If you haven’t dealt with real estate in Mallorca yet, you will quickly notice that the amount of offers and information is very large. Therefore, we present you here not only real estate, but also a real estate guide, which makes you familiar with the most important things, before you possibly buy, rent or also sell a real estate in Mallorca.
Many prospective buyers and first-time buyers ask themselves: where and how do I find my dream property and if I have decided on a property in Mallorca, which legal and tax procedures follow? On this page we will answer all important questions to make your real estate purchase safer and more relaxed.
Would you like to find out more about the Mallorca property market? You can also read about this in our guide section:
The Finest Properties Mallorca team has been offering competent and trustworthy purchase advice for real estate and properties as a personal real estate agent on Mallorca for over 20 years. When it comes to properties in Mallorca, we prefer quality: you will find over 750 exclusive Mallorca properties, such as fincas, houses, villas, flats, hotels, apartments, plots and commercial properties.
Our Service: We would be happy to find your dream property. Tell us your wishes about location, equipment and price and we will get started!
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MARKUS REDLICH, CEO
Finest Properties Mallorca
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» Some important information for first-time buyers of real estate.
Since the 2008 economic crisis, the market for immovable property has been booming in Mallorca. Real estate prices have more than doubled in the last 15 years. Experts expect property prices to continue to rise in the future and take this as a good reason to invest in concrete gold.
Other good reasons to invest in real estate in Mallorca are e.g. the low interest rate phase of the banks, the good cultural offer, balanced infrastructure, Mediterranean quality of life, international schools and good accessibility of many European airports.
Thus, Mallorca’s future as one of the most sought-after holiday destinations in the Mediterranean is also secured. Therefore, when buying real estate in Mallorca, we can certainly speak of a low-risk capital investment and with favourable purchasing also with a good prospect of a return.
As already mentioned, before you buy a finca, an apartment, a villa or a hotel on Mallorca, you should consult a local broker of your confidence. It would be important for your broker to know in which region you would like to purchase your dream property and what you would be prepared to invest for it.
Please also read the following article: Real Estate Agent Study Mallorca 2017. Real Estate Agent Study Mallorca 2017 Here you can find out that 2017 properties on Mallorca have increased by 12% on average.
The island’s capital Palma is the „ideal place to be“ for all those who want to enjoy the lively city life and cultural offerings. Architecture lovers will love the old town (La Longa) behind the cathedral, with its narrow alleys and romantic already partly antique old town palaces and its inner courtyards. Top restaurants, Cafe´s, Bar´s, boutiques of all kinds, a well selected cultural offer, and an international audience, make Palma one of the most popular cities in the Mediterranean. Many a buyer first fell in love with this city and then bought an old town apartment or a penthouse apartment with a roof terrace. Also the Paseo Maritimo in Palma, with its bars and restaurants and the fantastic view over the yacht harbour of Palma, has convinced many property seekers to buy an apartment here.
Palma has also become a popular port of call for Mediterranean cruise ships as a result of ship tourism. On summer days, 5-6 large cruise ships dock here in the port of Palma at the same time. The Aida, for example, has its Mediterranean home port here.
The south is sparsely populated compared to other regions and stretches from the southwest, starting at the bay of Palma via Llucmajor to Santanyi in the southeast. The south offers picturesque bays, rugged coasts and Mediterranean dreamy villages. Many of these places live from day tourism. Some villages are connected to small marinas where the sport boat enthusiasts have moored their yachts, as well as some local fishermen have moored their boats. The landscape outside the villages is largely characterised by agriculture. From this many farms (so-called Fincas) developed which are rented or bought today by many Mallorca lovers as holiday houses. If you are looking for idyll and peace, you’ve come to the right place.
In short: You will find here a lot of peace and relaxation with the typical Mallorca feeling. The topography is mostly flat and therefore very well suited for cyclists. Especially popular with holiday makers and residents is the picturesque and long beach of Es Trenc.
