Quick guide for foreigners who want to buy property in Menorca

Menorca is one of the most desirable destinations in the Mediterranean for those seeking a second home, a seaside retreat, or a secure investment in a naturally privileged setting. Each year, foreign buyers—especially from Europe and the UK—show strong interest in acquiring property on the island. But how does the process work if you are not a Spanish resident?

This quick guide explains everything you need to know to buy a property in Menorca as a foreigner: legal requirements, tax matters, and key advice for a smooth, stress-free purchase.

1. Can I buy a house in Menorca if I’m not a resident?

Yes. Any foreign citizen—whether from the European Union or outside (such as the UK)—can purchase property in Spain, including Menorca. You don’t need to be a tax resident or live in the country permanently.

2. Required documents

NIE (Foreigner Identification Number)

This is the first mandatory step. The NIE is a personal, unique number needed for any legal or financial transaction in Spain, including real estate purchases. You can apply for it:

• At a Spanish police station

• Through the Spanish consulate in your home country

• Via a legal representative or advisor

Valid passport or ID

You must present a valid passport (for non-EU citizens) or national ID card (for EU citizens).

3. Opening a Spanish bank account

Although not mandatory, opening a Spanish bank account is highly recommended to manage utility bills, taxes, and property expenses. It's also required by most banks if you’re applying for a mortgage.

4. Can non-residents apply for a mortgage?

Yes, Spanish banks offer mortgages to non-residents, though under different conditions than for residents:

• Up to 60–70% financing of the appraised value

• Terms of 20 to 30 years

• Documentation: income proof, tax returns, bank statements, etc.

• Fixed or variable interest rates, depending on your profile

5. Purchase costs and taxes

Approximate costs and taxes:

• Transfer Tax (ITP): 8–11% for resale properties

• VAT and Stamp Duty: 10% + 1.5% for new properties

• Notary and registration fees: 1–2% of the property price

• Legal and administrative fees: depending on the services required

In total, you should budget an extra 10% to 13% on top of the purchase price.

6. Do I need a lawyer?

Not legally required, but strongly recommended. A local real estate lawyer can:

• Verify the property’s legal status

• Check for debts, encumbrances, or planning issues

• Handle the reservation and deposit contracts

• Represent you during the entire process if you can’t be present

7. Taxes after the purchase

As a non-resident property owner in Spain, you’ll need to:

• Pay the IBI (property tax) annually

• Submit the Non-Resident Income Tax (IRNR)

  • If you rent out the property: declare the rental income

  • If you don’t rent it: pay a small imputed tax for personal use

8. Additional useful tips

• Document translation: If you don’t speak Spanish, make sure to get sworn translations or bilingual assistance.

• Energy efficiency certificate: Mandatory for selling or renting.

• Tourist rental license: Required if you plan to rent the property during the summer. Issued by the Consell Insular de Menorca.

Conclusion

Buying a property in Menorca as a foreigner is entirely possible—and increasingly common. With proper planning and legal guidance, the process is safe and straightforward.

At Fincas Venalis, we’ll support you through every step: from finding the perfect home to signing the deed, managing all legal and tax matters along the way. Whether you’re from Europe or the UK, we’re here to help make your dream of owning a home in Menorca come true.