholds 3% of the price as an advance on the latter.
Can I sell my house in Mallorca without travelling to Spain?
Yes, with a power of attorney granted in your country and apostilled. Even so, be available to answer questions and approve the deposit contract.
Who pays the plusvalía, the buyer or the seller?
The seller. If the seller is non-resident, the buyer withholds it from the price and pays it on their behalf.
This article is for general information and is up to date as of October 2026. It is not a substitute for professional tax or legal advice.