The east is a tourist destination along the coast. Famous holiday resorts here are the quieter Cala Figuera, the idyllic Cala Santanyi, Cala D´Or the „white village“ with its countless restaurants and the marina and the still typical Mallorcan village Porto Pedro. In all these places, apart from hotels, restaurants and beaches, there are also locations where you can buy interesting properties, some with sea views. A popular location outside the villages would be the small mountain range, the Serra de Llevent. This gentle hilly landscape is particularly popular with owners of casas and villas who want to enjoy the peace and panoramic views. In the interior, off the coast, there are small towns with the monasteries so typical for this region, inexpensive but good restaurants, galleries and boutiques of all kinds. Many artisans offer their creative skills here.
In short: The east offers a good cross section of the island with mountains and bays. There are also many leisure activities for day-trippers and package tourists. If you are still looking for a quiet place on the beach you will find it at Cala Santanyi.
The Serra de Tramuntana is a mountain range that stretches from San Telm in the southwest to Pollensa in the north. On 27 June 2011 UNESCO declared the Serra de Tramuntana a WORLD HERITAGE. Green mountain ranges and valleys, in which small mountain villages are located, determine the landscape here. Hikers and climbers will get their money’s worth here. The highest mountain of Mallorca, is the Puig Major with a proud height of 1445 m above sea level. In winter there is often snow here, this is also Mallorca. At the northernmost point of the narrow peninsula Formentor, there is the popular viewpoint of the same name, Cap Formentor. Enjoy a wonderful view of the sea and a beautiful and wild nature. Those who prefer it touristic are in good hands in Port de Pollensa, Alcudia and Ca´n Picafort in the north of the island. These are popular holiday resorts for families, but also for friends of nightlife. The bay of Pollensa is a hot spot for sailors, windsurfers and kite surfers. You can find the right equipment on the main road between Alcudia and Port de Pollensa at various surf shops. This region is also popular with cyclists and is also used by many tri athletes as a training area. In the central part of the Tramuntana Mountains lies the famous Sa Calobra gorge, which can be reached both by car and by day ferry from Soller.
Valdemossa is the destination of the day for many holidaymakers and residents. For cyclists in spring and autumn an absolute must on the „To do list“. Martin I, King of Aragon, founded the Cartuja de Jesús Nazareno Monastery of the Carthusian Order in Valldemossa in 1399. Today known as the Charterhouse of Valldemossa, this monastery is one of the most famous monuments on the Balearic island of Mallorca. Frédéric Chopin and his partner, the French writer George Sand, had spent two months here in the winter of 1838/39. Only a few kilometres from Valdemossa is the George Sand residential area with its stone clad facades. Some of these villas have a spectacular view of the north coast of Majorca.
From Valdemossa you also drive in the direction of Soller and reach the picturesque village of Deia halfway. Another well-known village, with some excellent restaurants, which is mainly inhabited by artists and musicians. If you like freshly caught fish, after leaving Deia you should drive about 1 km in the direction of Soller, turn left in the direction of Cala Deia (signs: Restaurant La Caleta and Restaurant Can Lluch). Here, at a small idyllic bay, there are 2 restaurants serving excellent fish dishes on a covered restaurant terrace. The view over the bay (pebbles) is free. From Deia to Soller it is only 11km. Soller is known for its sweet oranges and fragrant lemon groves. Soller can also be easily reached by historic train from Palma. Departure station in Palma is the Plaza Espana in the center of the city. Once arrived in Soller, a visit to the church of St. Bartolomäus from the end of the 17th century is worth seeing. In front of the church there are several Cafe´s and restaurant with free terraces to relax. A tram runs from here to Porto Soller, 5 km away. A coffee or lunch in one of the restaurants at the marina completes the excursion. For real estate buyers we recommend a country house or a town house in Soller from where you can walk to the promenade in Port Soller.
Here you can still find the original Mallorca with small and sleepy places that only come to life on market day. Where low walls neatly separate house and property, villagers sit in the shade of their houses and stray cats walk your path. Here in the centre of the island is Es Plá with the old royal residence Sineu as the centre. At the foot of the eastern foothills of the Serra de Tramuntana lies Inca, the fourth largest city in Mallorca, easily accessible via the M13 motorway. The M13 runs east of the Serra de Tramuntana from Palma to Alcudia. Inca is known for its leather processing industry. Especially shoes and leather jackets are a popular souvenir from Mallorca. Manacor is the 2nd largest city in Majorca with about 42,000 inhabitants. The city is known for its furniture factories and pearl production, which also makes the city interesting for a day trip by rental car. Around Manacor fincas are always wanted for sale.
