The average price per square meter of a standard 2nd hand property in Spain is around 1,600€. More than double that figure, at almost 4,000€/m2 are luxury properties. Even if this value has been decreasing over the last few years, the luxury housing market is still in full form.

The most common type of luxury properties offeredare: houses (29.54%), followed by villas (27.84%) and theapartments (17.42%).Usually they will have 4 or more bedrooms and same number of bathrooms, kitchen, living room; the majority of those costing above 1 million euros also feature swimming pool, garage and air conditioning/ central heating.

If the Balearic Islands are already in the top5 of regions with the greatest offer of luxury properties for sale (together with Málaga, Madrid, Barcelona and Alicante), the islands actually stand out in terms of proportion of this type of property compared to number of standard properties on offer.

Furthermore, amongst the five most expensive properties for sale in Spain, two of them are in Mallorca: a Renaissancestyle mansion in Alcudia (30 million euros; nine bedrooms, swimming pools, heliport and garage for more than 12 cars) and a medieval farmhouse in Puigpunyent (26.5 million euros; total property area of 820,000m2, 4,000 m2 for the ten bedroomed house that is surrounded by more than 9,000 olive trees)

On the Spanish luxury property market, there is more than enough domestic demand, but as property prices rise above 2 million euros, it is theforeign client taking over. Latin American buyers, for whom Spain is a preferreddestination in Europe, are taking the lead on big cities whereas clients from other European countries dominate the coastal areas, especially in the search of a second home.

Also gaining importance are Asian clients that see their real estate investment also as an opportunity to legally enter Spain and the European Union by acquiring a “golden visa”.

These golden visas were introducedin the midst of 2013’seconomic crisisto attract foreign investmentbut the program faltered in its beginnings due to the harshness of the requirements imposed. Nowadays these visasare only given to non-EU citizens who fulfil at least one of these requirements:

  •             Have at least half a million euros to invest onreal estate;
  •             Have more than one million euros in their bank accounts;
  •             Have more than two millioneurosin government bonds;
  •             Are considered «highly qualified» professionals.

The investment in real estate, totalling more than 2,550 million euros, is probably the best known of these conditions,having allowed foreign citizensto obtain so far over 3,400visas or residence permits in Spain. Topping the list are Chinese citizens, followed by Russians and Ukrainians and not surprisingly, the biggest investments of this kind were done in the Balearic Islands.

Lately, the European Parliament has beenexpressing concernsregarding the golden visa programsthat exist in various member countries, as the potential economic benefits do not compensate for therisks of money laundering and tax evasion. They also defend that there isa significant impact on the real estate sector when these programmes are highly dependent on it – first comeshigh demand and with it an increase in the price of properties. Finally, they say that the idea of directlyor indirectly selling EU citizenship, «undermines the very concept of European citizenship”.

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There are various aspects one should consider before investing in Real Estate. Although it seems to be more profitable to invest in Real Estate than in financial products offered by banks and other financial institutions – buying with the intention of renting out, shows to be as profitable as 7,5%  for shops; 6,8% for business premises; 4,6% for garages and 3,6% for residential properties – the tax circumstances need to be taken into account for each case and market so that nothing takes you by surprise when it comes to income tax or other taxes related to  property purchases.

One of the most important decisions is wether to buy a new property or second hand, knowing that second hand properties have a disadvantage as you will have a 5-10% cost increase due to a Spanish tax on capital/property transfers (ITP – Impuesto de Transmisiones Patrimoniales). Different ITP % is applicable in different Autonomous Communities which makes it also very important to decide where to invest. In this aspect, you must also take into account other local taxes that might be applicable in different municipalities (for example, tax on increase in urban land value, paid by the seller).

On another hand, you will have to consider other taxes that will aggravate the total cost of your investment:

VAT (IVA – Impuesto sobre el Valor Añadido): On second hand properties, there might be a waiver of VAT exemptionif the seller and the buyer are a company or an individual officially registered as a landlord, and both parts agree to submit to this tax. In most cases, there is a reverse charge mechanism and the buyer does not actually pay VAT.

Notary and property registrationexpenses: will add up 2-3% to the total buying price of both residential or comercial properties.

Income Tax (IRPF)/ Corporate Tax (Impuesto de Sociedades): revenue made from real estate assets by form of rentals is taxed on individuals according to their financial tier and on companies around 25-28%. Once you stop investing in an asset, real estate gains will also be taxed at around 24% for individuals, andover 25% Corporate Tax for companies.

