Tourism is obviously a great growth opportunity, but the boom in property rental for touristic purposes has turned into one of the main concerns of homeowners associations and local governments.

The lack of control over short term rentals of touristic dwellings allowed the increase of long term rental prices and it forced many local residents out of their homes.

The increasing need to regulate this situation led the Spanish government to take action. However, tourism matters are responsibility of each Autonomous Community and urban planning of each Municipality, so the only way the government can regulate touristic housing is by reviewing the law. In this case, clarifying the definition of ‘seasonal rental’ in the Urban Rentals Law and giving more power to homeowners associations through the Horizontal Property Law.

Although law reforms are full responsibility of Spanish government entities, it has been announced that changes will only be made with the consensus of all parties involved: Autonomous Communities, municipalities, homeowners associations, relevant online platforms, hotel owners and unions.

For this purpose, the Ministry of Tourism has recently addressed the 17 Spanish Autonomous Communities and the Spanish Federation of Municipalities and Provinces with a proposal to review the Horizontal Property Law, that currently states that it is necessary to have consensus among all owners to make important decisions or change the homeowners association bylaws.

If the change in the law is accepted and implemented – and it seems that there is a general agreement among the autonomous governments – homeowners associations will have more decision power as it would bring the number down to a majority of three fifths of the owners (that represent three fifths of the total property area owned, which is the actual criterium used by this law) needed to, for example, forbid the touristic rental of dwellings in their building/ community. At the moment, as long as the existing community bylaws are respected, the homeowners associations cannot prevent each owner to rent their property, because their own vote will hold back the consensus. The Spanish government has also proposed to change the Urban Rentals Law, limiting seasonal rentals to periods of minimum 7 consecutive days, not exceeding a total of 45 days per year. However, there is still no consensus among all those involved on this issue.

Also to help the autonomous communities control touristic rentals, and to offer legal security to both property owners and the people renting, it was suggested the creation of a national registry of all housing for touristic use. This registry would make it compulsory to identify the people renting and also make sure homeowners comply with their tax obligations.

If you need more information about the Tourism Law and holiday rental, do not hesitate to contact us. 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 vocation and multilingual capacity.


The Balearic Islands have recently benefited from the escape of capital due to high prices and the moratorium for new hotels in Madrid and Barcelona.

According to the data analysed, the real estate investment market in Spain will close 2018 financial year with figures similar to those obtained in 2017, 13,500 million, or slightly lower, and it will continue in expansion until 2020. In the same way, it is shown that Spain remains one of the most attractive countries for real estate investment and is the fifth European destination that captures the greatest volume of investment, on the list lead by the United Kingdom, Germany, France and the Netherlands. In this sense, investment funds are still the main players in the market, especially those of foreign origin.

The commercial sector in real estate is still the one with the highest volume of professional investment, reaching a total of 2,000 million euros.

Residential professional investment has evolved positively in the first half of the year and housing is still the preferred asset for both large funds and small investors, as 25% of operations have been made as investments.

The Balearic and Canary Islands are the preferred regions of the listed real estate investment company (socimi) that Bankinter will take to the stock market at the end of this year, as they have acquired 10 hotels in both archipelagos, what adds up more than 3,400 rooms. From a total of 23 hotels, 10 are on the islands: 5 in the Balearic Islands (4 in Mallorca and 1 in Menorca) and another 5 in the Canary Islands.

The idea is that these hotels allow to give back an annual dividend close to 5% to all the shareholders of the “socimi”, which will be quoted on the “MAB – Mercado Alternativo Bursátil” (Alternative Stock Market).

The main shareholders of Atom are Bankinter’s private banking clients, with a minimum investment of 200,000 euros and a maximum of 15% of their financial assets, but the bank itself, the manager of the “socimi”, GMA, and some institutional investors also take part in the capital.

This situation has contributed to the increase of private investment in construction. The increase in demand and promotion of housing, the latest impulse in the modernisation of hotels; and the industrial and commercial companies’ activity reactivation, have made the money that has been allocated from the private sector to building or refurbishing projects has increased an incredible 60.6% during the first four months of this year in relation to the same period of 2017.

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.



During the first semester of the current year, the luxury property buy and sell increased 27% in Spain, as the average price increased 19%.

The most expensive houses in Spain are located near the sea, not surprisingly, three of the top 5 most expensive properties are in Mallorca.

