Mission & Vision
360° Mallorca Property’s office is nestled in the famous picturesque fishing village of Porto Petro on the southeast coast of Mallorca. 360° Mallorca Property is a friendly yet professional real estate and construction company having been established for over 20 years and has a had strong presence in Mallorca and Europe.
With Mallorca fast becoming one of Europe’s most sought after places to live, due to its cosmopolitan lifestyle, luxurious landscapes, over 500km of beautiful coast line, leisure and sporting activities and not forgetting the 300 days of sunshine, our aim whatever your property requirement, is to guide and help you to your dream.
Whether buying or selling, a complete or partial reform, maintenance or building a new property, 360° Mallorca Property offers you a complete service for your dream home, our team can provide the kind of expertise you expect. With our extensive knowledge of the island, inform us of your requirements and sit back and let us do the hard work, we ensure the most reputable legal teams enabling you the best possible advice knowing that every step of the way we are here for you.
Why you should choose us
Basically, any activity in Spain that requires you, as a foreigner, to pay taxes will need you to apply for a NIE number. A NIE number does not preclude your tax residency. The list supplied below is ad exemplum; it is by no means a closed list.
- Buying property.
- Selling property.
- Connecting your property to utilities.
- Inheriting assets in Spain.
- Opening a bank account.*
- Taking out insurance.
- Importing/buying/selling a car.
- Importing/buying/selling a boat.
- Working in Spain.
- Studying in Spain.
- Claiming benefits.
- Obtaining a mortgage or any other type of loan.
- Can be used to enrol in a town hall census.
- Some elite private foreign schools require a NIE number from parents and/or new (foreign) pupils to enrol them!
*Whilst it used to be a mandatory requirement in the past to attain a NIE number as a foreign resident to open a bank account in Spain, this is no longer the case. However, although initially you can now open a bank account without a NIE number it will be required further down the line by the tax office.
Who needs a NIE number?
- Any foreigner who becomes resident in Spain for tax purposes.
- Any non-resident who plans to own assets in Spain i.e. real estate, car, boat etc.
- Any foreigner who plans to work, study or start a business in Spain.
How to get a NIE number
- Apply abroad in person, through a Spanish consulate.
- Apply in person in Spain before a Spanish National Police Station.
- Apply by representative. You can appoint a law firm, to act on your behalf as proxy using a Power of Attorney specific to NIE numbers.
What is required to attain a NIE?
- Fill in the relevant application form in Spanish.
- Pay the government fee.
- Justification on why it is needed.
Other fees inherent to the purchase of the property (notary, land registry, processing, lawyer if required, etc.) will need to be added to said amount. These fees can amount to between approximately 0.5% and 1.2% of the value of the property. Fees and taxes could be more if the purchase is being financed by a mortgage, reaching around 1.75% of the amount borrowed.
IF THE SELLER IS A COMPANY OR BUSINESS ENTITY and a new building (one which has been constructed or renovated) or plot is the subject of sale: The buyer must pay VAT to the seller. A VAT rate of 10% will be applied if the property is a newly finished building.
A VAT rate of 21% will be applied if the property is a plot of land, industrial unit, establishment, office …
The buyer must also pay DOCUMENTED LEGAL ACTS TAX (‘Actos Jurídicos Documentados’ – AJD) to the Balear Tax Office, at a rate of 1.2% of the value of the property. Between 0.5% and 1% approximately should be added to the amount for fees inherent to the purchase of the property (notary, registry, administration). It may be more if the purchase is financed by a mortgage, with the percentage depending on the amount borrowed.
IF THE SELLER IS A COMPANY OR BUSINESS ENTITY and a second-hand building (home, establishment, hotel, etc.) is the subject of sale, initially they will not be subject to VAT + AJD. However, the payment of ITP (between 8% and 10%) will be required. In any case, if the buyer is also a business entity (for example, a Spanish entity) and the property is purchased with the aim of being used for economic activity (for example, an industrial unit or establishment to be rented, or a hotel to be run or rented), there is the possibility for the process to be subject to VAT, which is a tax that can then be deducted and recovered (unlike ITP and AJD).
IF THE SELLER IS THE OWNER OF THE PROPERTY THROUGH A COMPANY, it is common to offer the buyer the chance to purchase the company and not the property directly. Non-resident sellers can hope to obtain certain tax advantages (including not paying tax in Spain on earnings derived from the sale) and buyers can save on tax for the purchase as long as they fulfil certain requirements, in particular that there are various buyers and that nobody purchases more than 50% of the company. In any case, it is a process that has significant legal and tax risks for the buyer, therefore, it is highly recommended to complete a prior, in-depth study.