Property tax: it is a direct, general and individualtax, established and regulated by the State, although its total yield, as well as certain regulatory powers, areassigned to eachAutonomous Community.

Tax on capital/property transfers (ITP – Impuesto de Transmisiones Patrimoniales): as mentioned before, differs between each Autonomous Communities and taxes property and rights byinheritance or donation. To try to avoid it, there is the alternative of creatinga family business, whichis exempt fromproperty tax and a has a 95% bonus in property transfers tax, as long as all legal requirementsare respected.

Our foreign investment area offers legal assistance with regard to funds from other countries for investments in real estate and commercial Islands. Our team has extensive international experience, we also have cooperation agreements with international firms.

 

 

 

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The Tourism Intervention Plan that has been recently approved by the Consell de Mallorca, with the objective of being a planning instrument that regulates the main economic activity of Mallorca, brings news regarding ratios to distribute the holiday rental places.

The main premises are the following:

  • New licenses are limited to 000 during the next few years
  • The supply limit of 430.000 beds fixed by the Tourism legislation remains the same
  • The Consell de Mallorca will distribute the new accommodations with intensity criteria

The large touristic areas of Balearic Islands that overcome 120 accommodation places per hectare (10,000 square meters), will not be allowed to take in new ones – hotels or holiday rental places. The average of tourists per hectare in urban land for new touristic places is fixed at 25. In touristic areas it ranges between 30 and 120 tourists per hectare.

The Tourism Intervention Plan sets a maximum capacity of touristic accommodation in Mallorca of 430.000 places, that are divided in 315.000 for hotels and 115.000 holiday rentals. In the areas considered as second home, licenses will be allowed if 12 places per hectare are not exceeded. All this respecting the average of 25 tourists per hectare of urban land in Mallorca.

In the case of touristic areas considered of medium occupation, the limit is fixed at 45 places per hectare, and for low occupation areas, the number goes down to 30 places per each 10,000 meters. Cala Millor, Cala Bona, Son Moro, s´Illot and Calas de Mallorca are added to the list of saturated touristic areas. In these areas, new  holiday rental licenses will only be authorised during two months every year, one in low season and the other July or August. Furthermore, the saturated areas shall be  governed by Comprehensive Improvement Plans, with the aim of being reconverted.

Another issue that has been discussed lately is the well known agro-tourism, a way for farmers and ranchers to welcome up to six tourists in their homes and complement their activity. This is one of the most controversial issues of the Land Law that is currently on public display.

If you are an owner and need more information on holiday rentals in the Balearic Islands do not hesitate to contact us. At Ripoll & Mateu Solicitors Mallorca we advise, defend and represent our clients at all levels. Our greatest asset is an infrastructure of professional leaders in each field of action, especially Real Estate and Tax, as well as our international multilingual and multidisciplinary team.

Our 30 years of experience in legal practice in Mallorca, as well as our constant process of renovation, internationalisation and specialisation has led Ripoll & Mateu to become a clear example of service quality and hard work.

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The average price of luxury properties in this region was around 6,700 euros per square meter in the first semester of the year, what implies an increase of  3% compared to same period last year, according to the last real estate reports published.

The tendency has continued upwards, since the 6,500 euros of the first semester of 2017 and the 6,075 euros of the first semester of 2016.

Most of these properties have very specific characteristics. The luxury real estate sector focus on properties with a price range from 500,000 to three million euros and with an area of between 150 square meters and 500 square meters.

The average selling time of a luxury property during the first semester of the year has been 5 months at a national level, 10% less than the average in 2017, and only 2 months in the most touristic areas, the same selling time as in the second semester of 2017. By nationality, the French have been the fastest buyers of luxury properties, with an average of 2 months, followed by the British and German (3 months), Belgian (4 months), Scandinavian and Russian (5 months), Spanish and Italian (6 months)  and Chinese (8 months).

Regarding the Balearic Islands, the increase in prices has exceeded a year-on-year increase of 5% bordering in some cases levels of 10,000 euros per square meter. The good climate of the Mediterranean is the perfect claim for those seeking a second residence, buying or renting. Tourism demand is usually quite high, which encourages investors that seek the profitability of sun and beach tourism.