An annual report on wealth has been published recently, reflecting  that the number of personal Spanish wealths shot off to 76% since 2008, concurring with the beginning of the financial crisis. At the moment, Spain stands as the 7th country in Europe with the highest number of people with this economical profile.

Mallorca is going through a situation where its attractiveness seems to have multiplied, something that reflects on the record number of tourist arrivals as well as  on the boost of its real estate market, especially visible in the case of high-end products. Because of this, one of its main investments grows: the luxury real estate market.

According to the same report, real estate together with the stock market are the main destinations of these wealthy people’s money, that can lash out between 1.5 and 12 million euros. The Spanish and international buyer’s need of a second home in a unique environment, such as Andratx and Calvià, in Mallorca, made the Balearic market a protagonist in the luxury sector.

The luxury real estate market in the island is in full expansion. The supply of Premium properties is not very high, while the demand is sustained. Especially, the one that comes from the German market. With this appeal for the Spanish and foreign buyer, the luxury real estate segment is experiencing a great moment given the combination of: high demand, sales growth and rising prices.

Not only are we talking about selling, finding a long term rental property in the Balearic islands, at an accessible price, is at the moment more complicated than at the same time last year. The National Association of Real Estate Agents assures that the average price of rental in the islands has risen 12.4% during the last year and is around 10.6 euros per square meter, per month; higher than the peak of 9.6 euros reached in 2007, already surpassed since late 2017. The price increase that began in Palma’s downtown has already moved on to other neighbourhoods. An example is Son Rapinya, where three-bedroom flats are offered for around 1,300 euros per month.

For your investments in Mallorca and the Balearic Islands, 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 vocation and multilingual capacity.

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.


There is no doubt that investing in Mallorca’s real estate is a totally successful decision. Palma is the Spanish city where the investment in real estate is more productive, showing a price increase of 16% in the last quarter of 2017, compared to the same period in 2016.

A recent survey comparing prices of housing in Madrid, Barcelona, Málaga, Valencia and Palma, shows that Palma and Málaga overcome Madrid y Barcelona in terms of real estate profitability

The coastal segment of real estate is the most dynamic one because of the increasing interest of people with savings on buying properties to rent afterwards. The areas that are growing the most are still the ones with safer values.

The sale price in some areas like Palma and Calvià have reached historical highs. In the second quarter of this year the average price per square meter was 2,809 euros in Palma, and nearly 3,500 in Calviá. In both areas the prices have been increasing since late 2014, up to 50%. In the islands altogether, the prices have not yet reached its highest (that occurred in late 2008) although they are very close to it.

In relation to the final price of a property we have to take into account the high interest that foreigners have in investing in Mallorca . This demand has caused that the recovery of new constructions is mostly luxury homes. To this we have to add the increasing demand from residents, that once found a job again, are interested in buying a house. Real estate promoters and agents are aware that there is a much higher demand than existing supply, and therefore the high prices.

In the same way, the number of people thinking of buying a second house in the short term has increased eight points in 2018, comparing to 2017. 18% of the Spanish people are in the process of searching for this type of property, compared to 10% last year. 43% of these potential owners think about buying a property close to the sea and 17% in the town centre of a coastal municipality.

Mallorca in general and Palma specifically are living a new real estate boom and the transactions keep increasing, especially with foreign clients that see the island as a good place to invest in again.

At Ripoll & Mateu we work to bring total satisfaction to our customers effectively by offering legal services and personalised assistance.

For foreign investment, we offer legal assistance regarding funds from other countries for investment in real estate and business.

We offer detailed advice in the field of internationalisation by providing services such as:

  • International Trade Consulting, recruitment, setting up companies, subsidiaries and branches.
  • Advice on tax issues: tax incentives for the internationalisation of companies, income earned abroad, international operations, etc.

On June 26th 2018 the BOIB (Balearic government’s official report) published the first Housing Law in the Balearic Islands, effective from June 27th 2018, and that, according to the Balearic Government, will make it easier for citizens to have access to housing.

The most important aspects of this law are the following:

– The law recognises the citizen’s right to housing and establishes mechanisms to facilitate it, like the increase of the public housing offer for social rentals, and establishing the government’s obligation to facilitate the access of citizens in vulnerable situations (accredited by appropriate entities) to this type of properties or other types if these are not available.

– It will be compulsory for major owners to grant access of their properties that have been empty/ closed for over two years to social renting if there are people in need of housing.

– Major property owners have three months to report all of their properties that have been empty for two years. Not doing this implies a serious penalty: from 3.000 to 30.000 euros.