In short: If you are looking for a quiet and small finca, also real estate in need of renovation with agriculture, you can still make a bargain here. If you are looking for refreshment in summer, you should consider a pool.
The southwest of the holiday island of Majorca is a popular and exclusive holiday and resident region. This is also where most of the island’s luxury properties are located. Above all villas in first sea line or villas in exposed camps with sea view or golf course view, elegant penthouses and sea view apartments are sought after investments. They are usually used for holidays for a few weeks a year. However, the trend is noticeable that many investors let their family live in the property on the island of Mallorca all year round and even commute weekly between Germany and Mallorca to work. Popular places in the southwest are Santa Ponsa, Paguera, Port d´Andtratx, Puerto Portals, Costa den Blanes, Sol de Mallorca, Camp de Mar and our office location Costa de la Calma. By the way: The southwestern part is geographically no independent part, but part of the region Serra de Tramuntana, which extends from northwest 88 km long and 15 km wide down into the most southwestern part. Only this short coastline, starting from the west and extending to south-eastern Playa de Palma, offers open access to the coasts. This region is very popular with holidaymakers because of its beautiful bays and hilly, green landscapes. Mallorca offers a total of 24 golf courses, including Golf Andratx in Camp de Mar, Santa Ponsa 1,2,3 (9 holes), Magaluff and Bendinat. 3 other golf courses are located in the urbanisation Son Vida on the outskirts of Palma. Water sports enthusiasts will also get their money’s worth here. In the southwest of Majorca there are several marinas. The most famous are Porto d´Andratx, Yacht Club Santa Ponsa, Port Adriano has 488 berths between 6m and 80m. The most famous marina after Palma´s Club de Mar is Puerto Portals, which has a total of 670 berths for ships from 8 to 80m long. On the adjacent plot of 8.5 ha there are technical service companies for boats, several restaurants and boutiques. Wanted properties in Puerto Portals are apartments with a view of the marina or villas in the somewhat higher and guarded residential area Costa den Blanes. From here it is only 5-6 minutes by car to Palma.
In short: Discover Puerto d´ Andraxt, which stands out on the hills of the bay with its luxury villas or stroll along the harbour promenade, which is particularly inviting with its cafés and restaurants. Puerto Portals, the noble maritime marina that belongs to Calvia, is also worth a visit. Santa Ponca, Costa de la Calma and Bendinat are also very popular for their exclusive villas and golf courses.
First of all, a property that suits the investor is interesting. Whether one wants to use it privately or buy it as a renovation object or rent it out as an investment object depends on the investor. Therefore it is important for the real estate agent to know where the investor’s journey should go. Accordingly, the broker can make offers according to the search request and the budget. We offer single-family houses, terraced houses, semi-detached houses, apartments, studios, penthouses, villas, fincas, city hotels, country hotels and boutique hotels. Last, but not least, we also treat commercial properties that are interesting for entrepreneurs and self-employed people (or those who want to become one).
Exclusive luxury villas in Bauhaus or Mediterranean Finca style with plot, equipped with pool and a beautiful sea view, are certainly one of the most sought-after properties on Mallorca, but also the most expensive properties. Mostly very modern and luxuriously furnished, with a lot of living space and several bedrooms and bathrooms. Important for the owners of these luxury properties are privacy, tranquility and of course the top location with good infrastructure. You can find such objects in Port d´Andraxt, Puerto Portals, Bendinat, Nova Santa Ponsa and Son Vida. The latter place has a quick connection to Palma, a quiet location with wonderful panoramic views of the city of Palma and the sea in the background. Terraced houses or semi-detached houses are often offered in golf courses and are cheaper than villas on larger properties.
Fincas on Mallorca are the classic among the properties sought after. Finca means in Spanish property, which is used for agriculture and on which there is also usually a house. Mainly these Fincas are to be found in the island center of Mallorca. The trend to the Finca is unbroken, from there is something haste required, if one wants to make here still another good deal.