Foreign investors play a fundamental role in the Balearic real estate market. In the first quarter of this year, one out of every three properties sold on the islands was bought by foreigners and, together with the Canary Islands, the Balearic Islands are the preferred destination for foreigners to invest in housing in Spain, according to data from the Registrars Association.

The exposure of the Balearic real estate market to foreign demand remains high and growing. Although it is considered that in this situation there are still no clear symptoms of a bubble, it is not strange to think that the current price rises seem unsustainable and should begin to moderate during 2019.

To this solid demand contribute a favorable economic cycle – the expansion cycle will continue – the lower level of unemployment and the positive evolution of employment, as well as better access to financing. Not forgetting the boost of investment in housing in a scenario of interest rates close to 0% in savings and even the negative profitability currently provided by fixed rentals in the short and medium term – the gross return for house rentals stands at 4.1% according to data from the Bank of Spain.

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Although in the last two years symptoms have already been detected and very positive data has been recorded in the Spanish real estate sector, it is in this year 2018 when the housing sales figures are expected to reach their best data since the end of the economic crisis.

The figures expected for this year according to numerous studies would reach 550,000 transactions so that all expectations would be exceeded. In fact, in the first quarter of the year, the average price of housing completed in Spain grew 3.8% year-on-year driven by Madrid and Palma de Mallorca, which recorded the highest increases with 17% and 14.7%, respectively. Prices are rising at a good pace and recovering much of the value lost during the economic crisis when the price of housing sank. And it is estimated that the price of housing rises this year around 5 percent, which added to the increases of previous years shows a clear recovery of the real estate sector.

At the state level, prices rise moderately, construction slowly recovers, gaining little by little in numbers of workers and employed in the sector and sales are growing at a good pace, but this does not mean that there is a bubble in the market. What the data do indicate is that there is a shortage of empty flats in the center of large cities and in important tourist spots such as Mallorca or Alicante.

Another phenomenon to take into account is that according to Aptur, 60% of the owners who can’t regularize their situation choose to sell and practically all operations are carried out to foreign citizens.

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Another of the thermometers that marks the recovery of the sector, perhaps the most important, is the price of real estate. All the forecasts pointed out that the increases throughout this year would be around 2.5% to 6%, although in the big cities such as Madrid and Barcelona, and also in the Balearic Islands, the increases would be even more pronounced. Prices are growing at a similar rate (5%) to what they did in 2006, but they are still 40% below the highs of those years, except in large cities and islands, where that distance is reduced to 20 % or 30%.

Experts believe that the main levers that drive the demand for housing are the economy and employment, so they consider that the good prospects in the short and medium term in these two areas invite us to think of a residential market embarked on a path of recovery of prices and transactions. As employment stabilizes and wages increase, it is expected that it will also improve the access capacity to face the purchase of a house.

Similarly, the flow of investment, derived from the unusual context of low rates (attracted by assets adjusted in price by the crisis and with good prospects for profitability by rent), has led to intense growth in certain areas of these two large cities and in municipalities of great tourist attraction, such as Palma de Mallorca.

In Ripoll & Mateu Solicitors Mallorca , we offer our clients a comprehensive service in everything required for the sale of a property.

 

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Palma is the Spanish city where real estate investment is most productive, with a price growth of 16 percent in the last quarter of 2017 compared to the same period of 2016.

A recent study compares the evolution of prices in Barcelona, Madrid, Palma, Malaga and Valencia and notes that Palma is taking over from Madrid and Barcelona in terms of profitability.The demand for real estate products by foreigners in the Balearic Islands is booming, not in vain the investment of residents from outside Spain represented in 2017 almost half of the total expenditure on registered housing.

Mallorca is considered a leading destination to invest in a second home. Buyers value the infrastructure, security, services and entertainment offered by the island, so many foreigners who acquire a residence in Mallorca often spend long periods, even out of high season.

This boom in demand has led to an increase in prices. The southwest of the island (Andratx and Calvià) and the Palma urbanization of Son Vida are the areas where the luxury home recorded the highest price increases. The average cost of the villas in Port d’Andratx reached 4.5 million euros.
This situation has led to the municipalities of Mallorca becoming increasingly wealthy and climb positions in the list of Spanish populations whose inhabitants declare the highest rents thanks to: a more dynamic economy hand in hand with the tourist boost, employment growth without comparison in other autonomies, and a very strong foreign investment to acquire a property on the island.

