The Ultimate Guide to Buying Luxury Property in Mallorca: 9 Steps to Secure Your Dream Villa

Mallorca is Europe’s blue-chip island market: a rare mix of crystal-clear coves, protected mountain villages, Michelin-starred dining, and year-round international access. Prime homes here—from sea-view villas to historic fincas—are limited by strict planning rules and geography, which is exactly why the best opportunities move quickly.

At Mallorca Select, we specialize exclusively in high-end real estate from €3M upwards. For more than 15 years, we’ve helped discerning clients navigate this unique market with discretion and care. What sets us apart is not just our insider knowledge of every corner of the island, but the way we work: we only open our doors to serious buyers, allowing us to dedicate our full attention to finding the right property and guiding each client through every stage of the purchase.

Buying in Mallorca isn’t difficult, but it is detail-driven. You’ll need the right paperwork (NIE, Spanish account), disciplined due diligence (Nota Simple, tax checks, Cédula de Habitabilidad, energy certificate), and a clean notarial process to secure title without surprises.

This step-by-step guide distills how serious buyers succeed on the island: what to prepare, which documents matter most, and where pitfalls hide—drawn from the on-the-ground expertise of Mallorca Select.

Step 1: Apply for a NIE Number (Número de Identidad de Extranjero)

Your very first step in buying a property in Mallorca is obtaining a NIE number—your Spanish tax identification number. Without it, you simply cannot complete the purchase. You’ll also need it for almost every other financial activity in Spain: opening a bank account, paying taxes, setting up utilities, or even buying a car.

In Mallorca, you can apply for your NIE at the Oficina de Extranjería in Palma’s Polígono de Levante. You’ll need to book an appointment online, bring your valid passport or national ID (plus copies), and pay a small administrative fee of around €10 at a local bank before the certificate is issued. If you’re a non-EU citizen, you may also be asked to provide a notarized statement explaining the reason for your application—such as purchasing a property.

The process itself is usually completed within a couple of hours, but navigating the forms, payment, and online booking system can be tricky without some Spanish.

Step 2: Open a Spanish Bank Account (Cuenta Bancaria)

Once you have your NIE, your next step is to open a Spanish bank account. This is essential whether you plan to purchase your property in cash or with financing. You’ll need it for the transfer of funds during the purchase process, as well as for ongoing costs like utilities, community fees, insurance, and taxes.

As a high-net-worth buyer, you’ll find that Spain’s major banks are well-prepared to serve international clients. Most require your NIE, passport, proof of address, and sometimes evidence of income or tax residency to set up the account.

Which banks are best for international buyers?

• Banco Santander – Spain’s largest bank with a global presence and strong online banking. It offers tailored products for non-residents, including mortgages with loan-to-value ratios up to 60–70%. Their non-resident account can be opened online, with debit cards and SEPA transfers included.

• Banco Sabadell – Particularly popular with expats and HNWIs, Sabadell offers multilingual services, flexible mortgage options, and strong support for complex financial profiles.

• BBVA – Known for its user-friendly digital platforms and international reach, BBVA is a solid choice if you value online banking and English-speaking staff.

• CaixaBank (HolaBank) – Designed specifically for international clients, HolaBank provides accounts and mortgages tailored to non-residents, along with Golden Visa support for qualifying purchases.

Most high-net-worth buyers prefer these established high-street banks over private banks for property transactions, since they don’t require assets under management and are fully geared toward non-resident mortgages.

At Mallorca Select, we maintain close relationships with leading banks on the island and can introduce you directly to trusted advisors who specialize in working with international clients. This way, you benefit from preferential service and can move quickly when the right property becomes available.

Step 3: Check for Arrears

Before you commit to buying your dream villa in Mallorca, you must confirm that the seller is fully up to date with payments. In Spain, debts tied to a property do not disappear with the sale—they stay attached to the home, and as the new owner, you could become liable.

That means if the seller has unpaid bills or overdue taxes, you may inherit them after signing. For high-value properties, this can add up quickly, so careful due diligence is essential.

Typical arrears you need to check include:

• IBI (Impuesto sobre Bienes Inmuebles): This is Mallorca’s annual property tax, usually ranging between 0.4%–1.1% of the cadastral value of the property. Depending on location and property type, this can mean anywhere from a few hundred euros for a small apartment to several thousand per year for a luxury villa.

