Incidental purchase costs for real estate in Mallorca

If you want to buy a property in Mallorca, it is important to be aware of the additional costs that may be incurred beyond the purchase price. Here are some of the most important incidental costs of buying real estate in Mallorca:

1. Real estate transfer tax: The real estate transfer tax is levied by the Balearic government and is currently around 8% of the purchase price (the exact rate you can calculate staggered, and this goes from 5-13%).
2. Notary and land registry fees: Notary and land registry fees are charged for the notarization of the purchase contract and the registration of the property in the land register. The cost varies depending on the purchase price, but expect about 1-2% of the purchase price.
3. Attorney Fees: It is recommended that you hire an attorney to review the purchase agreement and other documents to make sure everything is in order. The cost of an attorney varies, but expect to pay about 1% of the purchase price.
4. Real Estate Agent Commission: When you hire an agent to find a property, sometimes there is an agent’s commission. However, it is common in Spain that the seller pays these costs.
5. Value added tax (IVA): In the case of new buildings, a value added tax of 10% is levied on the purchase price instead of the land transfer tax.
6. Energy certificate: When selling a property, an energy certificate must be available (this is usually also paid by the seller). The cost of this varies depending on the size and type of property, but expect to pay around 200-300 euros.

It is important to note that this is only a rough estimate of costs and that actual costs may vary depending on the circumstances and type of purchase. It is advisable to consult an experienced solicitor and estate agent to assist you in estimating the incidental purchase costs and in completing the purchase.