Mallorca has long been a dream destination for second-home buyers. Whether you're considering purchasing a holiday home or you’ve already made the leap, there are essential steps to ensure your property is legally compliant, financially efficient, and secure year-round.
At Mallorca Solutions, we support second home owners through every stage of the ownership journey — from acquisition to long-term peace of mind. Here's what you need to know:
1. Obtain Your NIE Number
The Número de Identificación de Extranjero (NIE) is your unique tax identification number in Spain. It’s required for almost every legal and financial transaction — from buying a property to setting up utilities. If you haven't already applied for your NIE, it should be the first item on your checklist.
2. Register at the Tax Office as a Non-Resident
Even if you spend limited time in Spain, you must be registered with the Agencia Tributaria as a non-resident property owner. This ensures you're taxed appropriately and helps avoid any confusion about your fiscal status in Spain.
3. Open a Spanish Bank Account
You'll need a local bank account for the seamless payment of utilities, property taxes, community fees, and insurance premiums. Ensure all regular payments, such as electricity, water, and internet, are set up via direct debit to avoid disruptions — especially if you're managing your property from abroad.
Understand Annual Property Taxes: IBI & Basuras
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IBI (Impuesto sobre Bienes Inmuebles) is a yearly municipal property tax based on the cadastral value of your home.
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Basuras is the local refuse collection fee, also billed annually.
Make sure you're receiving these bills and that they’re being paid on time. Late payments can result in fines or complications when selling your property.
What's the deal with the QR code?
Every invoice will now have a QR code printed on it. This allows Hacienda or your clients to scan the invoice and instantly verify its validity. It's a quick and easy way to confirm that the invoice is genuine and hasn't been altered.
5. File Your Annual Non-Resident Tax Return
All non-resident property owners in Spain are required to file a Modelo 210 tax return annually — even if the property isn’t rented out. This declaration includes a notional rental value and helps you remain fully compliant with Spanish tax law. Many owners overlook this step until it's time to sell, when unpaid taxes can cause costly delays.
6. Manage Community Fees and Property Contacts
If your property is part of a community of owners, you'll be responsible for monthly or quarterly community fees. These cover communal services like pool maintenance, landscaping, and building insurance.
Ensure you're:
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Receiving communication from the administrator.
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Up to date with payments.
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Listed with accurate contact details (email and postal address).
7. Utilities: Setup and Monitoring
Confirm that all utility accounts are in your name and connected via SEPA direct debit. It’s advisable to periodically check consumption and billing, as leaks or mischarges can go unnoticed for months in unoccupied homes.
8. Have the Right Home Insurance in Place
Spanish home insurance varies significantly between providers. As a second-home owner, make sure your policy includes:
- Coverage for unoccupied periods
- Vandalism and theft
- Water damage (a common issue in older Mallorcan properties)
- Liability coverage
We also strongly recommend adding protection against okupas (squatters) — an unfortunate reality in Spain. This coverage can include legal costs and even temporary relocation.
9. Secure Your Property: Safety & Squatter Protection
Second homes can be vulnerable when left unoccupied. Consider:
- A reliable alarm system with remote monitoring
- Physical deterrents (e.g. reinforced doors, window bars)
- Regular check-ins or maintenance visits
The best line of defense is having a local property manager who can keep an eye on your home, respond to emergencies, and ensure all systems are working properly.
Why Property Management and Insurance Matter – Especially for Resale
Prospective buyers look for homes that are well-maintained, legally compliant, and worry-free. By having a reliable property management service and comprehensive insurance in place, you:
- Preserve the value of your investment
- Prevent unexpected costs or delays
- Offer peace of mind to future buyers — a major selling point
How Mallorca Solutions Can Help
At Mallorca Solutions, we specialize in helping second-home owners manage the practical side of island property ownership. Whether it’s handling your tax filings, coordinating utilities, organizing insurance, or providing full-service property management, we make sure your home is protected — even when you’re not here.
Thinking of buying a home in Mallorca, or already own one and want to simplify the process? Get in touch with Mallorca Solutions for a consultation. We’ll make sure your property isn’t just beautiful — but also secure, compliant, and stress-free.