This email address is being protected from spambots. You need JavaScript enabled to view it.
+34 689 492 445
Mimmi Andersson
Managing Partner/Real Estate Agent
This email address is being protected from spambots. You need JavaScript enabled to view it.
+34 658 492 737
What you can see listed on our website is just a small selection of our available listings, you can tell us in more detail what you are looking for by sending us an email.
We will contact you with property suggestions suited to your request.
This email address is being protected from spambots. You need JavaScript enabled to view it.
We offer a personalised service of finding the right property for you.
Using our vast connections, collaborating real estate agents, builders, and trusted sellers, we will present you with a selection of properties filtered to your needs. We can help you find the perfect property or investment project in Palma or any other area of the island.
Our service helps you save and manage your time better.
You only need one point of contact.
This email address is being protected from spambots. You need JavaScript enabled to view it.
Hi! We are ThinkPalma, a real estate service based in Mallorca.
We understand that each client has their own unique set of circumstances and aspirations, with some looking to purchase an exquisite place of their own, as well as those looking for business opportunities.
At ThinkPalma we recognise, listen and process your exact specifications before using our knowledge and expertise to find your perfect property.
We specialise in helping our clients make effective investments.
These frequently asked questions will cover the basics of what buying a property in Mallorca entails. This is intended as an introduction to investing on this beautiful island; we look forward to meeting you in person to tailor our services to your needs.
1. The buying proccess
When buying a property in Mallorca, it is important to have good legal representation to assist with the buying process. Particular attention should be paid to the history of the property, especially its financial status regarding pre-existing debts, and ensuring the person selling the property is the legal owner.
Moving forward, your lawyer will draw up an option contract defining the agreed buying price (including a deposit which is usually 10%), the dates of payments, when the actual purchase will be finalised and what exactly your money will get you (furniture, fittings for example). Properties can be sold through numerous agents, an option contract such as this reserves the property once the price has been agreed. This allows you to complete any outstanding financial and legal matters. If the buyer pulls out from the sale after signing the option contract, the buyer will lose any deposit paid. However, if the seller changes their mind, they may have to pay twice the deposit amount depending on the wording of the contract.
The next stage is preparing and signing the Escritura de Compraventa (public title deed), to be drafted by the lawyer and signed by both parties and their legal representation in the presence of a Spanish notary. At this point, the remaining payment is due. On completion, the notary will send details of the Escritura de Compraventa to the local land registry to inform it of the new owner’s identity. In approximately three months, the official Escritura de Compraventa will be returned to the buyer once it has been checked and registered.
2. Fees and taxes
When buying a property in Mallorca, you should allow 10 - 15% of the purchase price for the fees and taxes. Which, upon purchasing, can be categorised as follows:
I. TRANSACTION TAX / VALUED ADDED TAX VAT / IVA
An 8 - 12% transaction tax is applied to the sale of residential property in Mallorca. The tax is calculated according to the value of the property.
8% applies to the first 400,000€
9% for value over 400,000€ to 600,000€
10% for value from 600,000€ to 1,000,000€
12% for value over 1,000,000€ to 2,000,000€
13% for any value over 2,000,000€
That means a property that costs 850.000€ would be taxed 8% on the first part up to 400.000€, 9% on the 200.000€, and 10% on the 250.000€ part over 600.000€.
Newly built properties are taxed (IVA - Value Added Tax) at 10% at the moment of the transmission of a property, subject to VAT by public deed, the buyer is obliged to pay the STAMP DUTY TAX to the Balearic Tax Agency, which is generally 1.5-2% of the purchaser price (1.5% up to 1,000,000€ and for properties from 1,000,000€ upwards is 2%). This tax must be paid within one month starting from the date of the signature of the public deed.
