Inmoluxy Real Estate: your estate agency in Palma

Inmoluxy Real Estate was born of the collaboration with PK Abogados Palma, and that is the main difference: the commercial work of an estate agency (valuation, promotion, viewings and negotiation) is combined with the legal review of a law firm. With a traditional agency, clients often have to instruct a lawyer or administrative agency themselves once they are already committed to a transaction. Here, legal review is part of the process from the outset.

In practice, before a property goes on the market or a buyer signs the deposit contract, we examine the registry extract (nota simple), charges, the planning position and that of the owners' association, the existence of tenants or occupiers and the compulsory documents (energy certificate, habitability certificate). Contracts are drafted or reviewed by lawyers, and the tax and anti-money laundering obligations accompanying each sale are monitored.

The aim is less risk and fewer surprises: identifying a problem before signing is far cheaper than resolving it afterwards. However, where the two parties to a transaction have opposing interests, the proper course is for each to have their own legal advice.

Brokerage fees are agreed in writing in the sale instruction (or brokerage agreement) before work begins. In the sector, they are usually set as a percentage of the sale price, fall due when the transaction is formalised and are paid by the seller, who is the party contracting the service. The applicable VAT is added to the fees. The specific terms (percentage or amount, length of the instruction, whether or not it is exclusive and what happens if you sell on your own account during that period) must be set out in the contract.

In addition to the fees, there are costs borne by the owner regardless of who sells: the energy performance certificate, the habitability certificate if it needs renewing, the certificate of debts to the owners' association, cancellation of any mortgage and the taxes payable by the owner (municipal plusvalía and, where applicable, personal income tax).

Before you sign the instruction, we will explain clearly what the service includes and what it does not. Be wary of any brokerage that does not put the price and terms in writing.

A sound valuation is the foundation of a sale at the right price and within a reasonable time. It starts from a comparative market analysis: actual sale prices (not just advertised prices) of similar properties in the same area, taking into account area, age, quality, orientation, views, terrace, garage or pool and state of repair. To this are added factors particular to Mallorca, such as demand by area, seasonality and the profile of the buyer (resident or non-resident).

The legal position of the property, which greatly affects the price, is also taken into account: charges, mortgages, occupiers, licences and habitability certificate in order, unlegalised buildings, outstanding special levies or technical building inspections. A property with its documents in order sells sooner and holds its value better in negotiation.

The result is a recommended price range, with an explanation of how it was reached and of the strategy (asking price and margin for negotiation). It is an indicative commercial valuation, distinct from an official approved valuation, which only valuation companies or authorised technicians may issue and which is required, for example, in order to grant a mortgage.

There is no fixed timescale, because it depends mainly on three factors: the price relative to the market, the area and type of property, and how well the property and its documents have been prepared. As an order of magnitude, a well-valued and well-presented property may find a buyer within a few months, whereas an overvalued one or one with legal problems may take more than a year or fail to sell. Seasonality also plays a part, because international interest is concentrated at certain times of the year.

To that time must be added the time for processing: several weeks usually pass between signing the deposit contract and the deed, during which the documents are reviewed, the deed is prepared and, if the buyer needs a mortgage, the valuation and the bank's approval are awaited. If documents have to be regularised (habitability certificate, charges, debts to the owners' association), the timescales lengthen.

It is therefore advisable to prepare the documents before going to market, to set a realistic asking price and to consider serious offers carefully, as they are hard to recover if rejected without good reason.

Promoting the property forms part of the brokerage service. It includes preparing the property for viewing, producing a truthful and complete description, carrying out a photographic report and, depending on the type of property, preparing floor plans or video, and publicising it on property portals, through the agency's network of contacts and, where appropriate, among international buyers. The specific scope of the media used is detailed in the instruction.

Viewings are also managed: screening interested parties, checking their purchasing capacity, accompanying them and collecting their offers. From a legal standpoint, care is taken to ensure that advertising is correct: information about the property must be truthful and complete, the energy rating must appear in sale or letting advertisements, and consumer and housing rules on the information provided to interested parties must be observed.

Good marketing does not replace a realistic price, but it multiplies the chances of finding the right buyer, especially in a market as international as Mallorca's.

It is advisable to gather the documents as soon as possible, because their absence is one of the most frequent causes of delay. Essentially you will need: the title deed (from a sale, inheritance or gift) and an up-to-date registry extract from the Land Registry; the cadastral reference and the latest property tax (IBI) receipt; the energy performance certificate and a valid habitability certificate; the certificate of debts to the owners' association and the bylaws, together with the minutes of recent meetings if there are special levies; plans and licences or other documents evidencing the works carried out; and your DNI or NIE.