• Basura (waste collection tax): Charged annually or biannually by the town hall, often between €150–€400 per year, depending on the municipality.

• Utility bills (electricity, water, gas): These must be settled before the transfer. Outstanding amounts can vary widely, but for larger homes with pools and gardens, bills can easily run into the hundreds of euros monthly.

• Community fees: If the property belongs to a residential complex, you’ll need proof that all community charges are up to date. Fees vary dramatically depending on facilities (pools, gardens, security, etc.)—from €1,000–€3,000 annually for standard complexes to €10,000+ per year in exclusive gated communities.

At Mallorca Select, we’ve seen these scenarios first-hand and always ensure that your legal team has complete clarity before you sign.

Step 4: Obtain a Cédula de Habitabilidad

The Cédula de Habitabilidad is Mallorca’s certificate of occupancy, and it’s one of the most important documents to check before you buy. It certifies that the property meets the island’s legal standards for habitability: safe installations for water and electricity, adequate sanitation, and suitability for the number of occupants.

Without a valid cédula, you could face significant obstacles:

• You may be unable to legally connect utilities such as electricity and water.

• You cannot register the home for rental use, either long-term or holiday rental.

• Banks may refuse to issue a mortgage on the property.

For example, a four-bedroom villa should carry a cédula certifying capacity for at least eight occupants. If the certificate is missing or outdated, obtaining a new one may require inspections or even renovation work to bring the home in line with current standards.

Important exceptions:

Not every property in Mallorca needs a cédula. Older rustic fincas or protected historic estates may be exempt if they predate the requirement or if the home is classed as a traditional dwelling. In these cases, other legal documents (such as the Escritura Pública or land registry entry) may suffice. However, the absence of a cédula limits how you can use the property, so it’s crucial to understand what applies in your case.

Step 5: Get an Energy Pass

Since 2013, every property for sale in Spain must have a valid Energy Certificate. This document rates the home’s energy efficiency on a scale from A (most efficient) to G (least efficient), much like the labels you see on household appliances.

For you as a buyer, this certificate offers two key advantages:

• It gives a realistic picture of the property’s running costs. Large villas with outdated systems may fall into the lower categories, meaning higher electricity bills—especially important in Mallorca, where cooling in summer and heating in winter can be substantial expenses.

• It identifies opportunities for improvement. If you plan to renovate, you can use the energy rating to decide whether to update windows, insulation, or heating/cooling systems to reduce future costs and increase comfort.

What you can expect in Mallorca:

• Modern luxury villas (built in the last 10–15 years): Often rated B–C, thanks to better insulation, modern HVAC systems, and sometimes solar installations.

• Renovated townhouses or apartments: Usually C–D, depending on the quality of the refurbishment.

• Traditional fincas or historic estates: Frequently E–G, unless they’ve been recently modernized. These properties may be charming, but their energy use can be significant.

The seller is legally responsible for providing a valid certificate before signing the purchase contract. The process is straightforward: an authorized architect or engineer inspects the property, measures energy consumption, and issues the rating, which remains valid for 10 years.

Step 6: Obtain an Escritura Pública

The Escritura Pública is the notarized deed of sale, and it is the single most important legal document in your property purchase. Signed before a Spanish notary, it confirms the transfer of ownership and proves that the seller is entitled to sell the property. Once signed, the deed is submitted to the Registro de la Propiedad (Land Registry), officially recording you as the new owner.

The escritura typically includes:

• The agreed purchase price and payment method

• Full details of the buyer and seller

• A legal description of the property

• Disclosure of any mortgages, debts, or encumbrances attached to the home

Practical details you should know:

• Who pays? By custom in Mallorca, the buyer covers the notary and registration fees. The seller covers the Plusvalía tax (municipal capital gains tax).

• How much? Notary fees usually range between 0.1%–0.5% of the purchase price, depending on property value and complexity. For a €3M+ property, expect fees in the low thousands of euros. Registration fees are generally similar in scale.

