Buying an apartment in Palma de Mallorca as a non-resident is straightforward, as long as you know the steps and the costs. Spain is one of the most welcoming markets in Europe for foreign buyers, there are no nationality restrictions, and the process is well-trodden by buyers from Germany, Switzerland, Austria, the UK, Sweden and beyond.
This is the no-fluff guide we wish we had read before our first apartment in Palma.
1. Get your NIE first
The NIE (Número de Identidad de Extranjero) is the Spanish tax identification number for foreigners. You will need it for absolutely everything, signing the deed of sale, opening a bank account, paying taxes, even setting up the electricity contract.
You can apply for an NIE in two ways:
- At a Spanish consulate in your home country, slower (3-6 weeks) but no need to fly to Spain just for paperwork
- In Spain in person, at a Foreigners Office or police station, often faster but you need an appointment
Cost: a small administrative fee (around €10).
A good lawyer or our team can help organise the whole NIE process by power of attorney, so you do not need to fly twice.
2. Open a Spanish bank account
You will need a non-resident bank account to:
- Pay the deposit and final balance to the seller
- Pay taxes, notary fees, utility bills
- Set up your community fees (gastos de comunidad)
Most major Spanish banks (Sabadell, BBVA, Caixabank, Santander) offer non-resident accounts. Bring your passport, NIE and a recent payslip or proof of income. Some banks open the account remotely, others require one in-person visit.
3. Find your apartment (this is where we come in)
The actual property search is where most buyers feel out of their depth. Some honest advice:
- Ignore the gross asking price for now, focus on price per m² for the building, the floor, the orientation, and recent comparables
- Always insist on seeing the Nota Simple (an official property record from the Registry) before making an offer
- Visit the apartment at different times of day if possible, central Palma streets can sound very different at 3pm and 11pm
This is exactly the work we do for our buyers. We only sell apartments in Palma, so every street, every building, every typical price is in our heads.
4. Make an offer and sign the contrato de arras
Once you and the seller agree, the formal step is the contrato de arras (deposit contract). You typically pay 10 % of the purchase price as a deposit. If you back out, you lose the deposit. If the seller backs out, they pay you double.
This step is binding. Your lawyer should:
- Confirm the property is free of charges, mortgages and liens
- Confirm there are no community-fee debts attached to the apartment
- Confirm planning compliance and any pending fines from the city
5. The real cost, budget 10 to 12 % on top
The asking price is rarely the final price. Plan for 10 to 12 % extra in taxes and fees:
- ITP (Property Transfer Tax for resale apartments), 8 to 13 % in the Balearic Islands, depending on the price band. The vast majority of apartments in Palma fall in the 9-11 % range.
- VAT (10 %) if you buy a brand-new apartment (rare in central Palma), plus Stamp Duty (AJD) of around 1.2 %.
- Notary fees: typically 0.1 to 0.5 % of the price.
- Property registry: 0.1 to 0.25 %.
- Lawyer fees: roughly 1 % plus VAT.
Example: a €750,000 apartment in Santa Catalina will land at roughly €825,000-€840,000 once you include all taxes and fees.
6. Sign at the notary, get your keys
The day of the closing, you and the seller meet at the notary in Palma. The notary reads the deed, you transfer the final balance, you receive the keys. The whole appointment takes about 60-90 minutes.
If you cannot attend in person, your lawyer can sign on your behalf with a power of attorney. Many of our DACH-region buyers use this option to avoid an extra trip.
7. After the keys
Within 30 days of signing, your lawyer should:
- Pay the ITP / VAT / stamp duty
- Register the deed at the Property Registry
- Update the cadastre (catastro)
- Notify the building community of the new owner
How long does the whole thing take?
A typical Palma apartment purchase from offer to keys is 6 to 10 weeks. With a clean property, an all-cash buyer and proactive lawyers, it can be done in 4 weeks. With a mortgage application, plan for 10-14 weeks.
A final word on mortgages for non-residents
Spanish banks lend up to 60-70 % of the purchase price to non-residents (vs. 80 % for residents). Interest rates are competitive in 2026, well below what you would expect for a foreign-currency property loan. If you are considering a Spanish mortgage, start the application early; it is the slowest step in the process.
If you want a second opinion on a property you are considering, or want us to walk you through the full process for your specific case, we are happy to meet for a coffee in Palma. No pressure, no hidden agenda, just two founders who only sell apartments in this city.