Depending on the case, other documents are added: the certificate of the outstanding mortgage, tenancy agreements if the property is let, the technical inspection or building assessment report where compulsory, insurance documents and the details of acquisition and of improvements made, which are used to calculate the taxes on the sale. If the seller is a company or acts through an attorney, the deeds and powers of attorney are also needed.

Ideally, these should be reviewed before the property is advertised: if a certificate is missing or there is a discrepancy between the Land Registry and the Land Survey Register (Catastro), resolving it calmly is cheaper and quicker than doing so when a buyer is already waiting.

Yes, this is very common. A mortgage does not prevent a sale: it is simply cancelled with the sale proceeds. The procedure is as follows: the lender is asked for a certificate of the outstanding debt and the terms of cancellation; on the sale deed, the buyer pays part of the price to the bank (normally by banker's draft or transfer) to settle the loan and the rest to the seller; and cancellation of the mortgage is then entered in the Land Registry.

You must take into account the early repayment charge, which the law limits for mortgage loans (Law 5/2019), and what happens if the sale price does not cover the outstanding debt: in that case a partial cancellation or write-off must be negotiated with the bank, and the seller may have to contribute the difference. It is also possible, with the bank's consent, for the buyer to take over the mortgage, which depends on the terms of the loan.

It is important to disclose the mortgage from the outset and to adjust the timetable: cancellation is coordinated with the signing at the notary's office so that there is no gap between payment of the price and release of the charge.

Yes. The energy performance certificate is compulsory for selling or letting a property under Royal Decree 390/2021. It is issued by a qualified technician, is valid for ten years and must be registered with the competent regional body. The cost is borne by the owner, and a copy must be given to the buyer or tenant.

In addition, the energy rating must appear in any advertising for the sale or letting of the property. Advertising without it, or selling without the certificate, may lead to a penalty. The rules provide for some exceptions, such as certain protected buildings, properties with a very small area or very short seasonal lettings, so it should be checked whether the case qualifies.

The energy certificate should not be confused with the habitability certificate: they are different documents with different purposes. In the Balearic Islands, as well as the rating, the habitability certificate must be reviewed, and both documents should be applied for in advance because processing may take several weeks.

The letting of a main residence is governed by the Urban Leases Act, with a minimum term of five years (seven if the landlord is a legal entity) and compulsory extensions. Our work on long-term lettings includes assessing the market rent; promoting the home and selecting candidates by checking their solvency (payslips, employment contract, references); drafting a contract that complies with the law, with an inventory and record of the condition of the home; and advising on guarantees and non-payment cover. Holiday and seasonal lettings are subject to a different regime and are dealt with separately.

The landlord's frequently overlooked obligations are also addressed. The statutory deposit (one month's rent for a home) must be lodged with the competent regional body (in the Balearic Islands, IBAVI) within the established period, and any additional guarantee may not exceed two months' rent. Property management and contract formalisation costs are borne by the landlord, as provided in Article 20.1 of the Urban Leases Act, and may not be passed on to the tenant.

If the owner so wishes, subsequent monitoring may be agreed (collection, rent updates, incidents or end of the contract), as agreed in the instruction. And if non-payment arises, the firm can handle the claim and the eviction.

A traspaso is the transfer of a going concern (the premises, the clientele, the trade name, the furniture and installations and the right to remain on the premises) in exchange for a price. In rented premises, it legally takes the form of an assignment of the lease (Article 32 of the Urban Leases Act), which, unless the contract provides otherwise, does not require the landlord's consent if a business or professional activity is carried on, but does require verifiable notice within one month. The landlord may also be entitled to increase the rent (by 20% on assignment).

Before completing a transfer, several points must be reviewed: that the business has a valid authorisation (licence, responsible declaration or prior notification) and that the change of holder can be processed; the terms of the lease (remaining term, rent, deposit, updates and assignment clauses); the employment, tax and Social Security position, because succession to the business may carry liability for previous debts; and the inventory of the assets transferred.

Our role is to combine brokerage (finding the right buyer or premises) with the legal side: the transfer contract, assignment of the lease, change of holder of the activity and guarantees for payment of the price, which is often deferred or paid in instalments.

In addition to the price, the buyer must budget for the tax on the transaction, the costs of formalisation and, if there is finance, certain loan costs. A second-hand home is subject to Property Transfer Tax (ITP), which in the Balearic Islands is calculated on a progressive scale (from 8% to 13% according to price bands), with reduced rates in certain main-residence cases; the tax base is the higher of the price and the cadastral reference value. On a new home, VAT is paid (as a general rule, 10% on housing) plus Stamp Duty (AJD).

