¹ Transfer tax on credit assignment: The assignment of a mortgage credit requires a public deed and land registry entry (Art. 149 Mortgage Act). The graduated transfer tax applies — in the Balearics 1.5% of the credit nominal at the time of assignment. Notary and registry fees approx. €4,000–5,000 flat.

² Bid buffer: Cash liquidity reserve deposited at the auction court. The imputable credit comprises the nominal plus statutory default interest accrued up to the auction date — significant in long proceedings. The buffer is calibrated so that credit and reserve together cover the minimum bid; the remainder is available for active bidding.

³ Transfer tax on award: From Law 11/2021 the tax base is the higher of the award price and the cadastral reference value. In this example: award = minimum bid (€150,000, 50% of auction base €300,000); if the cadastral value is higher, the tax increases proportionally. Transfer tax rate in the Balearics: 8% up to €400,000, scaled up to 13%.

Note: Bid-to-Own and Cash-Flow are mutually exclusive. Which scenario materialises is decided at the auction itself.