Open a bank account in Mallorca

by Mark Stücklin

You are certain to need a bank account with a local branch in Mallorca in order to make many of the usual payments that are part and parcel of owning a property in Mallorca.

It is highly likely that you will also need an account in Mallorca in order to buy a property. This is because many private vendors will only accept a bank-guaranteed cheque drawn from an account in Mallorca. Developers selling new properties are also starting to insist on payments being made from a local bank account as recent laws on money-laundering make accepting payments from other countries more complicated. Therefore you would be well advised to open an account in Mallorca in good time before you buy a property.

If you use a mortgage in Mallorca to finance your purchase it often makes sense to open an account with the bank that lends you the mortgage. In this case, your choice of the bank will be determined by the mortgage conditions you are offered. However, if you do not take out a mortgage with a local bank you will need to do some research on the retail banking conditions being offered by different banks.

Retail banking services and charges vary significantly and it is important to look into these issues before you open an account and buy a property. One has to pay particular attention to the fees that different banks charge for receiving transfers from abroad and for issuing bank-guaranteed cheques, both of which can add thousands of Euros to the cost of your purchase if you are not careful. To avoid a nasty shock you need to negotiate these fees in advance with the branch where you open your account.

This article is a part of the Comprehensive Guide to Buying Property in Mallorca. Click here for all the steps from defining property needs to the costs of owning a holiday home. 

Morgan and Morgan are well versed with the banking system in Mallorca and can guide you through the process of opening a bank account.