To this are added the notary, the Land Registry and the administrative agency that files the taxes and registrations. If the purchase is financed, the valuation is usually paid by the buyer; under current law, the remaining costs of arranging the mortgage (notary, Land Registry, administrative agency and the tax) are normally borne by the bank. Costs following the purchase must also be taken into account: transfer of utilities, insurance and any necessary works or refurbishment.

A sound prior calculation avoids surprises: always ask for a total estimate of the transaction, with a breakdown of taxes and costs, before signing the deposit contract.

The law allocates the taxes between the parties. The buyer pays ITP (or VAT and AJD on a new home). The seller pays the municipal plusvalía (Tax on the Increase in Value of Urban Land), which is declared within thirty working days of the deed, and is liable to personal income tax on the capital gain, with possible exemptions if it is the seller's main residence and the reinvestment or age requirements are met.

Other payments are allocated by agreement or custom: property tax (IBI) falls due on 1 January and its amount is usually apportioned between the parties from the day of sale, and owners' association costs are settled up to the date of the deed, with a certificate of debts showing that they are up to date. If the seller is not resident in Spain, the buyer must withhold 3% of the price and pay it to the Tax Agency as a payment on account of the seller's tax.

The parties may agree between themselves that a tax is to be paid by someone other than the taxpayer (for example, that the buyer assumes the plusvalía), but such an agreement is valid only between them: as against the authorities, the person designated by law remains liable. It is therefore essential for the contract to state clearly who pays what.

Yes. There is no general prohibition on non-resident foreign nationals buying a home in Spain. You will need an NIE (foreigner's identification number) to sign the deed and pay the taxes, a Spanish bank account for payments and, if you cannot travel, a notarial power of attorney granted before a notary or consulate (normally apostilled and translated) so that someone can sign on your behalf. Notaries and banks apply the anti-money laundering rules, so you will have to prove the source of the funds.

After the purchase, a non-resident owner files an annual Non-Resident Income Tax return (form 210) on the deemed income from the property, even if it is not let, and may have Wealth Tax obligations. When you sell, the 3% withholding on the price will apply, and inheritance and gift taxes vary according to the residence of the deceased and of the heir. If you need a mortgage, banks usually finance a lower percentage of the value for non-residents.

You should be aware that, since 3 April 2025, buying a property no longer gives entitlement to a residence permit by investment (the so-called golden visa). If your aim is to live in Spain, other immigration routes must be studied.

Buying without advice in a country whose legal and tax system you do not know multiplies the risks. The most common are acquiring a property with hidden charges (mortgages, seizures, easements), with debts to the owners' association or for taxes that pass to the buyer, occupied by tenants or by occupiers without title, or with buildings lacking a licence or habitability certificate that cannot be legalised. On rural properties, moreover, the planning rules greatly limit what can be done.

There are also contractual and financial risks: signing a reservation or deposit contract with clauses that forfeit the money with no clear way out, failing to provide for finance, overpaying taxes or not knowing which must be paid, or not understanding the document being signed because of the language barrier. In off-plan purchases, the developer must secure the sums paid on account by a bank guarantee or insurance, which must be checked. And fraud is not uncommon: emails purporting to come from the agency or the notary asking for the payment account to be changed, or false advertisements.

Independent legal advice before paying anything costs a fraction of what a mistake can cost, especially when buying from a distance. Reviewing the registry extract, the planning position, the charges and the contract is the minimum that should be done before handing over a single euro.

Before signing, the lawyers review the draft deed and check that it matches what was agreed: price, method of payment, charges, clauses and property details. The registry extract is updated to confirm that the registry position has not changed, it is verified that the compulsory documents are provided (energy certificate, habitability certificate, certificate of debts to the owners' association), cancellation of any mortgage is coordinated and the payments are organised, which are made by transfer or banker's draft. If the buyer needs a mortgage, the prior notarial record and the signing date are coordinated with the bank.

On the day of signing, the parties are accompanied before the notary. If either of them does not speak Spanish, an interpreter or translation is arranged, because the notary must be satisfied that they understand what they are signing, and powers of attorney are checked if someone is acting on another's behalf. The keys are handed over and, where appropriate, a handover record or inventory is drawn up.

After signing, the subsequent formalities are handled: settlement of the tax, entry in the Land Registry, notification to the Catastro, transfer of the utilities and of the owners' association and filing of the seller's plusvalía. In this way, the client need not worry about the deadlines.