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We must remember that according to the data of the Government of the Balearic Islands, after growing the economy of the islands by 0.3% in 2013 and 1% in 2014, in 2015 this rate rose to 3%, showing a boost higher than the state. As a reference, in 2016 it reached 4.1% and the estimate is that 2017 closed at 3.8%.

The second key element has been the reactivation of the labor market. Although in 2015 island salaries did not show significant increases, the number of people with a job did increase, which allowed raising the money in circulation. And the third factor is the strong foreign investment that has occurred in recent years in the real estate market of the archipelago, and especially in some municipalities, with the acquisition of high value real estate and income of high income population. Real estate investment companies have found in the strong growth of the tourism sector one of the best investment fields, which is why many of these socimis have set their sights on Mallorca.

In Ripoll & Mateu we work to get total satisfaction of our customers effectively by offering legal services and personalized assistance in civil matters, obligations and contracts of all kinds.Foreign investment area offers legal assistance with regard to funds from other countries for investments in real estate and commercial Islands.

 

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The Council of Ministers recently approved the Real Estate Credit Bill which aims to reduce the costs associated with changes in mortgage contracts and strengthen transparency in property purchase processes.

The proposed regulation lowers the commissions for early cancellation of variable rate loans until they are eliminated after five years of the contract’s validity. The variable to fixed rate conversion will not pay commission from the third year and the fees and notary fees will be reduced.

The reduction of the commissions contemplated by the norm approved by the Council of Ministers focuses on the early cancellation operations and the conversion of fixed-rate contracts. In the case of the cancellation fee, the new percentages apply to mortgages signed after the new Law came into effect, while those relating to the conversion of variables to fixed mortgages affect the mortgage contracts that are currently active.

The cancellation fee for variable-rate loans will be zero as of the fifth or third year of the contract’s validity, depending on what was agreed: in the first case (five years), the limit will be 0.25 per 100 of the capital paid in advance; in the second (three years) it will be 0.50 percent. In the case of variable rates, the maximum percentages that the Bill establishes will be 4% of the anticipated amount if this is done in the first ten years and of 3% if it is later. At present, there is no legal limit for fixed rate loans.

In general, the so-called linked sales are prohibited, that is, those that oblige the consumer to accept a series of financial products as a condition for obtaining the mortgage. In addition, in order to start the execution of a mortgage loan, there must have been nine monthly defaults or 2% of the capital granted during the first half of the life of the loan.

The improvement of transparency is one of the pillars of the new Real Estate Credit Law. In the pre-contractual phase, the bank must deliver to the client, at least seven days before signing the contract, detailed documentation on:

  • Binding offer for the entity
  • Existence of potentially sensitive clauses
  • Centers of evolution of quotas based on forecasts on interest rates
  • Associated insurance

 
During those seven days prior to the signing of the contract, the notary will advise free of charge and verify through the minutes that the consumer has received and understands the legal and economic consequences of the contract he is going to sign. This is a necessary condition for the notary to authorize the deed.

The norm is in the hands of the Congress to initiate the parliamentary procedure and counts on a wide political consensus.

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The news related to the tourist rental in the Balearic Islands doesn’t stop happening, in the last days the most repeated word in this regard has been «zoning». Recently, the “Consell de Mallorca” has announced the implementation of this zoning action that will limit to 60 days a year the tourist rental in plurifamiliares and unifamiliares that are main dwelling in a total of 36 coastal and interior urban cores classified as saturated.

The Balearic Government approved last year the law of tourist rental in the Balearic Islands and a moratorium of one year, valid until August 1, so that the insular councils and the City Council of Palma approve each one according to their criteria and interests in which areas you can rent houses to tourists, either single-family or multi-family.

