Although in Germany, as in Spain, the “public faith” (fe pública) in the land register also applies, there are some important differences between the two countries. First, in Spain, anyone who merely shows a legitimate interest is entitled to access the land register, whereas in Germany, only certain authorized parties such as notaries, courts and owners can inspect the land register. In Spain, for example, this legitimizes prospective buyers to inspect the land register. Furthermore, the land registers in Germany and Spain differ in terms of content and structure. In Germany, three sections – owner, encumbrances and restrictions, mortgages and land charges – are entered in the land register and all other extensive information can be found in the master file. In contrast, there is no such distinction in the Spanish land register. Every legal transaction is continuously entered into the register, which can often lead to confusion. It is important to note that when buying and selling real estate in Mallorca, the register plays an extremely important role: The content of the publicly maintained register is incontestable. Therefore, one should be particularly careful about the seller – or broker information from the parcel or handed out property plans, etc., because these are not binding and not infrequently the values mentioned there deviate from the information in the register.

MD-Tip: Every prospective buyer for a property in Mallorca is absolutely recommended to inspect the Spanish land register before the conclusion of the purchase contract. A shortened simple information – a simple land register excerpt – represents the “nota simple”, which is initially sufficient for the purchase security.

The Spanish cadastre, known as the catastro in Spain, is a public institution that collects city plans as well as drawings and plans of properties.
The Catastro is important because it forms the basis of the so-called valor catastral, or cadastral value, and also for assessed values for tax levies relevant to a property.

MD-Tip: The Spanish cadastre differs in the legal binding of the property values in comparison to the cadastre in Germany! Please read in detail the point about the Spanish land register.

The reason for the conclusion of an option contract is a legally binding agreement between the real estate buyer and the real estate owner. This preliminary contract is not legally mandatory in Spain, but it is the rule in practice.
On the one hand, the contract offers the possibility to use the time until the notarization to prepare all necessary documents or, for example, to apply for financing. On the other hand, both parties usually need time to prepare a possible move, because in Spain, unlike in Germany, the transfer of the property takes place directly at the notary appointment.
The option contract is not to be understood literally as the promise of an option in the German sense, because it does not result in a binding legal transaction in the property law sense. It is rather a down payment contract, which makes the purchase promise binding for both parties, in which a down payment on the purchase price (usually 10%) is transferred by the buyer to a notary round account and all essential features such as the latest notary date, procurement of necessary documents and other agreements regarding the purchase contract are regulated.
If one of the parties does not adhere to this contract, this deposit must be paid to the other party as a penalty.
If all conditions for the legally valid purchase of the real estate are already created, the conclusion of an option contract can be also renounced and the purchase can take place directly legally before a notary with the appropriate issue of the purchase document.

MD-Tip: The conclusion of a down payment contract is absolutely recommendable. This should be set up and/or examined by a specialist lawyer for real estate law. The designation “option contract” is to be avoided absolutely, since such a later tax-relevant disadvantages (land acquisition tax!) can bring along.

What is an N.I.E. number? N.I.E. is an abbreviation for Número de Identidad de Extranjero and means Identification Number for Foreigners (or Foreigner Identification Number). The NIE is your multifunctional identification and tax number in Spain.

MD-Tip: If you have enough time before buying a property, apply for your N.I.E. at the relevant Spanish consulate in your area. This is usually possible by submitting an application and paying a small fee.

If you have already found a property to buy and you do not have a N.I.E. yet, talk to us – we will arrange a reliable and fast service partner for you, who will get you the Spanish tax number for a fee, unproblematically and quickly.

The certificate of habitability (cédula de habitabilidad) is a necessary and important document in all real estate sales and purchases. If it is not present, the notary may not certify.

MD-Tip: There are many property owners in Mallorca who have not applied for this document in the past. However, a new creation is possible – talk to us about it to support you.

The energy certificate – Certificado de eficiencia energética – is mandatory in Mallorca for sale and rent. The legal basis for this is since June 01, 2013 also in Spain due to the Royal Decree RD 235/2013 a European Consumer Protection Act (EC Directive 2002/91/CE), according to which every property is sold or rented must have an energy certificate.

MD-Tip: When offering a property, please make sure that the energy certificate is available. A property may not be provided without an existing energy certificate.