Mallorca Property Guru

Guide For Buyers of Property in Majorca

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Buying a property in Majorca can be complex with a lot of different elements to consider we are here to help.

Buying a property in Majorca as a citizen of a EU member state, to buy a property and open a bank account for the charges for local taxes and utility bills you will need a NIE more formally known as the Número de identidad de extranjero.

The NIE is a tax identification number used to identify you and record the taxes paid to the Spanish Tax authorities.

Applications can be made at Spanish consulates in the buyers home country, by a representative in Spain or in person.

An address in Spain is required for notifications during the period of the application so if you are not able to provide and address employing an accredited representative such as a lawyer or company which offers this service is normally the easiest option.

Buying a property in Majorca as a citizen of a Non EU member state, which includes citizens of the United Kingdom.

The NIE is also required, as the process can be more complex it is recommend to use the services of a lawyer or an accredited representative.

Do you need a Spanish military permit to buy a property in Majorca?

The Spanish military permit originated in a law passed in 1975 in relation to areas or installations of interest to national defence. This law made it compulsory for buyers from overseas who wished to acquire a property in some regions of Spain to obtain a permit from the Ministry of Défense to complete any transaction, Majorca and all the Balearic Islands are included in the list of regions were a military permit is required.

Despite the law dating from more than 45 years ago, it is still currently in force in over 1.500 municipalities in Spain which are located within the “Areas with restricted access to foreigners” specified in the 1975 law. On the 1st of January 2021, the United Kingdom officially left the European Union, and their citizens became non-EU Citizens.

However, it is important to emphasize that it is only necessary to apply for this permit if the foreign buyer wishes to acquire a property on rural land since the law does not apply to the purchase of a house, apartment, villa, or plot on urban land.

Even though it is not complicated to obtain a Spanish military permit once all the paperwork has been submitted, it could take up to four months for a foreign applicant to receive it. Hence the importance of starting the process as soon as possible to be in time to buy the property in the required time.

The Military Permit applies even to those how already have a property in Spain but are non-EU Citizens, if you are selling a house in Spain to buy another property and are not a citizen of an EU state you may need a Military Permit to buy.

Is a Residency Golden Visa for Spain a good option?

Is a residence permit issued to non-EU citizens who make a significant investment in Spain, such as buying real estate, investing in a company, or create employment opportunities.

Investment in a real estate property the investment amount is at least €500,000 it is officially known as Residency Visa for Acquisition of Real Estate (RIV)

The Golden Visa offers residency but that has tax implications as a permanent resident of Spain. We recommend you speak with a lawyer about either option. We can recommend lawyers please contact us using the form on this page.

Urban v Rural Both urban and rural properties in Majorca have different planning regulations applied to them, generally the planning regulations which are applied to rural properties are more complex.

Many rural properties are partly illegal or have illegal elements.

The same can be said of urban properties but the solutions are normally easier.

The basic documents required by the buyer and their lawyer at the sale of a property, the documentation for the sale of some properties is far more complex.

Many lawyers will require most of the following documents before a sales option is written and signed, by buyer and seller.

They may agree to except only the property deed and catastral documents for properties of great age, or which have been owner for many years by the same family which don’t not have any resent paperwork.

A sales option includes details that have been agreed between buyer and seller as to the outstanding documents need for a sale, sets a time frame for the seller to produce them and an amount as a deposit for the sale which withdraws the property from the market. These are a general guide, more detailed explanations for rural properties, projects, new builds, contact us.

Obligatory
1) Property title deeds Escritura and in the case of an inherited property change of title documentation.

2) Catastral Registration document of the property Nota Simple.

3) Last receipt for the local council tax IB´s. (Urban Properties) Impuesto sobre Bienes Inmuebles.

4) Last receipt of rubbish taxes. (Urban Properties) Impuesto de Recogida de Basuras.

5) Contracts in the owner’s name for, water, power, gas, telephone… Not in the name of a tenant.

6) Final bills for any services, water, power, gas, telephone in the owner’s name not in the name of a tenant.

7) Certificado de Habitabilidad in force from the date of issue the certificate is in force for ten years it states that the property is recognised as a living space, states the number of people who may live in the space. Rural properties without the certificate can be denied a connection to the electrical supply, but a rural property having a certificate does not affect its legality a rural property with the certificate can still be completely or in part ilegal. Also known as a Cedula. Older houses which have never had a Cedula which is common in villages. The formula is to apply retrospectively for a “Cedula Carrencia” × This normally requires an architect presenting documentation to the relevant town hall and can take sometime.

8) Eficiencia certificado de Energia, A certificate which calculates the amount of energy used by a property each year rated from A to F In the case of buildings for reform this is not obligatory, but most buyers’ lawyers will want a copy and do consider it obligatory. ×

9) Certificado de no existir infracciones urbanísticas, a notification or certificate from the town hall that there are no local taxes, fines, or outstanding files for planning violations against the property. With rural properties this can be a Certificado Urbanística a review of the plans and applications for building licences by the town hall which shows that the property has been built as stated in the licence applications and that the town hall agrees that the licence has been completed correctly and that the property is legal in its present form.

10) Expediente de Dominio due to a change in the law in 2015. When buying with a mortgage the m2 described on the Cadastral Registration document of the property, must coincided with the m2 described in the Título de propiedad (Escritura)…(deeds). Or the notary may not legally sell the property. A survey is required to resolve this. It, however, does not apply where a mortgage is not required.

11) A Certificado de Antigüedad a certificate of the age of a house is the legal and official document that indicates the date on which the construction of the house was finished. When buying a property to reform this is particularly important as information is gathered from aerial photographs from 1956 onwards. The town hall may restrict the reform of parts of a property is it cannot be shown to be pre-existing date on which planning laws changed effecting the occupation level permitted on urban and rustic plots.

Apartments

12) Only applicable to apartments the ITE is a survey of the conditions of a whole apartment building. The community of residents is required to request and then act on the results of the survey or be fined. It applies to buildings of more than 50 year in age.

13) Apartments in communities of owners, a certificate from the president or administrator of the community stating that the present owner has made all payments to date and has no outstanding dues to pay to the community.

If you are buying a property which has been reformed the owner may also need to provide you with the licence granted for the reform work and the Certificado fin de obra.

If you are buying a property which is registered for a particular activity, such as licenced as a holiday rental ETV, or as a shop, café, hotel the owner will need to provide more documentation required by your lawyer.

× Please note in the case of 7) & 8) these certificates can be wavered when a property is in poor condition and doesn’t not have a bathroom or kitchen in other words is not a habitable dwelling, but this must be recorded in the option to purchase contract.

But the focus must then be on 9), 10) and 11) proof that the property has no outstanding fines or planning problems and the m2 registered in both the deeds and the land registry is correct. And proof of the legality of all parts of the construction is vital if you wish to apply for planning permission.

If you have any doubts, it is always possible to make an Informe report with the town hall associated with the property regarding any project you might wish to make, an Informe is a list of questions asked by a Technical Architect (Aparejador) at the town hall.

The Informe will give you a guide to the possibilities and explain what may not be possible. Depending on the number of details and type of enquire your making costs of an informe starts at less than 400€ for a verbal consultation a relatively low cost for very valuable information.

For more information about the costs of purchasing taxes and fees as well as the purchase of rural properties, projects, and properties for reform

Contact us if you have questions about buying a property in Majorca.

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