Until this zoning is approved in a definitive manner, only those homes that already have a license can be rented to tourists, among which there is no Balearic apartment, although it is a highly demanded modality in recent years.
In the case of the coast of Mallorca, the municipalities of Palmanova, Magaluf, Santa Ponça and Peguera are considered saturated. The area of Playa de Palma that belongs to Llucmajor also has the qualification of «saturated»: Bellavista, Cala Blava, Son Verí Nuevo and El Arenal.
In the case of the interior municipalities we find: Alcúdia, Randa (Algaida), Ariany, Banyalfubar, Port des Canonge (Banyalfubar), Orient (Bunyola), Ullaró (Campanet), Deià, Llucalcari (Deià), S’Empeltada and Ses Coves (Deià), S’Eglaieta (Esporles), Estellenç, Es Carritxó (Felanitx), Fornalutx, Marratxinet (Marratxí), Pollença, Es Vilà (Pollença), Es Vilà and La Font (Pollença), Santanyí, Llombards (Santanyí) and Ruberts (Sencelles).
In order to determine the «saturated» interior nuclei, indicators such as the incidence of vacation rental on infrastructures or how the identity of a municipality may be affected if the number of tourists drastically increases has been taken into account..

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Ses Salines, Sóller, Biniaratx and L’Horta (Sóller), Valldemossa, Es Port, S’Arxiduc and Son Ferrandell de Valldemossa have also been included in this category.In the protected rustic land and in the so-called exclusion zones, no holiday rental will be allowed. In those classified as «unsaturated» for example Sineu, Manacor or Inca, renting properties allows unrestricted tourists 365 days a year nuclei.

It’s, without any doubt, a measure that has not been exempt from controversy, and discordant voices have already been raised about it. The Federation of Small and Medium Enterprises of Mallorca (Pimem) considers zoning to be «a direct attack» on small self-employed workers and SMEs, while at the same time defending «equal opportunities in the business world».

If you wish to receive more information about the Tourism Law of the Balearic Islands as well as the recent zoning process, do not hesitate to contact us. Our team of professionals will solve all your doubts and advise you in the most effective way.

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The year 2017 stands out for two fundamental facts: the acceleration of demand and housing prices throughout the country. The growth in the number of sales is revealed through four premises:

  • The closing of buying and selling operations during the first half of the year, becoming the highest figure since 2008. In the last quarter of 2017, 117,068 free home purchase transactions were registered, which added to the total recorded in the year 491,005 operations, 17 percent more than in 2016.
  • These same operations have registered an interannual growth of almost 17%.
  • The sale of new construction housing has rebounded up to an interannual rate of 5%.
  • Prices have experienced an annual increase of 7.7%.

Aspects that have favored the growth in housing demand:

  • The reflection of economic growth in the labor market which has led to a decrease in the unemployment rate.
  • The low level of inflation allows cheap financing maintaining the current interest rates. The granting of new mortgages continues to grow at a good pace, with significant monthly fluctuations, but with an annual accumulation of 11% that could make us end the year in the vicinity of the 315,000 mortgages granted.
  • The profitability of investment in housing; low interest rates and short and medium term fixed income boost the demand for housing as well as investment property.

The general feeling of the national and international real estate sector regarding these increases is highly positive. If the current cycle maintains its actions as it did in the past, we can expect a few years of growth of the real estate market in Spain.

Causes that have led to rising housing prices in Spain:

According to the latest statistics of the Association of Spanish Notaries, residential properties have increased their sales by more than 8% during the year prior to last September. In addition, the prices of these properties have risen 2.4% during that same period of time.

  • Shortage of real estate offer, mainly in «Premium» areas.
  • The upward trend of the large capitals that set the tone for the real estate market at the national level. Prices have grown in a widespread way throughout Spain, but we still have to talk about two speeds. The big markets with the two archipelagos and the capitals of Madrid, Barcelona, Malaga and Valencia are pushing prices up. However, in many areas of the interior of the country it is still difficult to maintain that pace.
    If something differentiates the current situation from what was experienced in the real estate boom, it is the so unequal behavior of prices. Mallorca, stands out significantly from the rest of Spain with an increase of 29.1% in the last year. Balearics has been one of the hot markets of the year with increases at the provincial and autonomous community level of 25%.
  • The increase in rents in the rental of long-term housing due, in large part, to the profitability of tourist rental. The Balearic Islands, with an average price of 12.89 euros per square meter per month, is one of the provinces with the highest rents, only behind Barcelona, Madrid and San Sebastián. 22% of Spaniards live on a rental basis. It is expected that in the next year the number of rental operations will increase with respect to the sale. The price of rents in the last three years has risen more than that of property owned.
  • The average price of finished housing (new and used) in Spain reached € 1,264 / m2 in the fourth quarter of 2017, 4.2% more than in the same period of 2016, according to data from the appraisals made by the real estate valuation company. The most striking change compared to the previous quarter is the slowdown of the market in Catalonia, where the average price has gone from growing 12.5% year-on-year in the third quarter to 8.9% in the fourth, while in the Community of Madrid rhythm has increased from 13.2% to 15.1% in the fourth quarter.

