The challenges of the real estate sector, is the underlying theme that has been discussed in the recent Sustainable Urban Development Forum organized by the newspaper El País and sponsored by Castellana Norte District.

The Spanish regulatory complexity is one of the difficulties that the housing market and complete legal certainty lives the objective to be achieved
Even so, experts agree that it is unlikely that a new bubble, especially by the lack of mortgage financing. In 2006 about 1.3 million loans were granted. In 2014, this figure barely reached 350,000 nationwide and is expected period of price stability in housing.

In these sense, if you intend to purchase a property in Majorca from a foreign country like England or Germany, you should consider that both the jurisdiction and the processes to be carried out and the roles of professionals involved in it are different. Throughout the whole process, the presence of a lawyer is essential to be responsible for providing obligatory advice to clients on legal, tax and legal liabilities acquired during the action of sale.

mallorca-property-law

Juan Mateu Bou, as specialist in Property Law in Mallorca and advisor in the process of purchasing properties, advices us about the aspects that we must consider.

 “For a foreign buyer is essential to have the services of a firm of lawyers specialising in real estate law with multilingual abilities to offer totally reliable and understandable advice to the customer” affirms Juan.

Which are the initial steps when acquiring a property in Mallorca from a foreign country?

The “due diligence” is the first step, it include the process of accessing information contained on the Title Registration, which is a public record. This Registration will confirm the registered owner of the property and provide information on any charges outstanding on the property.

The final step is the urban location of the property and the recognition of its existence by the planning authority covering the area in which the property lies.

What happens once the buyer has decided to purchase a property?

This is the moment when the purchaser can puts down a deposit or down payment. The agreement of transfer of ownership is formalised before a Public Notary in accordance with the terms of the contract. Once the contract is completed, the transfer or delivery of the property is made to the purchaser.

The Transaction is done before a Notary Public, a public notary certifies the capacity of the parties and the content of the title-deed.

What are the payments that must be made?

Property Transfer Tax (currently a progressive tax from 8 to 10%) has to be paid to the Balearic Islands Tax Authorities within 30 days of completion, in accordance with a general tax rule; also VAT (IVA in Spain) might also be applicable in other types of transactions.

What should we do once this process is complete?

Once finished the purchasing process are many formalities to be done like notify the utility companies (electricity, water, etc) of the change of ownership and organise payment arrangements with Spanish Banks.

Ripoll Mateu Solicitors  understand that it is vitally important for any purchaser of a property in Spain to obtain independent and professional advice. Ripoll Mateu can advise you on all matters relating to the purchase of your property. Our customers  confirm the safety and benefits of our work

You can contact us through our form in our website, we will attend with no obligation. Our team is committed to providing the best work processes to provide you with the best results, in a constant quest for professional excellence  establishing external collaboration when circumstances require.

0

The challenges of the real estate sector, is the underlying theme that has been discussed in the recent Sustainable Urban Development Forum organized by the newspaper El País and sponsored by Castellana Norte District.

The Spanish regulatory complexity is one of the difficulties that the housing market and complete legal certainty lives the objective to be achieved
Even so, experts agree that it is unlikely that a new bubble, especially by the lack of mortgage financing. In 2006 about 1.3 million loans were granted. In 2014, this figure barely reached 350,000 nationwide and is expected period of price stability in housing.

In these sense, if you intend to purchase a property in Majorca from a foreign country like England or Germany, you should consider that both the jurisdiction and the processes to be carried out and the roles of professionals involved in it are different. Throughout the whole process, the presence of a lawyer is essential to be responsible for providing obligatory advice to clients on legal, tax and legal liabilities acquired during the action of sale.

mallorca-property-law

Juan Mateu Bou, as specialist in Property Law in Mallorca and advisor in the process of purchasing properties, advices us about the aspects that we must consider.

 “For a foreign buyer is essential to have the services of a firm of lawyers specialising in real estate law with multilingual abilities to offer totally reliable and understandable advice to the customer” affirms Juan.

Which are the initial steps when acquiring a property in Mallorca from a foreign country?

The “due diligence” is the first step, it include the process of accessing information contained on the Title Registration, which is a public record. This Registration will confirm the registered owner of the property and provide information on any charges outstanding on the property.

The final step is the urban location of the property and the recognition of its existence by the planning authority covering the area in which the property lies.

What happens once the buyer has decided to purchase a property?

This is the moment when the purchaser can puts down a deposit or down payment. The agreement of transfer of ownership is formalised before a Public Notary in accordance with the terms of the contract. Once the contract is completed, the transfer or delivery of the property is made to the purchaser.

The Transaction is done before a Notary Public, a public notary certifies the capacity of the parties and the content of the title-deed.

What are the payments that must be made?

Property Transfer Tax (currently a progressive tax from 8 to 10%) has to be paid to the Balearic Islands Tax Authorities within 30 days of completion, in accordance with a general tax rule; also VAT (IVA in Spain) might also be applicable in other types of transactions.

What should we do once this process is complete?

Once finished the purchasing process are many formalities to be done like notify the utility companies (electricity, water, etc) of the change of ownership and organise payment arrangements with Spanish Banks.

Ripoll Mateu Solicitors  understand that it is vitally important for any purchaser of a property in Spain to obtain independent and professional advice. Ripoll Mateu can advise you on all matters relating to the purchase of your property. Our customers  confirm the safety and benefits of our work

You can contact us through our form in our website, we will attend with no obligation. Our team is committed to providing the best work processes to provide you with the best results, in a constant quest for professional excellence  establishing external collaboration when circumstances require.

0

Recent economic and real estate market data show that real estate leadership has returned to Spain, highlighting in some communities as Balearics, it’s a fact that foreign investment has placed its focus in the brickwork.

Spain is positioned as one of the main European markets with Madrid and Barcelona as a star destinations and REIT (Real Estate Investment Companies) in front of the revitalization of the market. More than a third of foreign investment in Spain focused on brickwork along last year.

mallorca-investment

Spain has become a focus of great interest to international investors who see in our country profitable opportunities in different markets and in different areas depending on the type of asset. According to the Registry of Foreign Investment of the Ministry of Economy, the construction sector and real estate activities captured 34.5% in foreign direct investment in 2015. This means that one of every three euros of international capital received by the Spanish economy in 2015 was destined to construction-related activities. Such that channels investment tripled its profits in 2015. The SOCIMI‘s (of which we have discussed in previous articles) stand out as major market cheerleaders, going from 89.5 million euros in 2014 to 251.2 million last year, according to the CNMV. In 2015, of the total investment in real estate assets, 41% corresponded to SOCIMIs, which allocated 5,237 million euros to asset transactions. The real estate industry is experiencing a period of normalization and stabilization with sustainable growth in a more mature and more professional market. The price of housing was up 1.4% between January and March, according to Tinsa Valuer, whose forecasts point to increases of 5% for the full year.

property-investment-mallorca

In order to expose international investors the country’s macroeconomic situation and plans of Spanish companies is being held in Madrid the Spain Investors Day, a meeting is attended by about 200 investors from Switzerland, United Kingdom, Germany, Belgium, France, Denmark, Canada, Singapore, United States, Austria, Italy and Spain with the 40 large Spanish listed attendees can meet to do business.

Do not hesitate to contact Ripoll & Mateu Solicitors Mallorca if you want to know more about the Real Estate Market situation in the Balearics. We offer legal assistance regarding funds from other countries for investment in real estate and business.

1