5 reasons why having an independent lawyer is critical when purchasing property in Mallorca

Once you have decided you want to purchase your dream home on the beautiful Spanish island of Mallorca, the first thing to consider doing is hiring an independent lawyer. It is one of the best investments one can make since the lawyer will be helping and guiding you throughout the whole process along with assisting you with the legal requirements when purchasing a property – you will be surprised how different it is to your country of origin!

It is highly advised to get a good lawyer to help you navigate your way through the changing overseas property market. The enormous database of available property in Spain online can be overwhelming and they will be able to find a reputable real estate agent that will show you the house that checks all of your boxes. Once you have decided what type of property you are looking for, a pre-purchase checklist will be useful. Is construction permitted? Are all the buildings legalised? Does it have an energy certificate?  These are some key questions to ask when buying a property in Mallorca.

By contacting a law firm such as AIPP legal members, Bufete Frau, specialised in property law, you will be able to leave everything in the hands of professionals, as they will make sure that the property meets all of the legal requirements.

If you don’t have your main residence in Spain but plan to purchase in the country, you will need to apply for the N.I.E number (Número de identificación de Extranjeros). Having this number is crucial when thinking of moving abroad. There are many ways of applying for this number, either at the police station in Spain, at the Spanish Consulate-General, or even through a third party with a notarised Power of Attorney – a lawyer can advise you on the best way for you.

It is always recommendable to get information about mortgage options as you can save huge amounts when deciding to mortgage the property. Purchasing in Spain means that you will need a Spanish bank account, and your lawyer will be able to advise you with the most prominent banks and even contact the bank directly on your behalf in order to make the process much easier for you.

We recommend to calculate approximately 10% on top of the sales price in order to leave some room for additional costs and taxes. These depend if you are purchasing as a private individual, as a company or as a self-employed person. These are some of the taxes you should take into consideration: property transfer tax (itp), the municipal appreciation tax (plusvalia), the property tax (IBI) and other taxes related to the purchase of a property. An independent lawyer can advise you so you can ensure these are all taken into account and paid accordingly.

According to the Spanish law, it is required that all parties attend the notary when the final exchange of contracts. It is crucial to pay all monies at the same time, as well as the paperwork needs to be correct, otherwise the sale won’t go through. By having a solicitor by your side, he will be able to act on behalf of you and make sure the process goes as smooth as possible. Once the process has been completed, there is still some paperwork and community charges to be paid, which can be arranged by the same lawyer.

When buying a property in Mallorca, the best advice you can take is to instruct a lawyer specialised in real estate law like AIPP legal members, Bufete Frau who will help you at every stage of the purchase process.

Also, with taxes at more than double the European average, it is extremely important to consider the wealth and inheritance tax implications, the changing laws and the required paperwork when completing the purchase at the notary. Bufete Frau provides expert legal and property law advice for overseas buyers to ensure that the purchase process of a home in Spain is a smooth and stress-free process.