A non-resident sale in Mallorca is smoother when the seller prepares the legal file before accepting a deposit. Missing planning documents, title discrepancies and tax surprises are much harder to solve after a buyer’s due diligence clock starts.
Key points for the buyer
- Assemble title, planning, tax and community documents before marketing.
- Identify discrepancies and charges early.
- Budget for non-resident retentions and final tax filings.
- Use clear authority and payment arrangements if signing remotely.
Prepare the seller’s data room
Collect the current deed, Land Registry information, cadastral details, local-tax receipts, utility information, energy certificate, occupancy and planning documents, and community certificates and minutes where relevant. For houses, include licences and technical documents for pools, extensions and annexes.
A prepared file gives the seller time to correct an address, area, ownership or planning discrepancy without delaying the contractual completion date.
Charges, mortgages and co-ownership
Obtain an up-to-date mortgage payoff route and understand bank cancellation timing and costs. Review other registered charges, inheritance steps, usufructs or co-owner approvals. Every registered owner and necessary spouse or representative must be available with valid identification and authority.
If the seller is a company or estate, confirm corporate, probate and beneficial-ownership documents early.
Before you pay the deposit
Send us the property listing or the document you have been asked to sign.
Reservation and sale contract
The seller should promise only documents, conditions and completion dates that can be met. The contract must define the property and inclusions, deposit, default, vacant possession, charges, community and tax allocation, mortgage cancellation and any disclosed planning issue.
Do not conceal a known defect and assume a general ‘as seen’ clause will remove liability. Accurate disclosure and carefully drafted allocation reduce disputes.
Non-resident tax and retention
Spanish law can require the buyer to retain and pay a portion of the price where the seller is non-resident for tax purposes. That retention is an advance mechanism, not necessarily the final liability. The seller may need a subsequent return to calculate the actual result and claim a refund or pay a balance.
Municipal tax on the increase in urban land value may also arise, subject to the facts and current rules. Obtain a seller-specific estimate before agreeing the net proceeds.
Remote completion and closing the file
A power of attorney can support remote signing if drafted and formalised correctly. Agree secure bank details, currency conversion and how the net balance will be released. The lawyer should prepare a completion statement showing price, deposit, mortgage payoff, retention, taxes, fees and the seller’s net amount.
After completion, finish applicable tax filings, mortgage registry cancellation, utility and community notifications and retention recovery where due.
Official sources and further reading
This guide uses primary official sources. Rules and administrative practice can change, so the position should be checked for the exact property and date.
- Spanish Land Registry — information for property buyers ↗
- Balearic Tax Agency — property tax and valuation information ↗
- Spanish Cadastre — tax use of the reference value ↗
Important
This article provides general information, not legal or tax advice. Property title, planning, tax and contract outcomes depend on the documents, location, dates and parties in the individual transaction.