BUYING PROPERTY IN THE BALEARIC ISLANDS

Once you have decided on the property that you wish to purchase you will be asked to sign a purchase option contract and pay a 10% deposit. This is a private contract between you and the seller. This contract is almost impossible to break so we advise the use of a lawyer. As soon as all the relevant searches have been completed you will be asked to complete the purchase at a Notary's office. There you will pay the outstanding balance of 90% plus the Notary fees which can be up to 10% of the purchase price. You will sign for the property and become the new owner.

The fees the Notary is legally obliged to charge are fixed by the government and will change with the type of property you purchase.

No VAT

When you purchase a private residence direct from the owner or through their representative (estate agent) no VAT is levied. All other taxes are included in the Notary fees.

VAT

If you are buying a new build private residence VAT (IVA) is charged at 7%
If you are buying an existing business or commercial property VAT is normally 7%.
When you purchase a new commercial property VAT is 16%.

FEES

Agents fees are paid by the seller and included in the sales price, but capital gains tax (plusvalia) at 3% can be levied on the buyer. We recommend you ask before signing the purchase option contract.

LEGALLY

A legally appointed Notary must be used for the completion of your purchase. BUT, it is not a legal requirement for the rest of the buying process. Balearic Island Property recommend you use the services of a lawyer as soon as you have decided on the property you wish to purchase.

The information given here is to help you understand what is involved in the buying process and is not legal advice. Laws are changing constantly, so please consult a lawyer.

For a list of lawyers (Abogado/Gestoria) in your local area use our Local Contacts and Businesses and look under Professional Services.