Mallorca has been one of the most sought-after destinations for property buyers from all over the world for years. The mix of Mediterranean climate, beautiful beaches and a well-developed infrastructure makes the island particularly attractive. But before you decide to buy a property in Mallorca, there are some important aspects to consider. In this blog post, we address the most important questions that buyers usually ask and give you valuable tips.
Why buy property in Mallorca?
The property market in Mallorca offers a wide range of options - from luxurious villas by the sea to charming fincas in the interior to modern apartments in Palma. Here are some reasons why buying property in Mallorca is worthwhile:
- Quality of life: Mallorca offers a mild climate all year round, beautiful nature and a high quality of life. It is ideal for those seeking peace and quiet, but also for active people who love water sports, golf or hiking.
- Value enhancement potential: The demand for real estate on Mallorca has been consistently high for years. Real estate prices are rising steadily, especially in popular regions such as Palma, Port d'Andratx or Santa Ponsa. Anyone who buys today is investing in a region with stable values.
- Holiday rentals: Many buyers not only use their properties in Mallorca privately, but also rent them out. Holiday properties are in demand and with the right license you can generate lucrative rental income.
What types of properties are there in Mallorca?
Prospective buyers are looking for a variety of property types that meet different needs:
- Luxury villas: Villas with sea views or in exclusive locations offer the highest level of living comfort and are particularly popular with international buyers.
- Fincas: Traditional Mallorcan country houses are ideal for those looking for a quiet country life away from the hustle and bustle.
- Apartments: In cities such as Palma or Port d'Alcúdia, modern apartments close to the centre are in high demand, especially among buyers looking for a property for holidays or as an investment.
What should you consider when buying property in Mallorca?
- Legal aspects: Buying a property in Mallorca differs in some respects from other countries. It is important to hire a local lawyer to help you obtain the permits and check the legal framework.
- Additional purchase costs: In addition to the purchase price, there are additional costs such as notary fees, taxes (approx. 10-12% of the purchase price) and brokerage fees. Plan these expenses into your budget.
- Holiday rental license: If you plan to rent your property to tourists, you will need to apply for a license. Vacation rental requirements and regulations may vary depending on the location and property type.
- Location is crucial: The location of a property not only influences the purchase price, but also the future value development and rental income. Coastal properties or properties in popular regions such as Palma or Deià generally have a higher potential for value appreciation.
Financing and tax advantages for foreign buyers
For buyers from abroad, purchasing a property in Mallorca is straightforward. Many Spanish banks offer financing solutions specifically tailored to international buyers. In addition, foreign buyers can also benefit from certain tax advantages.
- Financing options: With a deposit of around 30-40 % of the purchase price you can usually get a mortgage from a Spanish bank.
- Tax aspects: There are special rules for non-residents who have to pay taxes when renting their property. Consult a tax advisor to take advantage of all the tax benefits.
How do I find the right property in Mallorca?
There are many ways to find a property in Mallorca. Here are some tips:
- Local brokers: Work with an experienced local agent who knows the market and regional conditions well.
- Real estate portals: Use real estate portals to get an initial idea of the market and prices.
- Construction supervision and renovation: If you are buying an existing property, you should also think about possible renovations or conversions. Professional construction supervision and project management ensure that the work is completed on time and to a high standard.
Conclusion: Buying a property in Mallorca
Buying a property in Mallorca is a valuable investment - both in terms of financial and emotional returns. Whether as a holiday property, retirement home or long-term investment, Mallorca has the right property for everyone. However, it is important to obtain comprehensive information before buying and to protect yourself legally and financially.
If you are interested in learning more about the real estate market in Mallorca or need support in finding your dream property, please contact us. MD Immobilien Projekte is at your side as a competent partner.