A step-by-step guide to what comes after completion: water, IBI and rubbish tax in Mallorca

Signing at the notary's office, a handshake, the keys on the table. That same day, many of our clients feel, quite rightly, that everything is done. And in essence, it is: the property is theirs. But a few weeks later, signs start to appear that the paperwork didn't end at the notary's office — it had only just begun. A water bill in the name of someone nobody's ever heard of. A letter from the tax authorities chasing a tax they didn't know existed. A neighbour asking, puzzled, why the rubbish collection still hasn't been set up in their name.

It isn't that anyone kept this from them on purpose. It's that in Spain, these arrangements aren't handled by the notary, nor — unless specifically asked to — by the estate agency. They fall to the new owner, each with its own deadlines and its own authority, depending on whether it's water, IBI (property tax) or the rubbish tax. And because each one follows its own logic, it's easy to leave something half-done without realising it, until a surcharge arrives. Here, set out in order, is what's worth sorting in the first few weeks.

Water: the process isn't the same across the island

In Palma itself, the supply is managed by EMAYA, the municipal water company. In the rest of Mallorca's municipalities, each town council has its own company or concessionaire, so the first step is finding out which one applies to you; your solicitor or agency should be able to tell you without any trouble.

If the property already had a working water supply — the usual case with a resale — what's needed is a change of named holder, not a new connection. This is normally free of charge as long as the account is up to date, and you'll typically be asked for: the new holder's passport or NIE, the deed of sale or a nota simple, an IBAN for direct debit, and the most recent meter reading. The detail most often missed: if there are unpaid bills from the previous owner, that debt can be passed on to the new holder. It's worth requesting proof that the account is up to date before signing the change of holder, not after.

IBI: it's owed by whoever owned the property on 1 January

The IBI (the Spanish equivalent of council tax on property ownership) causes more confusion than any other charge, for one very specific reason: it accrues on 1 January, and whoever is recorded as the owner on that date is legally liable for the whole year's charge — whether you buy the property in March or in October. In practice, this is almost always settled within the deed itself, with the amount prorated between buyer and seller, but it's a point worth confirming with your solicitor before signing, not discovering come November.

In Palma, IBI collection falls to the Balearic Tax Agency (ATIB), and the voluntary payment window runs each year from mid-September to mid-November. Missing that date carries a real cost: a surcharge of between 5% and 20% on the bill, plus interest if the debt drags on. The simplest way never to think about it again is to set up a direct debit straight through ATIB's Cartero Virtual using your taxpayer code; once set up, payment is taken automatically in the final fortnight of the voluntary period.

Rubbish tax: sometimes bundled with IBI, sometimes not

The urban waste treatment tax (TRSU) is usually also managed by ATIB under an agreement with the town council, though the timing doesn't always match IBI's: in Palma, for instance, it can be billed in two instalments, one in spring and the other alongside the IBI bill at year-end, depending on how the previous owner had it set up. It's a minor detail, but it's exactly the kind of thing only someone who has handled property purchases on the island for years would know to check: it's worth asking, on your first visit to ATIB or the town hall, whether the bill is already set up in your name, rather than assuming it is.

Electricity and gas: a different logic applies here

Unlike water, IBI or rubbish tax, electricity and gas have nothing to do with the town council — they're contracted freely with whichever supplier you choose, be it Endesa, Iberdrola, Naturgy or another. If the property already had an active electricity supply, a simple change of holder will do, quoting the CUPS (the unique supply point code found on any previous bill). If the installation had been unused for some time, or it's a new build, you'll need an up-to-date electrical certificate before it can be connected.

Why it's worth sorting in the first month

None of these arrangements is complicated on its own. What complicates things is doing them all at once, possibly in a language you don't fully speak, while also trying to organise a move. It is, in fact, one of the most common mistakes among international buyers in Mallorca: considering the process finished at completion, only to discover months later that something was never set up. And if you'd like a fuller picture of what it costs to keep a property on the island beyond these one-off arrangements, we have a detailed guide to the real cost of living in Mallorca that's worth reading before you sign, not after.

At Balear Invest, we support our clients through exactly this stage — the one that begins once the notary's work ends: we tell you which water company covers your municipality, check for any inherited debts, and make sure IBI and rubbish tax are set up in your name from the very first bill. You can find out how we work with international buyers on our buyers' services page.

And so, when that first bill arrives in your name, free of surprises or anyone else's debt, you'll have the peace of mind of knowing that, this time, everything really is done.