FOR SELLERS

The seller must accredit by means of a certificate issued by the administrator of the community or the president that he/she is up to date with the payments.

In Mallorca the real estate agency fees related to the search of a property are paid by the seller and are usually 5% of the value of the property. Experienced and reputable real estate agencies such as Javier James Real Estate include in these fees the legal verification of the property and other administrative procedures.

It is possible that the seller may need to hire an agent to carry out the legal and fiscal formalities such as the payment of the Plusvalia Municipal which we will not go into detail here.

It is a tax that is paid annually to the Town Hall and is between 0.4% and 1.1% of the value of the property (amount that in principle should be at most half of the market value). Before signing the deed, the seller must confirm that this tax has been paid up to date. Sometimes the payment is divided between the buyer and the seller depending on who was the owner during which months.

TAX ON THE INCREASE IN VALUE OF URBAN LAND (PLUSVALÍA)

The municipal surplus value tax (not to be confused with the fiscal surplus value tax) is calculated on the increase in value that the land on which the property sits has experienced in the past up to the time of the sale. It is calculated with the cadastral value and the number of years that the seller has had the property (a maximum of 20 years is taken into account), if it is less than one year it is not calculated. It is paid by the seller and must be processed by the town hall within 30 calendar days from the date of the deed. It can vary from one town hall to another and it is calculated with the IBI. If it is demonstrated that there has been no increase in value (losses) between the purchase and the sale, it may not be obligatory to pay it.