If you want to buy in Mallorca, you'll need three things in this order: a NIE, a Spanish bank account, and a clean tax setup. Here's how it works — without accountant-speak.
1. What the NIE is and why you need it
The NIE (Número de Identificación de Extranjero) is the Spanish tax and identification number for non-citizens. Without it, nothing moves in Spain:
- You can't sign a purchase contract
- You can't open a Spanish bank account
- You can't pay your electricity, water or community fees
- You can't file taxes — which you must, as a property owner
The NIE is a lifetime number, you only apply once. It doesn't replace your passport, it sits alongside it.
2. Three ways to apply
Path A — In person in Mallorca
The Oficina de Extranjería in Palma (Calle Pere Llobera, 16) takes appointments. You'll need:
- Passport + copy
- Form EX-15, filled in
- Receipt for fee Modelo 790 código 012, around €9.84 (payable at any Spanish bank)
- A written reason: typically a compromiso de compra (reservation contract) or a lawyer's mandate
Appointment wait: 2–6 weeks. Processing on the day: 30 minutes to a few days.
Path B — At the Spanish consulate in your home country
Spanish consulates in Berlin, Düsseldorf, Frankfurt, Hamburg, Munich, Stuttgart, in Vienna, in Bern/Zürich, in London, Manchester, Edinburgh, and other DACH-and-UK cities issue NIE appointments. Upside: no Mallorca trip needed in advance. Downside: appointments are sometimes months out.
Path C — Via power of attorney (poder notarial)
You sign a notarial power of attorney at home (with apostille), your Mallorca lawyer applies for the NIE on your behalf. Most convenient and usually the fastest path, costs a legal fee (typically €200–400). Recommended if you're hiring a lawyer for the purchase anyway — most firms bundle the NIE into their package.
3. Spanish bank account
Once you have the NIE, the account is routine. You'll need:
- Passport
- NIE certificate
- Proof of address (a utility bill from home is usually fine)
- An initial deposit (€100 is typical)
For non-residents, it's a cuenta no residente. Monthly fees are slightly higher (~€10–15) than a regular account, but you need it for IBI direct debits, the notary's payment and all utility bills.
Banks comfortable with foreign buyers: Banca March (Mallorca-local, strong personal service), Banco Sabadell, BBVA and CaixaBank. Online banks (N26, Revolut) work for everyday spending but don't replace the Spanish account — the notary payment must come from a Spanish bank.
4. The taxes to expect
At purchase (one-off)
- Transfer tax (ITP) on resale properties in the Balearics: tiered 8% up to €400k, 9% up to €600k, 10% up to €1M, 11.5% above. New builds carry 10% IVA + 1.5% AJD instead.
- Notary + Land Registry: combined ~0.5–1% of price.
- Legal fees: typically 1% + VAT.
Rule of thumb for Mallorca: purchase price + about 11–13% closing costs is the real money you need.
Annually as a non-resident
- IBI (Impuesto sobre Bienes Inmuebles): 0.4–1.1% of the cadastral value (well below market), paid to the municipality. Example: an apartment in Santa Catalina with a €180k cadastral value pays €1,000–1,500/year.
- Modelo 210 — non-resident income tax:
- Rented out: 19% on net rental income (EU/EEA; deductible: repairs, community fees, insurance, pro-rata interest).
- Self-use or empty: imputed rent (renta imputada) = 1.1% of cadastral value × 19%. Counter-intuitive but standard for any owner with no rental record.
On sale
- Plusvalía Municipal: the municipal land-value increase tax during your holding period. Paid by the seller, to the municipality.
- Capital gains tax: 19% on the gain (sale price − purchase price − costs) for EU/EEA non-residents. The buyer withholds 3% of the purchase price and pays it to the tax authority as an advance on your bill.
5. Double taxation: don't worry
Spain's double-taxation treaties with Germany, Austria, Switzerland and the UK all follow the same logic:
- Real-estate income is taxed where the property sits. Spain first, then home-country credit.
- Capital gains likewise in Spain.
- Self-use: only the Spanish imputed-rent rule.
You pay in Spain, your home tax return credits it later. You don't pay twice.
6. Three field-tested tips
- Use the lawyer route for the NIE in parallel to a consular appointment at home. Whoever clears first wins; the power of attorney usually beats the consulate.
- Open the Spanish bank account right after you get the NIE, ideally on the same Mallorca trip. Banca March can do it in 1–2 hours with one appointment.
- Engage an asesor fiscal before your first Modelo 210. €150–300/year, saves you penalty interest and stress. We can recommend Mallorca-based firms — just ask.
What we can help with
We don't give tax advice ourselves, but we work with Mallorca firms that know foreign buyers. If you're looking to buy an apartment in Mallorca and want the setup right from the start, get in touch. For the bigger picture, see our guide for foreign buyers.