Mallorca Tourism Law

By AdmSolJM16

Few weeks to the beginning of the tourist season and continuing with the follow-up we made to the situation of the Balearics Law of Tourism, has just confirmed that most of the homes for vacation rentals in Palma don’t meet the requirements set in that law.

This statement is based on data as evident as the fact that while the Ministry of Tourism registers 302 homes of this type, in the capital of Mallorca more than 6,000 tourist homes are rented through the internet.

Recall that the Tourism Law prohibits tourist rental in multi-family buildings.

This circumstance that is not fulfilled in the majority of dwellings, according to the abysmal difference in these registry data. The Balearic Government is studying the implementation of a new standard, which allows rental activity in multi-family housing, with the approval of the neighbors. A decision that has many detractors. From the association of tourist apartments Aptur they argue that this measure is not viable and that the houses in these circumstances are in a lawless situation, since the Law of Urban Leases contemplates to offer tourist services “in any type of house” by a “short period of time”.

palma-old-town

Another novelty that has recently been known is that the towns of Mallorca’s interior will not limit tourist rental and therefore are exempt from distinction between tourist and residential areas, a requirement included in the draft of the Holiday Rental Law.

With this measure, the Government of the Balearic Islands aims to benefit small towns that have empty houses and where the problem of access to a home is non-existent. Thus, the economic activity of these nuclei won’t be restricted. This measure will not give freedom to the tourist rent, since the law sets some requirements when renting, such as accessibility, energy consumption and not having previous penalties in urban planning.

townhouse-pollensa

From Ripoll Mateu Solicitors Mallorca we recommend hiring your holiday home in Mallorca through companies in the sector that are solvent and offer guarantees. Balearic Villas  in Pollença, with over 15 years of experience in the Mallorca holiday villas industry,  have the experts & the know-how to create the perfect, independent-living holiday for you.

 

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Update about Mallorcan economy

By AdmSolJM16

Recent data from the Balearic Government confirm that the economy of the islands grew by 4.1% in 2016, the highest growth in the last 16 years. There were increases in all quarters, highlighting the good behavior in tourism in seasons in which traditionally presents less activity.

In the same report, the Government believes that the ‘Brexit’ will have little impact on the Balearic Islands during this year, following the same line of what happened in 2016 since the process is still in a negotiating moment.

It’s expected that the Mallorcan economy will not be unduly prejudiced in the short term by the UK decision to leave the European Union, despite receiving more than three million British tourists a year and has a population of almost 20 000 residents.

The Balearic economy is in a bullish process

Balearics is experiencing exceptional tourist seasons thanks to the quality of its services and the collateral consequences of the difficult situation being experienced by other countries that in the past were direct competitors in this sector.

Following in the line of these data, it’s to emphasize that in January Balearics received a total of 107,087 foreign tourists. A figure that translates to the arrival of almost 5% more tourists than in January 2016. According to INE data, Germany remains the main emitting country of the Islands, with 46.4% of tourists; Followed by the United Kingdom, which sent to the Balearic Islands 10.4% of visitors.

floor clause-mallorca

The Balearic Islands will continue to grow in 2017, with a forecast of 3.6% after two years of growth. The Government expects that 2017 will also be one of the highest values recorded in the last 16 years, close to the results of 2016, and will represent an accumulation of growth of 11% in the last three years.

The forecast for 2017 places the Balearic Islands in a process of “normalization” of the growth cycle.

Growth is expected between 3.2% and 3.7% in all Islands. By sectors, the gross value added shows positive increases in all activities: the service sector is the one that grows the most, 3.8%.

Another significant finding is that the number of home mortgages increased by 14% in 2016 over the previous year, to 281,328, thus earning its third consecutive annual increase after seven years of declines.

With these very positive conditions, we can consider that it is a good time to invest in the Balearics, especially 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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Mallorca Property Market in 2016, the current situation in numbers

By IbizaSol

Below we offer you the latest information relating to the situation of the property market in Mallorca when only missing four months to finish the year.

  • Balearic Islands is the most powerful area of the Spanish real estate market, as both Mallorca and Ibiza and Formentera are in a clear recovery process.
  • During the first quarter of this year were sold in Balears 3,066 homes, 541 more than during the same period last year, representing an increase of 21.4%. Of these, 2,361 were used and 705 new.
  • In March were sold 972 homes in the islands, 24.5% more than in the same month of 2015amply surpassing average increase of the country, 16.8%. During the month of June, home sales increased 19.4% over the same month of 2015.
  • The acquisition of private housing by foreigners continues to rise. International investors, show high confidence in the property market on the island.
  • Mallorca has become the main destination of Swedes when buying a home in recent years, because since 2013 this trend have enjoyed spectacular growth at around 80%. They have become the third nationality at the time of acquiring housing, after British and German.
  • The type of media operation is around 350,000 euros in the Bay of Palma, although in Deia, Valldemossa and in the rest of Mallorca investment far exceeds 800,000 euros.
  • In Spain, the finished housing prices has moderated in July with an increase of 0.3% over the same month of 2015, compared to 1.5% June. In the case of the Balearic Islands, the finished housing (new and used) has experienced a rise of 1.7% in July, according to the appraisal firm Tinsa.
  • In the Balearic Islands have registered in June the highest rates of annual variation of sale of estates (20.2%), according to data from the National Statistics Institute (INE).
  • According to the record of the sale of registered homes, Balearics is the community with the highest number of transmissions (136) per 100,000 inhabitants.
  • The price per square meter of housing in the Balearic Islands stood in the first quarter at 2,122 euros, the second most expensive of all communities after País Vasco, which stood at 2,190 euros, according to the General Council of Notaries.
  • The markets of the rental and resale property in the Balearic Islands are experiencing a boom evident reflecting increased demand experienced in recent times.
  • Balearic Islands is experiencing strong upward pressure by foreign demand, especially in high-end and luxury sector, which has led to an increase in
  • Calvia, is one of the most expensive areas of Spain, at a rate of 2,835 euros per square meter, and and is encouraged at a rate of 11.4% interannual and could regain its highest price in just over a year.

property-market-mallorca

As a specialist in Real Estate Law in Mallorca, we offer comprehensive advice in the process of buying and selling property. If you intend to purchase a property in Mallorca 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. 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. No doubt to contact us, we will attend you with no obligation.

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