– A universal and free housing support service goes into operation for all citizens. Its function will be to guide and assist citizens that are in a situation where there is a risk of losing their housing.

– The right of all citizens to basic supplies is guaranteed. Supply cuts can’t be made if the municipal social services recognise the difficult situation of the family.

– In order to encourage public renting, new properties built by public administration will be for renting and can also promote housing with formulas other than ownership (for example: housing cooperatives). The Law details the conditions of use of a social housing dwelling, which must be a regular place of residence. Social housing dwellings can’t be rented, except in some justified cases.

– The law also foresees the promotion of new formulas to make affordable housing available to the public. Thus, it conceives the cession of land (as a temporary cession of surface) to citizens’ cooperatives for the construction of housing. The people who, through the cooperative, have access to these dwellings won’t own them, but they will be able to use them for life.

If you need more information about the new Housing Law, do not hesitate to contact us. Our multilingual and multidisciplinary team will be pleased to assist you.


Balearics is one of the most dynamic real estate markets in the purchase of housing in 2017, the latest data also point to a price increase in the last year slightly above 9%, and 7.3% only during the three months of summer.

The price per square meter stood at 1,953 euros in the third quarter, slightly above the 1.931 euros in País Vasco and a short distance from the 2.004 euros of the Community of Madrid, according to the valuer Tinsa. This unstoppable rise in prices is largely explained by the tourist boom. During the third quarter of the year,Balearic Islands was the largest home sales community, up 21% in just 12 months. In addition, behind Madrid (63,037), Barcelona (51,010), Alicante (32,068), Málaga (28,271) and Valencia (23,644), Baleares was the province where more transactions were recorded (15,158 sales), according to data of the registrars.

The average mortgage in Balearic Islands stands at 145,833 euros, just behind the Community of Madrid, with 184,223 euros, and ahead of communities like Cataluña (138,447 euros) and País Vasco (135,955 euros). In fact, also behind Madrid, Baleares is the second communities with the highest average monthly mortgage fee: 705.21 euros.

During the first eight months of this year 11,000 homes have been sold in the Balearic Islands, a figure that represents a growth of 18.2% over the previous year and based mainly on the sale of second-hand properties.


According to data from the National Institute of Statistics, 9,065 used homes and 1,935 new construction have been acquired in the archipelago. What stands out is the huge difference between the two categories, since the sale of the former is growing at a rate of 25.2% compared to last year, while the latter are down 6.3%.

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

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


Balearic Islands continue to experience strong economic growth in the second quarter of 2017, reaching 3.9%, and stringing eight consecutive quarters with GDP growth above 3.5%.

Balearics data exceed the state average in the second quarter, 3.1% according to the Institute of Statistics of the Balearic Islands, and are well above the 2.2% growth of the European Union in the same period. In terms of economic sectors, services continue to lead growth with 4% and accumulating 6 quarters with growth of 4% or more. Construction, on the other hand, accelerates activity to 3.7%. Visas projects have risen more than a fifth in the first half of 2017, this improvement is expected to be maintained in the immediate future.

The evolution of tourism is marked by very positive results. On the one hand, year-on-year spending increased 12.6% in July, and the number of tourists, a 5.3. In parallel, the number of passengers arriving at ports and airports of the islands increases strongly compared to last year’s figures and become overcome historical records.

The high profits of the tourism sector, have made the interest of the investors have multiplied when looking for its implantation in the island. Palma is among the five Spanish cities with greater pressure from large firms to find commercial premises. The demand for commercial premises or hotel facilities is much higher than the properties that are put up for sale or rent. The interest of companies and investors to take a hollow in the island goes beyond the premises in which to install a trade or a restaurant business and reaches full to the hotel plant.


Outside Palma, the most attractive areas for the investor are to be found in Port d’Andratx, Port Portals, Port de Pollença or Port d’Alcúdia, to name a few examples, due to strong foreign demand.

Palma is considered the main gateway for foreign investments in the Spanish tourism sector. From the legal point of view, the services that are most demanded are related to the mercantile, with the corporate law, the labor law, defense for procedures and assistance in investments. Customers are tourism professionals.

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.
  • Advice on tax issues: tax incentives for the internationalisation of companies, income earned abroad, international operations, etc.

Balearic Islands are one of the great economic engines of Spain thanks to the good behavior of the tourism sector. So much so they lead in 2017 and will lead in 2018 the growth of the Gross Domestic Product.

