How a Plaça lunch cost a New York couple one million euros

How a Plaça lunch turned into an expensive nightmare

It was a clear March midday in Palma: the cathedral bells set a quiet rhythm, seagulls circled over the harbour, and cutlery clinked on the terraces at the Plaça del Mercat. A couple from New York, curious and a little in love with the old town, stopped at a street café. A friendly conversation with someone offering properties, an invitation to view a flat – two appointments later they signed what appeared to be a proper purchase contract. Weeks later, around €1.1 million had disappeared from their accounts, while the alleged old-town flat still appeared as available in the land register.

The central question

How could a formally plausible property purchase turn so quickly into an international money trap?

Analysis: Where the chains of trust and law broke

On paper everything looked “correct”: a reservation agreement with the notary, a ten percent down payment, a deadline for the balance, copies of IDs, finally signatures. Such formalities create a sense of security — and that is precisely what fraudsters exploit. In this case several tricks were combined: manipulated emails with new payment instructions, transfers to a corporate account on the mainland at a bank near Málaga, recipient companies with opaque structures and an alleged attorney with an address in Denmark. The supposed seller used a Belgian identity with residence in Costa Rica. An international web that complicates investigations.

Little attention is paid to how quickly money flows can be concealed across borders and corporate veils. Email headers are forgeable, letterheads are copyable, and during the rush of a short stay in Mallorca there is often neither the time nor the nerve for thorough checks. Buyers who are only on site for a few days tend to act quickly — instead of involving the Registro de la Propiedad or independent legal advisers early on.

Underexposed aspects

First: notarial and escrow accounts are not always used consistently. In Spain it is common to handle the final payment via a notarial account or a recognised escrow agent — but in practice parties repeatedly deviate from this. Second: the speed with which banks open corporate accounts is attractive to fraudsters. Often registration is sufficient before comprehensive checks take effect. Third: language barriers, holiday mood and time pressure mean warning signs are overlooked. And fourth: international actors show that local complaints can quickly turn into a cross-border labyrinth in which tracing is expensive and lengthy.

Concrete rules buyers should follow immediately

From conversations with lawyers and investigators on the island, practical precautions can be derived:

1. Telephone confirmation with the notary: Use only the official phone numbers from the Colegio de Notarios. Call personally and confirm payment details before any money is sent.

2. Do not rely solely on email instructions: Emails can be manipulated. Be suspicious of sudden changes to payment information without independent confirmation.

3. Payments only via notary or escrow accounts: Have the final payment go to a recognised notary or escrow account. Only release funds after registration in the Registro de la Propiedad.

4. Independently verify IBAN and recipient details: Have IBANs and recipient names confirmed by the bank branch, via SWIFT contact or through verifiable public registers.

5. Local legal representation: Retain a lawyer experienced in Spanish matters. A look into the land register before payment often brings quick clarity.

6. Involve the consulate and your home bank: The consulate can advise, and the home bank can review or block unusual transactions.

What authorities do — and where limits lie

The Guardia Civil in Inca took the report; an investigative court in Torremolinos is now responsible. Such cases become international quickly: banks, shell companies, false identities and rapid transfers across several countries make recovery of funds difficult. Even if investigators find traces, a verdict can take years or recovery may fail entirely.

The clinking cutlery at the Plaça, the roar of the Tramuntana on a windy day, the hum of voices on the Passeig: Mallorca remains a lively place with big dreams. This case, however, is a clear warning: mistrust when buying property is not rude behaviour but common sense. Anyone buying here should trade speed for care — and better to check one time too many than one time too few.

Have you had similar experiences or questions about safe property purchases in Mallorca? Write to us — we continue to follow such cases and explore how buyers can be better protected.