Shares in housing sales increased approximately 17% in March compared to the same month of 2015, adding up to 31,925 operations, according to recently published by the National Statistics Institute (INE) data. These data confirm a quarter-on-year rise. The second-hand market has been responsible for the progress of the sale of homes in the first quarter. Shares of used homes increased by 24.2% year on year, to a total of 25,765 operations.

In the first three months of 2016, housing sales accumulates an increase of 9.2% over the same period of 2015, thanks to advances in 16.9% of operations on existing homes, as those made on new homes recedes 13%. In March, the highest number of house sales per 100,000 population occurred in Balearics (108). And it is that in the long-distance race contesting the Spanish real estate to sell more houses are winning thrashed that used. Sales were up in 2014 for the first time in four years and continue to do so thanks to this typology.

The difference between new and used is becoming larger mainly for the price, something more affordable for the buyer. The used is between 5% and 15% cheaper, the difference between an average home used in Spain, and a new one is approximately 400 euros per square meter according to the Tinsa valuer, being able to reach peaks of up to 1,000 euros difference per square meter in some most exclusive areas. Another point in its favor is that it is engraved with less taxes. Brand new properties are subject to a 10% VAT, while already inhabited support the transfer tax (ITP), whose rate varies from 6% to 10%, along with certain exceptions, have better location. As regards its state obviously it is important. It is possible that the buyer has to invest a few euros in a facelift or comprehensive reform but generally, most customers prefer to buy a house in a nice building, update or reform it to your liking and pay 20% less than you would pay for a new one.

As a specialist in Real Estate Law in Mallorca, we offer comprehensive advice in the process of buying and selling property. Our greatest asset is an infrastructure of professional leaders in each field of action, especially Real Estate and Tax, as well as our international vocation and multilingual capacity.

Mallorca is experiencing the beginning of summer season unprecedented, being the best May in its history that occupation and tourist spending is concerned.

The average levels of hotel occupancy on the island are 85%, between ten and fifteen percent more than last year based on the data provided by the Mallorca Hotel Business Federation (FEHM). The city hotels in Palma are living a historic weeks in occupancy data and forecasts suggest that the average occupancy at the end of the month will be 70%, 3.8% up than 2015. German, British and Nordic, European citizens are capitalizing reserves, highlighting the fact that tour operators have encouraged the marketing of tour packages in their countries to avoid running out of places. Not surprisingly, AENA, states that until the last weekend of October the airport of Son San Joan will see 150,970 aircraft land and take off. This season, the seats will increase 16.5%, 4.3 million more passengers than in the same season last year.

The effect is very strong in some markets, starting with the two most important for the island, the German and British. According to data from AENA, this summer there are 48,041 aircraft movements expected in Germany, 23.2% increase in the largest market that has Mallorca. British client also advanced strongly, are scheduled movements 29,584, 16% more than last year, which will enable the trip up to 5.5 million British passengers, 17% more than in 2015.

These figures confirm the expectation that the Balearic Islands are the community that will grow in 2016 (3.2%) and 2017 (3.3%), according to the Regional Observatory of Spain which emphasizes that the relaxation of fiscal adjustment and increased tourism are the supports of the greatest dynamism of the island regions. The Independent Authority on Fiscal Responsibility expected Balearics to will be the community that will experience higher growth with an increase in GDP, 4.2%. Recently, the agency has reported that the annual rate of national GDP growth over that period to 3.4 percent and the inter-quarterly rate will be 0.8 percent.

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).The foreign investment area offers legal assistance with regard to funds from other countries for investments in real estate and comercial in Balearic Islands. We offer legal assistance regarding funds from other countries for investment in real estate and business. Please, contact us, we will attend with no obligation.

In previous posts we have talked about the so-called real estate visa approved in 2013 by the law of entrepreneurs in order to equate the rights of community residents against those from other countries outside the EU

In the same way to overcome bureaucratic obstacles to encourage investment in debt or housing or an entrepreneur started a business or formalize the transfer of its company to Spain. Since the launch of the program, have captured 1,048 million euros in two years. Of these, 86.9% of the total were for the purchase of real estate, 75 million capital investment and 62 million in new business projects. Investors in real estate assets that have benefited from this initiative have been from Russia and China. Of the approximately 1200 made purchases, with an average purchase price amounts to 765,000 euros, 36% were Russian investors followed by Chinese investors, with 363 operations and 268 million. Foreign investors have massively opted for homes located in the coast and the average amount per transaction was 786,000 euros in the case of Russian investors and 749,000 euro for Chinese investors considering that the law set a minimum of 500,000 euros.

In the fourth quarter of last year, foreigners were responsible for about 15% of home purchases, leading this classification 6 countries: United Kingdom, France, Germany, Sweden, Belgium and Italy. Mallorca is one of the most sought after areas of Spain for the purchase of luxury homes by foreigners having areas of the island where prices are reached 12,000 euros per square meter. The most sought after areas by foreign nationals mainly German, British and Scandinavians are Port d’Andratx , Bendinat, Portals and Santa Ponsa, following by populations of northern Majorca, as Pollença, and in the case of Palma, Son Vida and Old Town. Mallorca has become an area in which the purchase and sale of real estate find highly concentrated in the luxury product.

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

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.

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.

The latest report of the National Commission Markets and Competition (CNMC) considers unacceptable the many obstacles that put regional administration