If you are looking at property for sale in Mallorca, buying off-plan is one of the smartest ways to secure a brand-new home at today’s price while it is still being built. You get the latest construction standards, energy efficiency and the chance to personalise finishes – but the process is different from buying a resale home. This step-by-step guide explains exactly how it works.
What does “off-plan” actually mean?
Buying off-plan (in Spanish, comprar sobre plano) means purchasing a property before construction is finished – sometimes before the first stone is laid. You buy based on the architectural plans, technical specifications and a show home or 3D renders. Payments are staged throughout the build, and you take ownership once the home is completed and the licence of first occupation is granted.
Why buy off-plan in Mallorca?
- Lower entry price. Off-plan property for sale in Mallorca is usually priced below the market value it will have on completion.
- Brand-new and efficient. New builds meet the latest energy and insulation standards, with lower running costs.
- Personalisation. You can often choose kitchens, bathrooms, flooring and finishes.
- Staged payments. You spread the cost over the construction period instead of paying everything up front.
Step-by-step: buying off-plan property in Mallorca
1. Define your budget and location
Decide how much you can invest, including taxes and fees (around 11–13% on top of the price). Then narrow down the area – from Palma and the southwest to the quieter north and east of the island.
2. Choose a trusted developer or builder
This is the single most important decision. Review the builder’s track record, completed projects and build quality. A solid, experienced local construction company protects your investment and delivers on time.
3. Get your NIE and a Spanish bank account
You will need a Spanish tax number (NIE) to buy any property in Mallorca, and a local bank account to manage the staged payments.
4. Reservation and private purchase contract
You sign a reservation agreement with a small deposit to take the property off the market, followed by the private purchase contract that sets the price, the payment schedule and the delivery date. Always have an independent lawyer review it.
5. Check the bank guarantees
Spanish law requires the developer to guarantee the amounts you pay during construction through a bank guarantee or insurance policy. This protects your money if the project is not delivered.
6. Construction, updates and snagging
During the build you make the agreed staged payments. Before completion you carry out a snagging inspection to list any defects the builder must fix.
7. Completion at the notary
Once the licence of first occupation is issued, you sign the title deed (escritura) before a notary, pay the balance and taxes, and the home is registered in your name.
Costs and taxes on new-build property in Mallorca
- VAT (IVA): 10% on the purchase price of a new-build home.
- Stamp duty (AJD): around 1.2% in the Balearic Islands.
- Notary, land registry and legal fees: approximately 1–2%.
These figures are indicative; always confirm the exact amounts with your lawyer or tax adviser.
How to avoid the most common risks
The main risks of buying off-plan – delays, changes to the finished product or developer insolvency – are largely avoided by working with a reputable builder, insisting on bank guarantees and using an independent lawyer. Done properly, an off-plan purchase is one of the safest and most rewarding routes into the Mallorca property market.
Build your home in Mallorca with confidence
At Llull Sastre we have decades of experience building high-quality new homes across the island. If you are exploring off-plan property for sale in Mallorca or want to build a bespoke home, get in touch with our team for honest, expert guidance from the first plan to the final handover.