The answer is simple: No, it is not!! Of course there is paper-work to be signed and handed over, but it is very much the same process as when buying a property in your own home country. We do recommend you to contact a good lawyer who deals with purchase issues. If you wish us to assist you in choosing a lawyer who speaks your language, we will be happy to help you.
If you are a non-resident in Spain the first step in the purchase-process is to obtain a NIE-Number (Numero de identificacion extranjero) which will be your tax identification number in Spain.We can assist you with this and so can your lawyer. If you are not on the island when applying, a notarized copy of your passport must be presented and it could take 20-30 days to get the number through. If you are on the island you will have to go to the Police-department for non-residents with a copy of your passport and the original passport. As there are a few formalities, we suggest you contact your lawyer or us for assistance! The NIE- number must be presented at the final signing of the deeds.
When you have found the property you wish to buy, the procedure is as follows:
The following documentation is required by Majorcan banks:
If you are a self-employed or a limited company, copies of the last 3 years audited accounts must be presented, as well as a certificate from the accountant confirming salary/dividends/net profit figures for the last 2 years. A copy of your last tax-return must also be presented. Please remember that the more proof of earnings that you can provide,, the higher percentage the bank will consider lending you. Normally a non-resident will be offered between 60-70% of the official valuation amount and a resident will be offered between 70-80%, depending on age and earnings. If you are granted a mortgage, a bank account will be opened and an official valuation will take place. This charge will be debited the client.
If you are purchasing through a real estate agents, their fee is paid by the seller. The property transfer-tax is 8% (when purchasing a new-built apartment or villa or a re-sale. There is also a legal acts stamp-duty of 1% of the value of the property. Furthermore, it is not unusual in Mallorca that the seller pays the plus valia (capital gains tax) of the vendor. Make sure you discuss this with your lawyer! The charges for the notary and the property-registry are also to be paid by the buyer. All in all the charges are approximately 10-12% of the value of the property.
Annual property tax (IBI) and garbage-collection (basura): Paid yearly to the town hall. Each town-hall have their own tax-laws. A resident, as well as a non resident, property holder in Spain pays income/wealth tax once a year. If you live in a community, there will be a monthly/quarterly or yearly charge to be paid, please ask the president of the community for more information. In many communities the water is included in the community-charges. Of course electricity, phone, insurances, etc. will be additional.