• Timeline: Once signed, the notary submits the deed electronically to the Land Registry, but full registration can take a few weeks to several months, depending on workload. You receive a certified copy (copia simple) immediately, while the official registered deed follows later.

Step 7: Get a Nota Simple

The Nota Simple is an extract from the Land Registry that gives you a precise snapshot of a property’s legal status. It may look like a short document, but it is one of the most powerful tools for due diligence before buying real estate in Mallorca.

A Nota Simple shows:

• Ownership details – confirming who legally owns the property and their right to sell it.

• Charges and encumbrances – mortgages, unpaid taxes, liens, easements, or rights of use that could restrict how you enjoy or alter the property.

• Classification – whether the land is urbano (urban), rústico (rural), or urbanizable (developable). This classification has major implications for what you can do with the property.

• Property description – size, boundaries, built area, and sometimes outbuildings, terraces, or swimming pools.

Why it matters:

• In one case we handled, the Nota Simple revealed that a seller’s finca was still carrying a mortgage that hadn’t been disclosed. Without this check, the buyer would have inherited a six-figure debt.

• For luxury estates in rural areas, classification as rústico often means strict building limitations. Buyers planning to add a guest house, expand the living space, or build a pool can be caught off guard if the classification doesn’t allow it.

Urban vs. Rustic — what buyers should know:

• Urban (Urbano): Properties on urban land, such as modern villas or townhouses, generally allow for extensions, renovations, and sometimes even new construction, subject to local planning rules. Utilities are easier to connect, and permits are faster to obtain.

• Rustic (Rústico): Traditional fincas or country estates often fall under this classification. While they can be spectacular, strict regulations may prevent you from expanding the living area, adding new structures, or even legalizing existing ones if they were built without permits. Pools, guest houses, or modern extensions may not be possible.

• Urbanizable: A middle ground, where land is designated for future development but may currently have restrictions. This status can change depending on municipal plans.

Step 8: Sign a Purchase Contract and Option Contract

Once due diligence is complete and you’re ready to move forward, the purchase process in Mallorca happens in two key steps: the Option Contract (Contrato de Arras) and the Purchase Contract (Contrato de Compraventa).

The Option Contract (Contrato de Arras):

This is the preliminary agreement where you secure the property and take it off the market. You and the seller agree on the final purchase price, and you pay a deposit of 10–15% of that amount. The contract then gives you a fixed window—typically 1 to 3 months—to complete the purchase.

• If you back out without legal cause, you lose your deposit.

• If the seller withdraws, they must return double your deposit as compensation.

This structure not only protects both parties but also gives you the breathing space to finalize mortgage arrangements, transfer funds, or complete remaining legal checks while knowing the property is reserved for you.

The Purchase Contract (Contrato de Compraventa):

This is the final contract, signed before a notary as part of the Escritura Pública. At this stage, you pay the balance of the purchase price—usually by banker’s draft (cheque bancario) issued by your Spanish bank, or occasionally via escrow arrangements if agreed in advance. The notary oversees the signing, verifies that payments are properly made, and ensures the transfer is legally binding.

Timelines in practice:

• Option contract signed with deposit: Property is reserved for you.

• 1–3 months: Timeframe to complete financing, finalize paperwork, and prepare funds.

• Escritura signed before a notary: Balance paid and keys handed over.

Why it matters:

In Mallorca’s luxury market, option contracts are critical because properties often move quickly. Without one, even a serious buyer risks losing the home to another purchaser while still arranging financing or due diligence.

Step 9: Consult with Mallorca Select

Buying a luxury property in Mallorca is not about chance — it’s about making the right decisions, at the right time, with the right people beside you. The process can be complex, but for serious buyers it is also an extraordinary opportunity: securing a home in one of Europe’s most coveted markets.

At Mallorca Select, we dedicate ourselves exclusively to clients who are ready to move forward. By working only with motivated buyers, we are able to focus our full attention on achieving the best result: finding the property that truly matches your lifestyle, your vision, and your long-term goals.

For over 15 years, we’ve been trusted advisors in the island’s high-end market, guiding transactions from €3M upwards with discretion and precision. Our clients rely on us not just for access to exceptional properties, but for the confidence that every detail — from legal checks to financial structuring — has been handled to the highest standard.