Buying land in Spain, commercial premises or parking spaces in garages results in an increase to 21%IVA
II. PLUSVALIA
This tax, in general, is dependent on the increase in value of the land between the moment of its purchase and its sale, and it is payable to the local town hall. This is based on a few key variables. a) the particular area where the property is located, b) the surface area of the plot, c) the cadastral value, and d) the date of the previous title deed. By law, the responsibility to pay this tax is on the seller; however, some sellers still ask to be paid by the buyer.
III. NOTARY FEES
These are set according to a fixed scale depending on the official value of the property. The notary will send details of the title deed (Escritura) to the local land registry to inform it of the identity of the new owner. It is a legally required step in the process and around 1% should be allowed for notary and property registry fees.
IV. LAWYER’S FEES
Around 1% of the property's purchase value should be allocated as lawyer's fees.
V. MORTGAGE
In case of getting a mortgage, loan starting fees may apply according to the bank.
3. Annual taxation
Property ownership in Spain brings annual taxes. We recommend you have a tax adviser, known as gestoría to handle annual tax payments, ensuring deadlines are met. Through our working relationship, we can help to advise on tax advisors who are well placed to assist. The main annual tax is IBI (land tax). The tax base is the catastral value of the property and the rate varies from 0.4% to 1.1% depending upon the region you’re investing in. The amount varies, but it ranges from 200 Euros to 2000 Euros per year depending on the value of the property.
4. Lawyers
Lawyers are not a legal requirement, however having professional, local and expert legal advice is strongly adviced as it will ensure the process of investing is a smooth one. It also ensures that you are well protected and well informed on what exactly you are buying, and if there are any major works planned in your soon-to-be new community that could affect you. Your lawyer will ultimately be the first port of call for all legalities related to your purchase: from a national Spanish identity number (NIE - that is obligatory to have during a property purchase) to handling the payment of the customary 10% deposit and accompany you to the notary for the final exchange of contracts. Your lawyer will inform you about taxes due on your property both during and after the purchase. Your lawyer will ensure that the property is legally yours and you can move forward without any unwanted debts. Strong legal representation allows for peace of mind in what is a complex process. The costs of a lawyer is usually around 1% of the purchase price.
We can help to advise on reliable legal representation with a proven track record of good client feedback.
5. Buying & financing a property - cost breakdown
As with all the topics addressed in this section, a personal touch is always best considering the personal and financial investment into moving to this island. As such, we recommend that you contact us with any questions you may have and we can answer on a personal basis and find the best solution for the next chapter in your life, on this beautiful Mediterranean island.
As with all the topics addressed in this section, a personal touch is always best considering the personal and financial investment into moving to this island. As such, we recommend that you contact us with any questions you may have and we can answer on a personal basis and find the best solution for the next chapter in your life, on this beautiful Mediterranean island.
Palma is Mallorca's vibrant capital, stylish and intimate, yet bursting with life. Half of the island's population lives here, lively all year round with luxury hotels, trendy restaurants, cafes, shops and nightlife as well as a thriving art scene. Being within a 15-minute taxi ride from the airport, it makes for the perfect city break.
Located in the south of the island, Palma looks out over the Mediterranean sea. Whilst there are many enchanting parts of the city, the main attractions and shops are situated around the massive Gothic Cathedral down by the seafront. This area, known as Palma’s old town, is full of ancient passages, historic monuments and charming architecture. Here you will find a variety of sights, quirky cafes, galleries, and boutique shops. Thanks to these attractions all being packed within a square kilometre, the old town is easy to explore.
Palma's current image owes much to the last two hundred years. The two iconic roads of Passeig des Born and Las Ramblas were built in the 19th century on a dried-up river bed. The defensive city walls which once surrounded the city were pulled down to create the ring road of Las Avingudas and the waterfront highway and promenade Passeig Maritim were only reclaimed from the sea in the 1950s.
The city boasts an enormous harbour which begins in front of the cathedral and borders the west. The cyclist and pedestrian-friendly promenade stretches all the way to the ferry port and cruise terminal (which is located about 3.5km from the old town), making it perfect for a stroll.
