About IbizaSol

    By IbizaSol

    It is a clear fact that foreign capital is strongly committed to the recovery of the real estate sector in Spain. Fundamentally since 2014, several firms have entered in Spain through the purchase of office buildings, shopping malls or logistics complexes. Subsequently, several funds landed in SOCIMI’s that have raised more than 3,000 million to invest in tertiary assets. In recent months, these international companies have taken the leading role in the purchase of land and residential development in Spain, looking for the returns offered by a market that is waking up.

    In the last year these foreign funds have entered with force to the residential business. The soil is still cheap compared to the period before the crisis. In addition, there is confidence in the recovery. These funds are interested in buying land because they have to meet their high capital returns, of around 20%, and it is in the residential where they are now finding these returns.

    These are safe investments for this foreign capital, because there is a lack of new housing after the break due to the brick crisis started in 2007.

    Funds have become in recent months to buy land or reactivate housing, unlike other segments such as offices or shopping centers, where competition is greater. They have injected capital to companies stopped since the crisis and have relied on local knowledge of Spanish partners. It is essential to consider that there are sectors, such as tourism, which are always key to the Spanish economy. Others, such as finance or real estate, are once again gaining prominence and have been among the most active in 2016. By type of investment, foreign direct investment has greatly changed its sectoral composition. There’s a notable increase from 2012 investment in real estate, which in 2015 represented 12.9% of the total productive foreign investment, which has increased to 27.1% in March 2016.

    Real estate investment in Spain will close the year marking a new high. In the absence of a month to finish the exercise, the data indicate that it will exceed 13.9 billion euros, 8% more than in 2015 and 45% more than in 2014. The SOCIMI’s have played the leading role, the main operations in Spain and represent 40% of the total investment. Although the national investor shows increasing enthusiasm (its weight has increased five percentage points compared to last year), so far more than 37% of the investment has come from abroad.

    For foreign investment, we offer legal assistance regarding funds from other countries for investment in real estate and business. Our team has extensive international experience and cooperation agreements with international firms. We are also members of the Association of International Property Professionals (AIPP).This allows us to offer detailed advice in the field of internationalisation by providing services such as: International Trade Consulting, recruitment, formation of companies, subsidiaries and branches and Advice on tax issues

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    Increases the demand for unique properties in Mallorca

    By IbizaSol

    One of the curiosities of the real estate sector in the last years is being the increase of the demand of singular houses. Mallorca is one of the areas with the highest market for high-quality construction, presenting great prospects for the future.

    This growth is being presented in Mallorca at a time of crisis in other sectors. Ibiza and Mallorca, show a very different behavior from the rest of Spain in this segment. What had traditionally been German and English demand, spent a few years on the Russian market and lately the Scandinavian market is entering with great force. Mallorca is a stable and safe area, with extraordinary connectivity with Europe through relatively short journeys.
    In addition, it is a product that, although it can be developed in new soils, these last years is giving more and more in already built buildings undergoing integral reforms, and in extreme case to total demolitions to build a new house. Therefore, it is independent of the scarcity of land.

    When an owner responsible as a house in Mallorca , is looking for a good team of professionals who accompany and advise in all aspects from the beginning to the end of the work. Professionals of architecture and construction who can shape and realize one idea, who can provide alternatives that improve the perspectives, analyze the technical, urban and economic feasibility of this idea.

    Regardless of whether the new owner acquires a plot for building or an old property to reform, it is essential the figure of a lawyer who offers comprehensive service in everything required for the purchase of a property. It is therefore necessary 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.

    • Advice and assistance will be given to obtain a Spanish ID no (called a NIE).
    • Negotiate, amend and finalise the terms and conditions of the purchase contract
    • Conduct a land registry search to ascertain the official owner, the description of the property; whether the building is registered and whether there are any charges attached to the property, such as a mortgage, easements or positive/negative covenants.
    • Search at the local council planning department to discover whether the building itself has a building license/permit.
    • Search at the cadastral registry to confirm the cadastral value.
    • Completion of the transaction before a Notary Public. A notary public is a Spanish Public Servant who certifies the capacity of the parties and the content of the title-deed.
    • After signing and the completion of the deal, Property Transfer Tax (ITP, 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.
    • Formally notify the utility companies (electricity, water, etc) of the change of ownership and organise payment arrangements with your Spanish bank.

    We specialise in Real Estate Law and legal and tax advice in the process of buying and selling a property in Mallorca.

