More and more overseas buyers are investing on the idyllic island of Mallorca. This fact is due to the fantastic economic market, which specifically favours the island and allows the development of fruitful investments and businesses. It is also influenced by the Real Estate market, which makes things easy when it comes to buying or selling a property on the island. Which is why if you are a non-resident or a foreigner and you want to buy or sell a property in Mallorca, we recommend carefully reading the advice in this blog article so that you can clear up any doubts which you may have about the buying or selling process. Grab a pen and paper and join us.
The first thing you should know if you want to buy or sell a property in Mallorca is that you will have no problem doing so. In Spain there are all kinds of systems in place to facilitate your process and ensure that it be 100% satisfactory. We will be at your side through the entire journey to ensure you are settled into your new home. It is important to firstly distinguish between buying as a Non-residents or a resident. A Non resident or foreigner is someone who does not spend 183 days a year (more than half the year) in Spain, who does not have a direct or indirect core of activities on the country. Considering these factors, we must differentiate the terms for when a non-resident wants to buy or sell a property for sale in Mallorca.
Before beginning any purchase, a foreign buyer must have a valid foreign identification number -better known as a NIE. In order to obtain it, you must request an appointment at the Office for Foreigners, at the General Foreigners’ Commissariat or at the Consulate of the applicant’s country. Following this, it is advisable that the applicant open a bank account in Spain in order to guarantee an official payment method in the country and be prepared to process the appropriate taxes required before signing at the Public Deed. If you comply with all these steps, you are guaranteed a smooth process when buying a dream home on the island.
In this instance, the non-resident who wants to sell must be in possession of a NIE. From that moment on, the sale of the property by a non-resident is covered by the Non-Resident Income Tax (IRNR), the tax on the increase in value of urban land -better known as Plusvalía Municipal- and as a general rule, the buyer will be obliged to retain 3% of the purchase price during the time of the signing of the Public Deed and pay it to the Treasury within a maximum period of one month as payment to the account of IRNR. In addition, the non-resident seller must pay the Municipal Plusvalía provided that the value of the property be higher than during the initial time of purchase.
We know that some of the terms and conditions for buying a property in Mallorca can be very confusing for a buyer or seller who is not a resident, which is why we strongly recommend seeking guidance from professionals in the field such as our Real Estate experts. Contact our Real Estate agency in Pollensa and we will help you with every aspect of the purchase or sale. Let us help you!