36 · The ULI & LISA Roadmap: From Search Profile to Handover of the Keys
*Think of this chapter as the bracket around the entire glossary. It arranges the individual stages of a Mallorca purchase in their real-world chronological order and, at each stage, sends you straight to the relevant specialist chapter. Use it in two ways: once to get an overview before you begin — and once as a running checklist you tick off point by point as the process unfolds.*
Three numbers and one principle to internalise: On a resale property, the ancillary acquisition costs add up to roughly 10–13 %; on a new build, roughly 12–13 % — budget for this from day one. In our experience, expect 2–4 months to pass between the start of your search and the handover. And the principle that protects you from almost everything: legal and architectural support belongs on your side — and it has to be in place before you sign, never only afterwards.
Phase 0 · The Homework Before Your First Click#
Long before any brochure crosses your desk, you lay the foundation. If any one of these elements is missing, you will find the doors closed at the notary, the bank, and the tax office.
| Step | What it is | Detail |
|---|---|---|
| Apply for your NIE | Tax/foreigner number — mandatory for the purchase, the bank account, and tax | → 02 |
| Spanish bank account | for taxes, utilities, direct debits | → 03 |
| Budget incl. ancillary costs | factor in ~10–13 % on top of the purchase price | → 04 |
| Sort out financing | LTV for non-residents ~60–70 %, FEIN | → 15 |
| Nationality check | Non-EU? Plan early for the Military Permit on fincas (rural properties) | → 14 |
| Have your funds ready | prepare proof of the source of funds, FX broker (non-euro buyers) | → 03 |
Phase 1 · Survey the Market and Separate the Wheat from the Chaff#
This is where the actual selecting begins. At this point it becomes clear whether you are even shortlisting the right properties — and whether you can decode a listing rather than fall for the agent's spin. You need four competencies for this:
- Decode the listings:
m² construidos(built square metres),útiles(usable square metres),a reformar(in need of renovation),primera línea(front line / waterfront) — you have to assign such vocabulary precisely, or you'll be comparing apples with oranges → 29 - Identify the property type: Apartment? Villa? A finca on rústico (rural land)? Or merely
nuda propiedad(bare ownership)? This changes everything downstream → 17 - Assess location and use potential: What zoning applies in the municipality, and does it permit ETV (tourist holiday-rental licence) at all? → 11 · 12
- Place the agent: Are they listed in the Balearic register under Ley 3/2024? As a rule, the commission is paid by the seller's side → 16
The most expensive false assumption of all: "There's a cédula (habitability certificate), so the finca can go on Airbnb." That is not true. Anyone who wants to let on a tourist basis additionally needs an ETV or Agroturismo, including the allocated places (plazas) → 11 · 27.
Phase 2 · Check, Check, Check — Before Every Single Euro#
This stage allows no compromise. What you work through now spares you nasty surprises; what you skip will catch up with you later. The line is clear: not a cent moves while even one of these points remains open.
| Check | What to look for | Detail |
|---|---|---|
nota simple (Land Registry extract) | owner, charges/mortgages/embargos (seizures) — is it "libre de cargas" (free of charges)? | → 02 |
| Legality | building/first-occupancy licence, fuera de ordenación (out of planning), illegal extensions | → 09 · 21 |
cédula de habitabilidad | present/valid? (utilities, ETV, resale all depend on it) | → 09 |
| Cadastre vs. reality | reconcile areas/rooms/extensions | → 02 |
| Community of owners | freedom from debt, derramas (special levies), estatutos (statutes) (ETV ban?) | → 05 · 35 |
| Finca extras | right of way/access, well/water rights, is the wastewater legal? | → 26 · 21 |
| Utilities | legal electricity/water connection (no connection without a cédula!) | → 26 |
Phase 3 · The Deposit — Where Haste Costs the Most#
When you sign the preliminary contract, you bind yourself legally. In our experience, this is precisely where poorly prepared buyers burn their money. Two things decide between gain and loss:
- With the
contrato de arras(deposit contract), pin down the variant first.penitencialesmeans a forfeit deposit — if you walk away, your deposit is gone; withconfirmatoriasthe position is different. Explicitly anchor freedom from charges, the cédula, financing and the Military Permit as grounds for withdrawal. And: the money belongs in the notary's escrow, not in the seller's hands → 01 - Draft the financing condition so that it is watertight. If it is vague, in the worst case it can cost you the entire deposit → 01
Phase 4 · The Notary Appointment (escritura) and the Final Payment#
At the notary, ownership formally passes to you. So that nothing catches you off guard on the day, you should know the procedure in advance:
- What happens at the appointment: the charges are checked, then comes the reading-out and the
manifestaciones(declarations), then the final payment (viacheque bancario(banker's cheque) or transfer), and finally the handover of the keys → 01 · 02 - Not on site? The deed can still be executed — by power of attorney, i.e.
