12 Essential Steps for Foreigners Buying Property in Spain

With its stunning climate, lifestyle, and investment opportunities, Mallorca has become an attractive destination for foreigners looking to purchase property. However, buying a home in Spain involves several important steps, from hiring legal assistance to securing financing and completing all necessary paperwork. 

Buying a Property in the Balearic Islands:

A Step-by-Step Guide

1. View Properties with a Licensed Real Estate Agent

If you’re looking to buy a property in the Balearic Islands, Spain, our Team Puerto de Andratx is here to guide you. We ensure a professional and seamless experience from start to finish.

2. Submit an Offer

Once you’ve found the perfect property, submit your offer in writing via email. If the seller accepts, swift action is essential to secure the deal before someone else does.

3. Hire a Legal Specialist

If you don’t already have a lawyer, we can help you engage a trusted legal expert to guide you through the process. While not mandatory, a legal specialist ensures smooth transactions, minimizes travel, and protects your interests.

4. Conduct a Feasibility Study

If you require a mortgage, start by assessing your financial feasibility. We recommend Lionsgate Mortgage Broker in Palma de Mallorca, who offers free consultations and expert advice.

5. Obtain a NIE (Foreigner’s Identification Number)

A NIE (Número de Identificación de Extranjero) is required for all official transactions in Spain. You can apply at the Spanish Embassy in your home country or have a lawyer handle the process on your behalf.

6. Open a Spanish Bank Account

A local bank account is necessary to pay all taxes and fees related to the purchase. Many banks allow remote account opening via power of attorney. Your lawyer can assist, or you can visit a bank while in Mallorca.

7. Arrange a Property Inspection

Hire an inspection company to assess the property’s condition. Your representative in Spain will also obtain a "Nota Simple Registral" (property report) to confirm its legal status.

8. Gather Mortgage Documents

If financing is needed, prepare the required documents for the bank to evaluate your financial standing. Requirements may vary by bank.

9. Get a Property Appraisal

Before finalizing a mortgage, a property appraisal is necessary to determine its market value.

10. Sign Pre-Contractual Documents & Meet with a Notary

After signing pre-contractual agreements, you’ll have a 10-day cooling-off period to review terms with your notary and clarify any concerns.

11. Pay the Reservation Deposit

To reserve the property, a 10% deposit is typically required. We strongly recommend making this payment at the notary's office to ensure security. If the buyer withdraws, the deposit is forfeited; if the seller withdraws, they may be required to return double the deposit.

12. Finalize the Purchase & Mortgage

The final step is signing the purchase agreement and mortgage contract before a notary. This legally transfers ownership in exchange for the agreed payment, with legal consequences for any breach by either party.

Following these steps helps ensure a secure and straightforward property purchase in Spain.

Looking forward to help you to find your dream holiday home in Spain.

/ Liza Markert

Team Puerto de Andratx