Selling Your Home in Mallorca: Pricing It Right and the Costs

Selling a home in Mallorca well and within a reasonable time depends mainly on three things: a realistic asking price, good presentation and having the paperwork ready from day one. It also helps to know in advance which taxes and costs you will face, so you can work out what you will actually receive. Here is how it works.

Setting the price

The asking price is the most important decision of the whole sale. Too high, and the property sits for weeks without viewings and goes stale on the portals. Too low, and you leave money on the table.

A sound valuation combines:

• Real comparables in the same area and category: exact location, views, orientation, size, condition, terrace, pool, parking.
• Today's market, not that of a few years ago: how much similar stock is available and how quickly it sells.
• Your property's strengths and weaknesses, assessed honestly.

As a first step, you can use the free online valuation on our website at ericsusandfalk.com/PropertyValuation. It gives you a quick guide, and we can then refine it with a visit, because in Peguera and the surrounding area two homes on the same street can be worth very different amounts depending on views or condition.

Presentation: photos and first impressions

Most buyers, especially those living abroad, discover a property online first. Professional photos with natural light, tidy rooms and no personal clutter make a real difference. Small jobs before going to market pay off: fresh paint, taps, shutters, a well-kept garden and pool. A clear floor plan and an accurate description save viewings that are not a fit.

Documents to have ready

Having the paperwork in order speeds up the sale and reassures the buyer and their lawyer:

• Title deed (escritura) and an up-to-date Land Registry extract (nota simple).
• Habitation certificate (cédula de habitabilidad): Balearic housing law requires a copy of the valid cédula to be provided on sale, or a statement that none exists. If yours has expired, renew it early.
• Energy performance certificate: mandatory to advertise and sell.
• Latest IBI property tax and waste collection receipts.
• Community certificate confirming fees are paid up, where applicable.
• Building licences or legalisation of extensions and pool, if any.
• If there is a mortgage, the bank's statement of the outstanding balance so it can be cancelled at completion.

Taxes and costs when selling

Municipal capital gains tax (plusvalía municipal)

This local tax on the increase in land value is normally paid by the seller to the town hall (Calvià or Andratx in the south-west). It is calculated on the cadastral land value and years of ownership, but you can opt to have it calculated on the actual gain if that works out lower. If there has been no increase in value, it is not payable, but you still need to file a return to prove it.

Capital gains tax: residents

If you are tax resident in Spain, the gain (sale price minus purchase price, adjusted for documented costs and improvements) is taxed under Spanish income tax (IRPF) on the savings scale, from 19% to 30%. Exemptions exist, for example when reinvesting in a new main home or for over-65s selling their main home, subject to conditions your adviser should check.

Capital gains tax: non-residents

If you do not live in Spain, the gain is taxed under non-resident income tax, generally at 19%. In addition, the buyer must withhold 3% of the price and pay it to the tax office on form 211. This is a payment on account: the seller then files form 210 and can reclaim any excess if the final tax is lower. With non-resident sellers it is also common for an amount to cover the plusvalía municipal to be retained at the notary.

Other costs

• Agency fee, as agreed in the sales mandate.
• Mortgage cancellation, if applicable: notary and registry fees.
• Technical certificates (energy, cédula) and minor repairs.
• Legal or tax advice, particularly advisable for non-resident sellers.

The figures in this article are a guide only; a lawyer or gestor should confirm them for your specific case.

Let's talk about your home

If you are thinking of selling in Peguera or south-west Mallorca, start with the free online valuation or call us on +34 694 462 346. Ericsus & Falk will give you an honest view of price and process, with no obligation.