     

     

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    Why you should have a property survey before you buy a property

    By IbizaSol

    As we have said on numerous occasions, acquiring a property in Mallorca is a very different process from other foreign countries and requires information and professional advice that facilitates the purchase while minimizing the risks.

    Among other procedures, we strongly recommend carrying out construction surveys previous to the closing of the purchase sales process. These, come in a variety of forms according to the type of property that you are buying.

    Reasons to perform building surveys previous to the buy of a property

    • The building survey will help you to have knowledge about the the property structural conditions.
    • This process allows youto be aware ofany problemsbefore buying ahome and know the location of boundary lines and other lines of occupancy or possession.
    • The survey will certify that the buildings and other improvements, alterations, and repairs to your property that exist at the time of the survey are not in violation of laws.
    • The survey will report your zoning jurisdiction and classification.
    • This knowledge will help you to begin a process of negotiation.

    Main types of survey

    • Condition Report: This is the most basic survey you can get, it is designed to complement the mortgage valuation and just provides light indications as to the state of various parts of the property.
    • Home Buyers Report: this is suitable if you are going to buy a property that is in a reasonably good condition but generates some doubts. It will tell you any obvious major problems, and includes a valuation and an insurance reinstatement value. It also breaches of building regulations set by local councils of different localities of the island.
    • Buildings Surveys: This options is valuable if you are looking at a very old, unusual, listed, timber framed, or thatched property. It is also good to have a full building survey done if you want to do some serious building works and includes advice on repairs. It provides estimated timings and costs, and will tell you what will happen if you do not do the repairs.

    If you are in the process of purchase a property in Mallorca , it’s advisable to appoint an independent surveyor working exclusively for you as a buyer. The cost and type of the survey depends on the size, condition and age of the property.

    We have an in-depth knowledge of the General Urban Plan and the Spatial Plan of Mallorca, and have the best professionals in the field for the island to assist in construction matters and legalisation of constructions in Mallorca.

    In Ripoll & Mateu we work to get total satisfaction of our customers effectively by offering legal services and personalized assistance. Real Estate Law, conveyancing, urban planning and foreign investments in Mallorca are our specialties.

     

     

     

     

     

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    Legal issues to sell a rented property

    By IbizaSol

    As specialists, we talked a lot about the process of buying and selling properties in Mallorca, but it is possible that sometimes an owner wants to sell a rented property.

    The first thing to consider in this situation is that it is a completely legal operation, although we must consider a number of limitations depending on the regulatory regime to which the lease was clamped, depending on the date of signature. This determines the obligation of the purchaser to respect the new lease, depending on the regime to which they are subject:

    LAU de 1964 (signed before January 1, 1995). In this case, the lessee has the right to continue occupying the property until the death.

    LAU 1994 (signed between January 1, 1995 and June 5, 2013) Case in which the lessee is entitled to be in the house until it comply with the 5 years of the contract.

    LAU 1994, following the reform introduced by Law 4/2013 (since June 6, 2013). The lessee is entitled to continue in the house until it comply with the 3 years of the contract when the lease is registered in the Land Registry or for three months if the lease is not registered. Regarding this last point, should be noted that once a renter occupies a rented flat, if the contract is not recorded in the Land Registry, the owner is entitled to put the property on sale.

    tourism-mallorca

    If the rental agreement is registered in the Land Registry, it will remain in effect even if the owner decides to sell the property. This is based on the Reform of the Urban Leases Act 2013, which came into effect as the measure to promote flexibility and development of rental housing market. In this case the tenant must not leave the building until the contract expires not although can be transfer the ownership of it to the new buyer.

    In the case that a rental contract was not registered in the Land Registry, must check whether it is specified in the renunciation of preferential purchase. If this clause was signed, the owner can sell the property to the tenant communicating the eviction with 30 days in advance. If there is the case that the owner does not communicate the sale to the renter, this last can exercise the right to repurchase, purchase the property at the same price that is being sold to third, having 30 days to do it. One last case, if the contract is less than 3 years and is not being communicated the intent to sell before the end of the agreed period, this is automatically renewed up to three years, which prevents the sale to the owner until this deadline is exceeded not.

    As a specialist in Real Estate Law in Mallorca, we offer comprehensive advice in the process of buying and selling property. 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.  We’ll attend you with no obligation.