poder notarial→ 02 - Is the seller's side a non-resident? Then, as the buyer, you withhold the 3 %
retención(withholding) → 06 - Are you married? You must declare your matrimonial property regime → 01
Phase 5 · The Deadlines That Start Ticking Immediately Afterwards#
Keys in hand is not the end — clocks now start running. You must not let any of the following slip:
| Step | Deadline | Detail |
|---|---|---|
| Pay the tax | ITP/AJD (Modelo 600) 30 business days | → 04 |
| 3 % withholding | Modelo 211 1 month (non-resident seller) | → 06 |
| Land Registry entry | via gestoría (administrative agency) | → 02 |
| Re-register the cadastre | cambio de titularidad (change of title holder) | → 02 |
| Utilities | change of account holder for electricity/water | → 26 |
| Insurance | seguro de hogar (home insurance) (with a mortgage: fire cover is mandatory) | → 28 |
| IBI transfer | settle pro rata | → 05 |
Phase 6 · Living with the Property — and What Eventually Comes Up#
With ownership you take on a lasting responsibility. It ranges from recurring annual charges, through the question of letting, to matters that only land on the agenda years later — succession, say, or a resale.
- What you pay on an ongoing basis in taxes and costs: IBI, refuse charge,
comunidad(community fees) and the IRNRrenta imputada(imputed income tax) — the latter applies even for purely personal use → 05 · 07 - If you want to let: the prerequisites are an ETV licence, the allocated places (plazas), civil-liability (RC) insurance and registration of your guests → 11 · 28
- If you want to renovate: what becomes relevant is the renovation IVA at 10 %, the licence and any possible subsidy → 25 · 26
- If you want to emigrate and stay: the issues are residency, health insurance, the car/ITV (vehicle roadworthiness test) and schooling → 19 · 20 · 30
- If the property is transferred — by inheritance or gift: here the Balearic foral law applies, with a 100 % ISD bonificación (inheritance & gift tax relief) → 08
- If you sell again: the capital-gains tax can be optimised (reinvestment, over 65), and the plusvalía (municipal land-value tax) belongs in the calculation → 31 · 06
- If a relationship ends: then the dissolution of joint ownership, the
extinción de condominio, is on the table → 34
The 12 Red Flags — When to Hit the Brakes Immediately#
The moment any one of these constellations appears, it is not a detail but your stop sign for closer scrutiny:
1. charges or embargos that appear in the nota simple 2. a cédula that is missing or expired 3. illegal buildings on rústico protegido (protected rural land) — the demolition risk never goes away 4. you want ETV, but the zone or the community excludes it 5. non-EU and a finca, without the Military Permit being planned for 6. an access route or right of way that is not secured 7. a well or electricity connection that is illegal 8. a valor de referencia (reference value) that lies above the market price (a tax trap) 9. someone demands "B-money" (off-the-books cash) 10. instead of full ownership, you are offered only nuda propiedad 11. a casita de aperos (tool shed) sold as a "dwelling house" 12. a concession with a short remaining term (e.g. a mooring berth)
→ More depth in 21.
The one sentence that stays with you: Every stage has its own chapter. And if you take away only two things: no money before the nota simple has been checked — and no signature without your own lawyer having seen it.