Mallorca offers many interesting investment opportunities in property. Due to its unique situation in the Mediterranean, the island offers pleasant temperatures all year round, fabulous beaches, 25 golf clubs and more than 20 yacht clubs, as well as an international population. The airport in Palma, has daily direct flights to all the European capital cities, making it the perfect location for either a first or a second residence.
The first step is to decide what type of property you wish to invest in: a seaside villa, a flat in a mansion house in Palma, a country house in the centre of the island, an old farm house to refurbish or a plot of land where you can build your dream house. At Mallorca Realtors, our objective is to help you decide which type of property best suits both your current and future needs, as well as being able to offer you the best deals on the market.
Once you have decided on a property these are the basic steps to follow to proceed with the purchase:
Step 1: Agreement and deposit:
It is necessary to negotiate with the owner and to come to an agreement about the price of the property and the conditions of the sale. In this step, a deposit is often paid to ensure that the property is removed from the market and the lawyers would prepare a private contract. This stage is not compulsory and it is possible to move directly to step 2.
Step 2: Pre – agreement or private sales/purchase agreement “Contrato privado de compra-venta”:
In this stage a private sales/purchase agreement is made in which all of the details of the sale, as agreed by the purchaser and the seller, are included: the price, the conditions of sale, and the hand over date of the property, etc. In this step, the purchaser makes a partial payment of the total price of the property. This is normally 10% of the final price. This step is usually carried out with a written contract called an “arras” and is legally binding for both parties.
Step 3: Final contract or sales/purchase deed “Escritura de Compra-Venta”:
In this final step, the purchaser makes the payment of the outstanding amount of money and legally becomes the owner of the property. This step is carried out in the presence of the Public Notary who certifies the transfer and legally registers the sale and the change of ownership in the Property Register “Registro de la Propiedad”
What does a purchaser need if they are not Spanish? :
A Spanish Fiscal Identification Number (N.I.E.) and a bank account in a Spanish bank.
What expenses are generated by the purchase of a property?
As a general rule it is necessary to calculate an additional 10% over the sale price to cover the expenses incurred by the purchase of the property; the VAT, Public Notary fees and the cost of including the property in the Property Register.
What expenses are generated by the sale of a property?
There are two values which must be taken into account when a property is sold: the municipal appreciation and the taxable appreciation. Both values vary according to the council, the date of purchase and the original purchase price.
Advice from Mallorca Realtors:
In Mallorca Realtors we have a team of experts who can offer help and advice in several languages, not only during the transactional stages of the purchase but also in the early stages of the property buying process.
Majorca is the largest of the Balearic Islands and its capital, Palma, is a cosmopolitan city, which is home to people of many different nationalities. The population of Majorca is approximately 850,000 with nearly half of these inhabitants residing in and around Palma.
Living in Majorca is a luxury. Why? – Firstly, because the Majorca offers a pleasant Mediterranean climate, with many days of sunshine throughout the year. Then, of course, there are the fabulous beaches with crystal clear turquoise blue water which can be found all around the coast. In addition to this there are a large number of yacht marinas and other sporting facilities such as 25 golf clubs, innumerable marked paths for walkers, riding clubs, cycle routes, polo, diving and an infinity of other activities.
The Tramuntana mountain range, situated in the Northeast of the island, has been declared by UNESCO as a world heritage site. The airport has daily flights to the majority of European capitals and offers an area for private jets.
It is also important to mention the great selection of accomodation on offer, ranging from luxury seaside resorts to hotels specialising in golf, or from charming country hotels in the centre of the island or in the mountains to refurbished mansion houses in the city.
So, what better place to live and work than in Majorca ?
Palma, Majorca :
Palma is a majestic and historical city, which opens onto the extensive Bay of Palma, something which gives its inhabitants the gift of light, sun and sea. The historical centre is very well conserved and clean, with some spectacular mansion houses, many of which have been refurbished as luxury dwellings. These mansion houses can be found both next to the city walls which separate the old town from the sea and in the streets near to the ‘Paseo del Borne’, in which you can find some of the best shops in the city, as well as bars and cafés, art galleries and a variety of other businesses.
Other charming residential areas of Palma with high property values include; Portixol, which was an old fishing village, El Terreno, Génova, Bonanova, La Vileta, Son Vida, Bendinat, Illetes and Establiments.
The West Coast:
A beautiful and varied coastline with some exclusive holiday resorts, such as Calviá, Son Font or Andratx, and some more residential, traditional villages, such as Esporles, Estellencs, Puigpunyent, Valldemosa, Deiá, Soller and Port de Soller. Some of the above mentioned villages having been named as the most beautiful in the world, whilst others have been home to famous people, such as Chopin, Arch Duke Luis Salvador of Austria and Robert Graves.
The North Coast :
Astounding from the cliffs of Formentor to the peaceful Bay of Alcudia. Together with Pollensa and Port de Pollensa, this is one of the most traditional holiday areas on the island.
The Central Plain:
This is a very rural farming area, with fields of almond trees, fig trees, sheep and vineyards. The small villages of Alaró, Selva, Sineu, Algaida, to name a few, offer character, village life and traditional street markets.
The East Coast:
There are so many small bays and beautiful beaches to discovery and enjoy that the local inhabitants would like to keep this area a well guarded secret ! Some places where you can begin your journey of discovery are Artá, Capdepera, Cala Ratjada and Canyamel.
The South Coast:
One of the least populated areas of the island with hidden treasures both inland, with some spectacular country houses, or near to the sea. A few places to look out for are ; Felanitx, Santanyi, Campos and Cala d’Or.