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    Mallorca, leader destination in holiday rentals 2016

    By IbizaSol

    Spain has positioned as a leader in holiday rental for the foreign tourist who realize short time trips outside their countries. For countries like Portugal, France, Italy, Germany and UK, Spain is the leader destination in holiday rentals.

    According to the latest survey published by the Instituto Nacional de Estadística (INE), the tourists who stayed in hotels during last July were responsible for the 62.4% of total expenditure, while spent 9.2% less foreigners who stayed in holiday rental homes. In the case of UK, Spain brings one of every three booking requests overseas, putting it as the top destination ahead of others such as France or Italy. These latter, Italians, have increased their demand in the Balearic Islands by 85%.  The request of British citizens to holiday rental villas and apartments in Spain has increased by 75% respect 2015; being Mallorca the destination that has strongly grow in this type of offer.

    These data, confirms that the known as “urban bubble” has come to Mallorca in hands of the holiday rental homes. It’s therefore very necessary to apply a legal regulation to the right use of the holiday rental because actually, the Balearic Administration has an outdated autonomic normative  that establish that are exclude from the holiday rental flats, terraced houses and apartments in multi-family buildings and that have forbidden to advertise them in any type of  with the words touristic or similars.

    Planning

    In the same way, its expected  that the investment in hotels reaches to 1.300 million euros in the last months of 2016, according to the forecast that shuffles the Hotelier Report of Spain, where it is expected to occur among 2016 and 2017 a total of 64 opening of hotels, mainly four- and three-star. Of all these opnenings, 18 will be in Barcelona and 15 in Balearics, because the profitability of the hotels in Spain is very attractive to investors. For 2017, the forecast is yhat will be international funds and private investors specialized in hotels whose will invest in the hotel market. It is expected that the hotel investment will continue rising and focusing on added value because investors ensure that the tourist spending will continue increasing.

    The Ripoll & Mateu Solicitors Mallorca foreign investment area offers legal assistance with regard to funds from other countries for investments in real estate and commercial in the Balearic Islands.
    Our team has extensive international experience, we also have cooperation agreements with international firms and are members of the AIPP (Association of International Property Professionals).

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    News about holiday rentals in Mallorca, what should you know?

    By IbizaSol

    A recent article published by the newspaper El Mundo makes a radiograph of the current situation of rental accommodation in Mallorca.

    In the same, is exposed the boom in both tourist and urban leases carried out through large digital platforms that have established Mallorca as a strategic destination.
    As part of this business boom, has exploded the underground economy in the holiday rental sector in the Balearic Islands, in the form of illegal tourist rental.Despite the fact that are being promoted as mere intermediaries between owners and renters behind them there is a spectacular business. Contrary to what happens with hosting companies regulated, in the case of digital platforms, it is unknown whether or not users pay taxes. In fact, in many cases, the same platforms recognize that on their own web pages may have hidden businesses that violate the Tourism Law of the Balearic Islands , which expressly prohibits offer this type of property for tourist channels, and avoid thus the payment of the tax.

    The absence of a clear regulation has generated many doubts in Europe about how to monitor the management of these platforms, so that the Spanish government has authorized Autonomous Communities to control and punish them, if is applicable.

    rental-accomodation-mallorca

    Private individuals can perfectly rent their flats under the Law of Urban Leases (LAU) without registration in the register of Govern and thus avoiding paying the eco-tax, as this state law permits short leases, so that until not modify this law, there will be this kind of rent. In the Balearics is forbidden to rent flats for tourist use, although single-family homes, where tourist services won´t be offered or the property announced on tourist channels.

    It isn´t a legal problem the fact that the owner of an apartment or villa that is not qualified as a tourist can rent it per season if the services are not offered. Similarly, advertising the same channels of tourism, which is forbidden by the Balearic legislation is not enough to determine that there is infringement, since according to the LAU would also be necessary that housing was subject to a specific regime. The infringement is in the fact that the owner rents its property as tourist when the property is not qualified in this way, thus avoiding the payment of the eco-tax, so that tourists staying in their properties do not pay tax.

    law-investment-mallorca

    Avoid this problem is possible renting your holiday villa or apartment through a specialized and experienced company. With over 15 years of experience in the Mallorca Holiday Villas industry, Balearic Villas have the experts & the know-how to create the perfect, independent-living holiday for you. As a rental division of the real estate leaders of Balearic Properties, Balearic Villas specializes in holiday rentals of luxury villas and apartments in Mallorca, Ibiza and Menorca.

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