Top Tips for UK Buyers in Mallorca

Top tips for buying a listing in Mallorca / Spain

• Research and follow local laws on buying and renting out listing
• Always get written confirmation of what has been agreed in any negotiations and always insist on a paper (preferably not electronic) receipt for monies paid
• Check that the seller or listing developer owns the title deeds to the listing or land and can transfer them to you. If buying brand new, or partially built, from a developer, check that the title deeds for the listing in question actually exist
• Check that the deeds to the listing or land have not been offered as collateral for any loans
• Check whether the owner has outstanding utility bills, local tax demands etc that you may be liable for on purchase of the listing
• Check that all utilities e.g. water, sewage and electricity, are connected and that you will be able to use them
• Talk to other listing owners in the area or on the development to establish if there are any issues you should be aware of before purchasing (such as floods in winter, lack of water or electricity supplies in summer)
• Ask the developer to show you some projects that s/he has completed and talk to owners of listings on these developments to see if they have had any problems
• Establish whether the developer has outstanding commitments to utility suppliers to bring water, sewage, electricity etc to the development
• Consider drawing up a will in the country you own your overseas listing in, to ensure that those you wish to inherit your listing and assets overseas actually do so as inheritance laws may differ to that of the UK. Having made all your enquiries, ask yourself if you are satisfied in your own mind that you can go ahead with the purchase of the listing in question without encountering problems. If not, make more checks.

Additional Fees

• Fees for a financial adviser to manage your tax affairs both in the UK and overseas. You may be liable to pay tax if the listing is sold.
• Fees for a chartered surveyor or quantity surveyor
• Mortgage fees – these may include a mortgage broker fee, an arrangement or opening fee, and an administrative fee for the bank to appoint a representative to manage payment of taxes and inscription of the title in the listing register
• International bank transfer fees, which you should discuss with your bank in advance
• Bankers’ draft/bank-guaranteed cheque fee, which you should discuss with your bank in advance fees to arrange power of attorney if required furniture, shipping and insurance costs
• Legal fees to make a will, which may be mandatory in some countries translation fees connection fees for water, sewage, electricity etc

As in the UK, once you have bought the listing there will be various ongoing costs, which may include:

• Annual listing tax
• Refuse collection and mains drainage fees
• Income tax or income tax for non-residents
• Community fees, if your listing is part of a larger listing development of estate

We will provide guidance and assistance every step of the way…