Die Fincas (Haus mit Grundstück) werden gerne von ausländischen Residenten als Hotel-Restaurant, Seminar- und Yogazentren oder Aussteiger- Refugien gewerblich genutzt. Beim Kauf einer Finca ist allerdings Gründlichkeit in bürokratischen Dingen gefragt, da die Rechtslage oft kompliziert ist.
Um die hohe Nachfrage nach diesem beliebten Immobilientyp zu decken, werden Wohnhäuser auf dem Land als Neubau im Fincastil gebaut, ohne sich aber auf einem landwirtschaftlichen genutzten Grundstück zu befinden.
If you buy a natural stone finca in need of renovation, you save significantly on the purchase price. Usually you get a lot of land and the partly untouched nature and peace is a bonus.
Our recommendation: If you buy a plot of land in the centre of the island and you want peace and quiet, please plan a plot of land that is not too small, because the former agricultural lands often quickly become building land.
Standing in the middle of Mallorcan life is the motto here. These village houses are either town houses or detached houses with small plots of land. If you want to move into a small house in a village on Mallorca, then your will for integration should be very high. Learning Spanish is recommended as many villagers speak neither German nor English. You cannot expect high standards of furnishing in these village houses. However, the purchase price for this simple type of property is usually lower than for a villa or a detached finca. It is recommended to install a heating or air conditioning w/k, if not already installed. Usually there is only one stove or fireplace and this is hardly enough to keep the whole house warm and cosy in winter.
Don’t forget: Mallorca has seasons and becomes damp and cool in winter. Of course you can retrofit every house with a heating system. The costs are kept within reasonable limits. Village houses are offered in all regions of Mallorca.
If you like, you can also go shopping in the security guarded residential complexes called Urbanizaciónes in Spain. In addition, many homeowners also use an external pool and garden caretaker. Also house service services are often employed before arrival and after departure to bring the villa in order. For golfers, a villa or apartment near a golf course is of interest. In some golf residences it is possible to drive with your own golf car directly to the adjacent golf course, e.g. in Santa Ponsa 1 and Royal Golf Course Bendinat.
Hotels or fincas for holiday rentals, bars and restaurants usually work well in Mallorca. But without an effective business plan, enough start-up capital, - and enough reserve to survive 4-5 months in winter, when there are fewer tourists in Mallorca, one should not venture into the adventure of independence. We recommend everyone who wants to set up his own business in Mallorca, whether as a craftsman or in the catering trade, to acquire Spanish knowledge and bring along the necessary legal and industry-specific knowledge, otherwise the purchase of a commercially used property becomes a game of chance. Apart from the legal and tax aspects in a foreign language (probably) for you, your business must generate enough turnover to cover all your running costs. Remember that the price level (such as rents, staff, electricity, etc.) in Spain is not much lower than in Germany. Calculate cool and emotionless, otherwise the dream of independence on Mallorca can quickly become a nightmare for you.
For this we, of Finest Properties Mallorca, stand at your side in an advisory capacity. Based on your ideas about what your dream property or investment property should look like and from the preliminary discussions we will conduct with you in advance, we can present you almost exactly your dream property. If your dream property is not available on the market, we will continue to search for you until we have found something suitable. All properties presented by us were inspected, appraised and priced in advance by our long-standing and experienced employees of Finest Properties Mallorca.
When we have finally found you the property you are looking for, we recommend you to consult a building surveyor who will check the condition of the property and an attorney who will check the legal side of the property, especially when purchasing a finca hotel or a finca house and in advance an option payment. We would be pleased to put you in touch with the appropriate independent experts and lawyers. When purchasing an apartment or villa in an urban setting, the estate agent can check the legality and general condition of the building. Once you have checked the properties and decided to buy, we or a lawyer will draw up the option contract. This becomes legally binding when the option fee is paid to the seller (or in some cases to a notary or lawyer escrow account). The option contract contains, among other things, the deadline for the notary appointment, the purchase price and the legal description of the property. (The purchase price always includes the brokerage fee and is paid by the seller upon notarization).
Should the buyer, for whatever reason, let this option period expire and not appear at the notary date for signing the bill of sale (Escritura), the option fee paid shall lapse in favour of the seller. If the seller does not observe the notary’s appointment by the end of the option period, the buyer can insist on performance of the contract or demand double repayment of his down payment.