Never before, the Balearics had grown as much as now. According to recent banking data, the economy of the islands is advancing at a year-on-year rate of 4.4%, a growth so strong that there is no precedent in this century.

In this sense, the complex situation that is going through the Balearic real estate market is fundamentally due to several factors:

– The investment funds, which are buying buildings in different areas of Palma, mostly in the Old Town and, as is the current regulations, are dedicated to making hotels of tourism inland.

– On the other hand, there are the SOCIMI companies that are dedicated to buying real estate assets to subsequently offer a rents to their clients. They buy flats or lots of flats through the bad bank and then rent them.


Foreign investment will continue to reinforce price increases in some high-value areas and will lead to “real estate oases” that will persist over time. Thus, the new fragmentation of the real estate market must be made aware, and there are significant differences within the big cities. However, the distortions generated by the dynamism of some areas, will end up causing many savers to re-consider real estate investment as an option.

The profitability of deposits is close to 0% when the Bank of Spain estimates the gross profitability of housing per rent at 4.29% and puts it at 9.54%, once its revaluation is accounted for. Potentially attractive figures, although conditioned by two important issues: the costly maintenance of a home and its lack of liquidity in stress moments.

Real estate investment is in the center of attention but, unlike the “boom” of the past, we will have to be very selective since the population trend will not accompany in the long term and the additional push of foreign investment will only be felt in specific areas.

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.


Balearic Islands is currently at the forefront of real estate market price leadership with a 7.2% increase between January and June, compared to the same period last year, according to data from the appraiser Tinsa.

The islands have benefited from the incipient recovery of national tourism but, above all, from the strong increase in the number of foreign visitors who, if maintained at the current pace, could reach 84.3 million visitors in the year, an 11,6% more than in 2016. This fact has encouraged the purchase of the rent, but also as a property of own use by many tourists.

We must emphasize that the evolution of housing prices in the Balearic Islands over the last decade has been much more favorable than the whole Spanish geography, because of its small volume of stock, which also would support the safety of properties in these areas as an investment.
It is a fact that foreign citizens are buying more houses than ever in the Balearic Islands. Last year reached a record high, with more than 53,000 sales, despite the decline of British buyers, French and German. The arrival of Swedish citizens has changed the landscape of buying and selling properties in Mallorca, climbing to the fourth position of home purchases by foreigners.


To date, Balearic Islands, operate fifteen Swedish real estate. The Nordics offer a personal shopper service: they explain how they want the home and the professionals are looking for it in the real estate market available. 72% of contacts established with Swedish results in a purchase.

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).

If you intend to purchase a property in Mallorca from a foreign country 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.


Data from recent statistics cast the following conclusions: The average price of second-hand housing in the Balearic Islands has increased by 1.2% in May compared to the previous month, bringing the value to 2,108 Euros per square meter.

  • This figure is 25.5% above the average in Spain.
  • Balearics are the fourth most expensive autonomous region in Spain, only behind the Basque Country, Madrid and Catalonia.
  • The price of new housing in the Balearic Islands has risen 3.1 percent in the first quarter compared to the same period of the previous year.

Balearic Islands are in the spotlight of foreign investors looking to buy a property in the Islands. Last year, the volume of transactions by international buyers exceeded 1,600 million, which implies a 50% increase over the last two years. Luxury properties are the most sought after by European buyers, more interested in buying rather than renting, which has caused a significant increase of the average price so far this year in different areas of Mallorca.

Citizens of Scandinavian origin are playing a very active role in this situation. They have focused on Mallorca to acquire a holiday home, which reaffirms the trend detected by the registrars during the last months of 2016.


Mallorca is popular among the Swedes, and the question is, why? Their fascination for the island is relatively recent and is based on various aspects: the weather, the strength of the Swedish currency (1 euro is equivalent to 9.6 crowns) and the shortage on the real estate industry in this Scandinavian country, which makes it almost impossible for its citizens to acquire a house. Factors that together have caused overwhelming buying and selling. Among the top areas in which the Scandinavians are acquiring properties, highlight goes to Palma center, the old town and various municipalities of Serra de Tramuntana.

Furthermore, there is a neighbourhood in the centre of Palma targeted by every Swedish who wants to invest in Mallorca: Santa Catalina, known as “little Sweden”.

If you are interested in buying a property in Mallorca please do not hesitate to contact Ripoll&Mateu Solicitors Mallorca.

We’re specialists in Real Estate Law in Mallorca and we offer comprehensive advice on the process of buying and selling property.