Buying property in Mallorca: Financing is the deciding factor

Which bank is right for you, how the purchase will be financed, and what needs to be taken care of before the notary appointment: Smart Servicios guides German-speaking buyers through these crucial steps.

You've found the property, the price is right—and now it's time to make the decisions that aren't listed in any property brochure. Which bank will finance the purchase on favorable terms? Is the purchase structure appropriate? And will the NIE, documents, and financing be ready in time for the notary appointment?

Daniel Pires knows this process from both perspectives. He worked in the banking industry for many years, including at Santander. When he bought his first property in Spain more than 20 years ago, he experienced firsthand how challenging the process can be, even with expert knowledge and fluency in Spanish. Today, at Smart Servicios, he brings both perspectives together: an understanding of banking decisions and the experience of a buyer who has gone through the Spanish real estate process himself. As a certified real estate specialist and broker, he specializes in particular in assisting German-speaking non-residents.

Mortgages in Mallorca: Compare Offers Instead of Going from Bank to Bank

Real estate financing involves more than just the interest rate. The loan term, equity, options for making extra payments, creditworthiness, and the requirements of the respective bank must all be a good fit for the buyer and the property. Smart Servicios reviews financing options at various banks, compares mortgage offers, and assists with negotiating the terms. According to the company, the financing division operates independently of individual banks and on behalf of the client. This comparison is particularly relevant for non-residents, as not every financial institution evaluates foreign borrowers using the same criteria. Buyers thus receive a comprehensive overview of the financing options available for their project.

Buying Real Estate: Considering Financing and the Purchase Structure Together

Even with a general commitment to financing, not all decisions have been made by any means. Smart Servicios also assists with the property due diligence, helps determine the appropriate purchase structure, and prepares the preliminary purchase agreement. Depending on your personal situation, it may be important to determine whether a property is purchased alone, jointly with a partner, or with the inclusion of a usufruct. These questions should be clarified before the intention to purchase becomes a binding agreement.

Get your NIE number in time before making a purchase

The Spanish NIE number is required for numerous financial, tax, and administrative procedures and plays a key role in the purchase of real estate. Smart Servicios handles the application process and also offers this service to clients who do not wish to travel to Spain themselves for this purpose. Anyone actively preparing for a purchase can complete this step early on, thereby avoiding unnecessary time pressure before securing financing or attending the notary appointment.

There are still some tasks left to complete after the notary appointment

Once you sign the documents at the notary's office, the purchase is complete—but there are still some administrative matters to take care of. Property registration, tax obligations, and utility connections are among the areas where Smart Servicios can also provide assistance upon request.

Planning to buy or finance a property in Mallorca? Smart Servicios will work with you one-on-one to determine the steps required for your specific project.