3.2. Costs and taxes
It is essential you are fully informed of all the possible costs and taxes involved, before buying a property in Mallorca, and unless you are planning to re sell immediately, it is also important to have a good understanding of the ongoing costs of being a property owner in Mallorca.
Although you should be well supported by your real estate agency and your lawyer will take care of all the details, a personal knowledge of the real costs from the outset will help you make a better purchase and avoid unnecessary headaches and disappointments in the long run.
There are a number of costs and taxes which you will have to pay when you buy property in Mallorca, on top of the price of the property. What and how much you pay will depend largely on the type of property you purchase.
Lawyer and estate agency fees are not regulated nor fixed so should be agreed on prior to purchase.
As a general guideline calculate an additional 10-15% of additional fees and taxes, on top of the agreed purchase price. Once the final sales price has been agreed with the seller, an approximation of these additional fees and taxes can be calculated.
Taxes - Property Transfer Tax or VAT depending on whether the property is a re sale or new build and Stamp Duty.
Lawyer and legal fees. Generally between 0,5-1,5% of purchase price. This however is not binding and varies between law firms.
Property valuation (Tasador ). This is only necessary if you are getting a mortgage.
Estate agency fees (often paid by the seller). This is 7% on the price of the public deeds to be paid in Hacienda, in the regional government offices in Palma.
Notary fees, inscription into the land registry (Title deed tax and land registration fee) - 1-2,5 %
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