According to Spanish law, a notary does not have to certify this contract for a privately sold property. A handshake, a contract on a beer mat or napkin would suffice in principle. But of course you do not get absolute legal security, for this you always need an entry in the land register. You are only on the legally secure side when you receive an Escritura through a notary, the notarial deed of sale, which becomes an Escritura púplica with the entry in the land register.
When purchasing a property, the buyer bears the following ancillary purchase costs: Real estate transfer tax: This is payable on the resale of a property (only for second-hand properties) and varies in Spain, differentiated by region. It is calculated according to the real market value of the property. For the Balearic Islands the following calculation applies:
When buying a new property (sale through a property developer or promoter), there is no real estate transfer tax, but the sales tax (IVA) of 10% and the document tax of 1.2% (AJD). This also applies to the sale of a commercial property such as a hotel or a commercial hall, whereby in special cases the tax can also amount to 21%. The notary fees and stamp duties are approximately 0.5% of the purchase price. Lawyers or Gestorias, who take over the completion of the purchase, usually charge 1% of the sales price or at least 2,000€. Option contracts issued by Finest Properties Mallorca are free of charge for the buyer and the seller. Use the service of a tax representative (Gestoria) in Spain. As a non-tax resident in Spain who buys a property in Mallorca, you are obliged to appoint a tax representative in Spain.
The seller bears the full brokerage fee on Mallorca alone. This is due on the day of notarial certification. Added to this is the municipal capital gains tax (plusvalia municipal or correctly technically called Impuesto sobre el incremento sobre el valor de terrenos urbanos). This tax is based on the appreciation of the land in the municipality in which the property is located and registered.
Furthermore, the seller must pay 20% tax (EU citizens) on the profit made from the sale of real estate, irrespective of whether he is a non-tax resident or tax resident in Spain. In the case of non-resident tax, the buyer already withholds 3% of the real estate purchase price (retencion fiscal - withholding tax) and pays the seller within 30 days at the Spanish tax authorities. This sum can also be deposited with the notary in the form of a bank cheque in the case of notarial certification. A named Gestoria will then forward this amount to the tax office.
At the notary appointment, the seller must present an energy certificate. This is usually issued by an architect. We can recommend an expert to you. The cost of the certificate depends on the size of the property. For an apartment about 200€ and for a villa about 400€.
For non-Spanish buyers, a NIE number („Número de Identificación de Extranjero) must be presented at the notary’s appointment. It is compulsory for non-Spanish residents. Without them, you will not be able to conclude any significant legal transactions on Mallorca, such as rental contracts, property purchases, car purchases, insurance and bank contracts. You can apply for the NIE number online at the Aliens Department in Palma or through a Gestoria or lawyer. Calculate here 6 - 8 weeks processing time. Costs for this are about 150-180€.
Gestorias, derived from the Spanish Gestor, are tax advisors and take care of tax matters such as bookkeeping and payroll accounting on your behalf. As the Spanish bureaucracy is very complicated for foreigners, Gestorias takes care of many formalities and necessary administrative matters, e.g. the procurement of a NIE number („Número de Identificación de Extranjero), without which almost no legal transaction is possible for non-Spaniards. We are happy to arrange for German and English speaking tax advisors.
This is due to the fact that in many cases a broker already has the corresponding interested parties for an object in his customer list. A private sale is always possible, but most properties on Mallorca are offered by brokers. The difference to Germany is that real estate sellers in Mallorca very often commission several brokers to sell their property at the same time. This means that the buyer can find the same property on the websites of different real estate agents.
Why work with Finest Properties Mallorca?
With us, you as buyer and seller have a competent and experienced contact person and market expert, with more than 20 years of island and real estate experience, at your side. We also specialise in luxury properties and hotels of all sizes. But also the buyer who is looking for a property up to 500.000€ will find it with us.
With us you as buyer have a competent and experienced partner and market connoisseur of the island at your side. We also specialise in luxury properties in many price ranges and hotels of all sizes.
To the free services of Finest Properties Mallorca belong among other things:
Make an appointment with Finest Properties Mallorca now and live soon in your new Mallorca property and enjoy the Mediterranean life on Mallorca, for us the most beautiful island of the Balearic Islands.