Comprehensive Guide to Selling Property in Mallorca

Selling a property in Mallorca requires careful planning and a solid understanding of local laws, taxes, and market conditions. With the right guidance, the process can be smooth and profitable. This guide provides you with all the essential information to help you sell your property efficiently and in compliance with Spanish regulations.

1. The Escritura Publica and Nota Simple

• Escritura Publica: The title deed of your property must be in order before the sale. This document proves ownership and contains critical details about the property, such as its description and any encumbrances (e.g., mortgages or liens).

• Nota Simple: A summary from the Property Registry that verifies ownership and highlights any debts or legal claims against the property. Prospective buyers often request a Nota Simple as part of their due diligence.

Tip: Ensure your Escritura Publica reflects the actual state of the property. If any extensions or modifications have been made without proper permits, these must be addressed before listing.

2. The Energy Efficiency Certificate

Spanish law requires sellers to provide an Energy Efficiency Certificate (Certificado de Eficiencia Energética). This document rates the property’s energy consumption and must be issued by a licensed professional.

Key Points:

• This certificate is mandatory for advertising the property.

• Failure to provide it can result in fines or delays.

3. The IBI Receipt

The Impuesto sobre Bienes Inmuebles (IBI) is an annual municipal property tax. As the seller, you must ensure all IBI payments are up to date.

Key Points:

• Provide buyers with recent IBI receipts to confirm compliance.

• Any unpaid IBI taxes could lead to complications during the sale.

4. Community Fees

If your property is part of a community of owners, provide documentation showing that all fees are paid up to date. Buyers may also request:

• A copy of the community statutes.

• Minutes from the latest AGM (Annual General Meeting).

• Proof of no pending debts with the community.

5. Capital Gains Tax

When selling a property in Mallorca, you may be liable for capital gains tax (CGT) on the profit made from the sale.

Key Points:

• Non-residents: Pay 19% on the profit.

• Residents: Pay between 19–23%, depending on the profit amount.

• Some exemptions may apply, such as reinvesting in another primary residence.

Tip: Consult a tax advisor to optimize your tax liabilities.

6. Plusvalía Tax

The Plusvalía Municipal is a municipal tax based on the increase in the cadastral value of the land since the property was last sold.

Key Points:

• The seller is responsible for paying this tax.

• Your lawyer can calculate the exact amount by visiting the local municipal office.

7. 3% Retention for Non-Residents

If you are a non-resident in Spain, the buyer must withhold 3% of the sale price and deposit it with the Spanish tax authorities as a guarantee against your future tax liabilities.

Key Points:

• The 3% retention ensures the seller pays any applicable CGT.

• If no tax is owed, you can apply for a refund of this amount.

8. Required Documentation

To avoid delays, prepare the following documents before listing your property:

• Escritura Publica (Title Deed).

• Nota Simple from the Property Registry.

• Energy Efficiency Certificate.

• Latest IBI receipts and community fee statements (if applicable).

• Proof of utilities payments (electricity, water, internet).

• Copies of any recent renovation permits.

• A floor plan of the property.

9. Choosing the Right Agent

Partnering with an experienced real estate agency like Only Mallorca is key to a successful sale. We provide:

• Accurate property valuation based on market trends.

• High-quality marketing materials, including professional photography and videography.

• Strategic online and offline advertising to target the right buyers.

• Guidance through the legal and financial aspects of the sale.

10. Marketing Your Property

Only Mallorca ensures maximum exposure for your property through:

• Listings on leading real estate platforms in multiple languages.

• Targeted advertising campaigns across social media and Google Ads.

• Exclusive access to our international client database.

Tip: Declutter and stage your property for viewings. First impressions matter.

11. The Option Contract

Once a buyer is interested, an Option Contract (Contrato de Arras) is signed. This agreement secures the deal with a 10% non-refundable deposit from the buyer.

Key Points:

• If the buyer backs out, the seller keeps the deposit.

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

12. Completing the Sale

The final step is signing the Escritura de Compraventa (Sales Deed) in the presence of a Notary Public.

Process:

• The buyer pays the remaining balance of the purchase price.

• Ownership is transferred, and the sale is registered at the Property Registry.

• The Notary ensures the legality of the transaction but does not represent either party.

13. Costs of Selling

The seller incurs the following costs:

• Agency Fees: Typically 5% of the sale price (plus VAT) for non-exclusive agreements or 4,5% (plus VAT) for exclusive agreements.

• Plusvalía Tax: Based on the increase in the property’s cadastral value.

• Capital Gains Tax: Varies based on residency status and profit made.

• Legal Fees: If you appoint a lawyer, expect to pay around 1% of the sale price.

14. The Role of a Lawyer

A lawyer will ensure all legal and tax obligations are met. Their responsibilities include:

• Drafting and reviewing contracts.

• Calculating and arranging tax payments.

• Ensuring all documentation is in order for a smooth transfer.

15. Tips for a Successful Sale

• Be realistic with pricing: Overpriced properties tend to sit on the market longer.

• Ensure legal compliance: Address any unregistered extensions or modifications.

• Stay organized: Have all documents ready before listing.

Why Sell with Only Mallorca?

With over a decade of experience in Mallorca’s luxury property market, Only Mallorca combines local expertise with an international client base. We are committed to providing a seamless selling experience, ensuring your property reaches the right buyers at the right price.

Contact us today to discuss your property and start the selling process!