Cost
Ancillary purchase costs when buying property in Mallorca
Once you have found your dream property in Mallorca, it's time for financial planning.
Can I purchase the property from my own funds? Do I need partial financing? What costs are incurred in addition to the agreed purchase price? And this brings us to today's topic: the ancillary purchase costs when buying real estate. It is important to observe and calculate the value added tax, the real estate transfer tax and the stamp duty.
In addition to the acquisition taxes, there are other ancillary purchase costs, namely for the notary, the land register, the Gestoria and possibly for the broker and a lawyer.
1. Notary costs
The costs of the Spanish notary are based on a binding fee table and amount to between 0.1% and 0.3% of the purchase price. Additional copies and copies as well as any translation services provided will incur additional fees.
2. Register costs
The property register (land register) also has a binding fee schedule and table. For the property register, you should calculate fees between 0.1% and 0.2% of the notarized purchase price.
3. Gestoria costs
Unlike in Germany, the notary does not take care of the registration and monitoring of the purchase process after notarization. In Spain (if no lawyer is instructed), this is done by an administration company, a so-called Gestoria. For example, Gestoria handles the payments of real estate transfer tax and legal transactions with the property register (deletions and entries). This will incur processing fees of between €200 and €1,000 (depending on the complexity of the case).
4. Lawyer's fees
Since Spanish notaries have a lower obligation to check and provide information than their German colleagues, it often makes sense to involve a Spanish lawyer. Lawyers specialising in real estate sales usually agree on a fee of between 0.5% and 1% of the purchase price for their work, depending on the complexity of the case. In the case of difficult structuring issues, such as the clarification of preliminary inheritance and family law issues, cross-border tax issues and corporate law issues, the lawyer's fee will also be significantly higher than this average rate.
5. Brokerage Costs
In Spain, the broker is regularly paid by the seller, unless the parties have expressly agreed otherwise. In Mallorca, the rate of the broker's commission is between 5% and 6% plus VAT (IVA) of the agreed purchase price.