Buying Property in the Balearic Islands
The process of buying property in the Balearic Islands is relatively straightforward and not too dissimilar from that of other European countries/regions including the United Kingdom. This said, it is important to understand several considerations.
After you have successfully selected your desired property and your offer has been accepted, a purchase option contract will be drawn up. This contract will outline the details of the property, the names of the buyer and seller, the deposit, the agreed price and the date on or before which the contract must be completed. It is customary that 10% of the purchase price be paid at the time the contract is signed. At this stage it is strongly recommended to employ the services of an independent solicitor or “Abogado” as the contract is legally binding on both parties.
It is imperative that the property purchase is undertaken in a correct and legal manner thus the requirement for a solicitor. One of your solicitors principal duties is to make sure that the property is free from any outstanding debts, hidden charges or ownership discrepancies before you actually complete your purchase.
Buying Costs
It is very important to take into consideration the additional costs which will be incurred during your property purchase. You should expect these costs to be approximately as follows:
• Property Transfer Tax (IVA), payable by the buyer to the government when you purchase in the Balearic Islands. Previously the tax was set at 7%. As from 1st April 2012, new amounts have been introduced which are graded according to the purchase price as follows:
• Solicitors “Abogado” fees will be approximately 1% to 1.5% of the purchase price.
• Notary and other administration fees could amount to 2% of the purchase price.
Most important of all is to enjoy the process with our help and look forward to buying and owning your new property on these beautiful islands of Mallorca / Majorca, Ibiza, Formentera and Menorca.
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