In the Balearics, the price of second-hand housing has experienced a rise of 25.3% during the year 2017 to stand at 2,472 euros / m2. The biggest increase was in Palma, where homeowners have increased the price of their homes by 29.1%, which represents the biggest increase experienced by a Spanish capital in the last year.

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Situation of the new construction market:

The stock of new construction housing accumulated between 2008 and 2014 led to mark a historical minimum of the sale of this type of property in 2016. The new conjuncture during 2017 and the forecasts for 2018 estimate that:

  • The visas for the construction of new construction accumulate an interannual increase of 20% and a reactivation of the new promotions is expected in 2018.
  • The prices of urban land continue in an upward trend leading to an increase in investment.
  • The current situation leads to an increase in activity and competition among promoters and have good prospects for construction in the short and medium term.
  • In inter-annual terms, the granting of permits to start new works grew by 83.8% and 32.4%, respectively. In the first half of the year, the signing of visas was 24.4% higher than in the same period of 2016.

The Spanish property market is accelerating its recovery phase in terms of demand, investment and prices. Residential demand will reach a volume close to 550,000 homes in 2018, driven by improved employment and favorable financing conditions. Everything indicates that during 2018 the real estate market will continue its positive evolution, with increases in the number of transactions and the granting of mortgages, and with a probable rise in prices due to the scarcity of new construction products in large cities. The growth of the real estate sector, together with the increase in confidence on the part of investors and their search for profitability, have led to an increase in the possibilities of investment in the sector.

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Real estate market trends for 2018:

  • The reactivation of the economy and low interest rates are causing a rise in the real estate sector.
  • The increase in prices leads to an increase in the valuations of the assets and, consequently, an increase in the demand of investors.
  • The new Mortgage Law will be a true turning point for the financial system, given that its articles introduce measures that will result in greater security and transparency.
  • Prices will continue their growth rate during 2018 and the barrier of 500,000 operations will be overcome.
  • Investment in construction slowed down in the third quarter of 2017, but its quarterly evolution is very volatile and this slowdown is not significant, its trend shows a high level of dynamism, and by 2018 significant growth is expected.

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.

Ripoll&Mateu can fully assist you in the buying process

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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.

Buying a property in a foreign country can be a complicated affair and fraught with formalities and obligations that the purchaser might be completely unaware of until it is possibly too late. The process of buying a Spanish property is the same for all stages involved: from the initial acceptance of your offer through to the final and all-important transfer of ownership, as well as the registration of the property. It is important for both parties to have an independent solicitor.

That is why we want to offer you some of our recommendations when purchasing your property in Mallorca:

  • 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. Ascertain whether the described property surface area at the land registry is covered (or is in accordance) with the local council license/permit. Search at the habitation department to see if the property has a certificate of habitation.
  • Search at the cadastral registry to confirm the cadastral value.
  • In case of urban apartment, confirm any communal obligations and also ensure that the seller has an updated record of community charges.
  • Verify whether or not all General and Local taxes have been paid up to date.
  • When your attorney draws up the Purchase Option Agreement, the property is formally reserved for you while you carry out the legal and financial proceedings. The sale of a property can be carried out by several real estate agents, for this reason it is very important that you reserve the property when seller and buyer agree a price.
  • 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 (escritura).
  • 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. VAT (IVA in Spain) might also be applicable in other types of transactions.
  • Formally notify the utility companies (electricity, water, etc) of the change of ownership and organise payment arrangements with your Spanish bank.

As a specialist in Real Estate Law in Mallorca, we offer comprehensive advice in the process of buying and selling property.

  • Condominium
  • Urban and rural leases.
  • Real estate, such as purchases, swaps, options, deposits, establishment of real estate companies.
  • Management of deeds, pay real estate taxes resulting from transfers, Registration of Property.
  • Check charges, easements, security interests. Ownership.

Our team is committed to providing the best work processes to provide our customers with the best results, in a constant quest for professional excellence. We establish external collaboration when circumstances require and are firmly committed to transparency and honesty in our actions.

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