Due diligence for hotels
| Area | What we check |
|---|---|
| Tourism | Registration, category, places, inspections |
| Planning | Licences for the building and any extensions |
| Employment | Staff, contracts, collective agreement, claims |
| Contracts | Operators, tour operators, suppliers, leases |
| Tax and debts | Taxes, social security, charges on the property |
Asset deal or share deal
Buying the building and business directly or buying the company that owns it changes taxes, liabilities and timing. We compare both with you. See corporate lawyer.
Hotel staff and operators
Employees transfer with the business. We review their contracts and any pending claims. See employment lawyer and commercial property.
Example: buying a hotel in Mallorca
Based on situations we commonly see; not a specific client. A Swiss family office was buying a 20-room rural hotel in the Tramuntana. The tourism registration covered fewer places than the hotel was selling. We adjusted the price and made the seller regularise the registration before completion.
Our collaborators for buying a hotel in Mallorca
For every service we work with trusted collaborators when a matter needs them: notaries, architects and surveyors, tax advisers at Castell.tax, sworn translators, banks and mortgage brokers, property managers and specialist lawyers in other parts of Spain. You keep one lawyer as your single point of contact, and we coordinate everyone else.
Castell.law is the English and German-speaking practice of Castell Abogados, a law firm in Palma de Mallorca. This page is general information, not advice on a specific case: laws and procedures change, so check your situation with us before acting.
Not sure where you stand? Ask before you sign
Tell us about your matter or send us the documents you have. A lawyer will explain the risks, the options and the cost before you commit to anything.
Questions about buying a hotel in Mallorca
What matters most when buying a hotel in Mallorca?
The tourism registration, its places and the planning status.
Do the staff transfer with the hotel?
Yes, employees transfer with the business.
Is it better to buy the company or the building?
It depends on taxes and risks; we compare both.
Can I convert a building into a hotel?
Only if planning and tourism rules allow it.