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Buying Property in Mallorca

Buying Property in Mallorca

Tips, tricks and facts for buying property in Mallorca

Regardless of whether you are interested in an apartment, a luxurious house, an apartment with a picturesque sea view or a renovation project in need of some TLC, Mallorca has something for you. The property market on the island is bursting at the seams with chic, cosy and at times properties in need of love.
Luxury coastal housesBuying a property is a long-term investment that needs careful consideration. There is a lot to take in before you commit to buying a property in Spain for the prospective buyer. Interested parties should fully familiarise themselves with contractual and legal conditions, the types of houses on offer in Spain and the general situation in the market.

How is the Spanish property market looking at the moment?
Despite the financial crisis, Spain has remained a popular country for many British and Irish tourists, investors and other interested parties. Overall, the Spanish market is the sixth largest property market in the world, with sales increasing by an average of 25 percent annually. There has also been a noticeable increase in prices of real estate on the popular holiday island in recent years. Fixed prices for houses and apartments rose in 2017 and 2018, with experts warning of a new housing bubble. Prices for houses and apartments in the area in and around Palma de Mallorca rose the most - upwards of 17 percent (an average of 5,592 Euros) based on figures from the previous years. Buyers tend to be younger than typical buyers a few years ago: In the past, typical overseas buyers were in their 60s whereas today, buyers are often between 40 to 50 years old. The upswing in the Spanish market is due to the high demand from foreign investors.

The first step on the way to buying your dream home is choosing the location
The idea of buying a home in Mallorca for many has been a long-held fantasy for many people. Spanish properties typically tend to offer plenty of space, Mediterranean charm and often a spacious garden or terrace, which, in itself can give the interior of the property that certain beach feeling. Even in the winter months, the climate in Mallorca is temperate and milder than almost anywhere else in Europe. The properties themselves radiate an incomparable beauty and look even more cosy and elegant with timeless design classics and rustic Bohemian chic. It is easy to start getting excited about interior design before you have concluded a purchase so rather than get carried away, we recommend that you commit to the right location for your needs based on your own personal preferences and needs. Apart from the beauty of the location, you need to ask yourself if the location you have chosen would work as a permanent residence or merely as holiday home and how this fits in with your own longer term plans. The ease of leisure and shopping possibilities near to your property are key considerations for most investors.

beautiful homes available in Mallorca
Thousands of beautiful homes are waiting for new owners in Mallorca.

Find the right property: What types of properties are available in Mallorca?
Prospective buyers are often in the dark before buying a home and tend to be unsure of exactly what is available on the island. Basically, the types of real estate do not differ from the residential buildings and apartments that exist in most countries but do have different names and sometimes design features.

  • In Mallorca you will find many fenced or gated detached houses and villas with gardens. These houses have modern facilities, plenty of space and ensure a high degree of privacy. In ‘Urbanizaciónes’, (Spanish private housing estates) you will find villas with smaller plots.
  • Apartments are cheaper in Mallorca than a house for the most part. They have a smaller living space, often an open kitchen and are located in populated residential areas or in close proximity to the beach. Simple and practical apartments can be found all over the island as well as luxurious apartments with roof terraces, private underground parking and even golf courses.
  • Town houses are usually priced between large houses and smaller apartments. They have two floors and, in some cases, a private garden space and an outdoor pool.
  • Casas de pueblo are houses in a village that exude a rustic and authentic ambience. At first glance, these more traditional properties may have an unconventional layout. Investors usually spend a lot of time, money and thought on renovating their houses. In contrast to properties in the more densely populated areas, these ‘village houses’ are located in quieter surroundings and in place of the pool you may just have a small orchard of your own.
  • Fincas are popular homes among local and foreign buyers. These are ideal for those wishing for a bit more privacy and the option of being able to switch off from urban life bu enjoying nature. Mallorca has a large range from small, individualistic country houses to luxurious residences to functioning farms. It is essential that buyers are forced to pay attention to terms and conditions and the legal side of things such as water and electricity supply when purchasing a country house. A private vehicle is required to leave and reach a finca so the cost of that needs to be factored in. Spanish language skills are also more useful in rural areas - especially if you tend to use your land as some form of agricultural business.

country house MallorcaFormalities and tax matters when buying a property in Mallorca
In Mallorca, as in many countries, taxes are levied on property purchases, which means that prospective buyers need a Spanish tax number for the purchase of a property in Mallorca, which can be used equally well for other formalities. The so-called „Número de Identificación de Extranjero“ can be sorted out for you in Spanish consulates in many countries for the modest fee of 15 Euros.

Check the property and contract with a lawyer with a fine-tooth comb before purchasing
When the big day of the visit comes, it is necessary to examine the property thoroughly. Your new domicile should meet your personal requirements. It is advisable to seek professional help and to hire a lawyer before buying a property. It may be helpful to seek advice from an external estate agent who is familiar with local laws and practices. In order to avoid personal losses during private purchases, it is important to pay attention to existing damages in the house and to ask for the last time of the refurbishment. Before entering into a pre-contract (which is a legal requirement in Spain) you should be sure to let your lawyer take his/her time looking at the place and examining the sales contract before you sign in haste and repent at leisure. Be warned that in Spain even a verbal agreement is legally binding. It is better to insist on an individual contract than to use a standard contract proforma, which usually benefits the vendor more than the purchaser. Before signing the contract, it must be clarified whether the signatory of the seller is actually the legal owner of the house and whether all things you have verbally agreed are actually listed in writing. Buyers have the right to insist on an ‘Escritura Publica de Compraventa’, a notarised contract, and to register in the land register.