Tips, tricks and facts about buying a property in Mallorca.

Whether you want to buy an apartment, a luxurious house, an apartment with a picturesque view of the sea or a distressed villa that needs a loving renovation: On the dream island of Mallorca, there are many properties that offer a noble and move and live in Mallorca in a Mediterranean environment.

The acquisition of a property is a long-term investment that should be well considered. Before interested parties settle here domestically, there are some things to consider when buying a property in Spain. For prospective buyers it is important to be informed about the contractual conditions, the types of Spanish houses and the general situation on the market.

What is the current situation in the real estate market in Spain?

Despite the financial crisis, Spain has remained a popular country for German vacationers, investors and other interested parties. Overall, the Spanish market is the sixth largest Mallorca real estate worldwide, transactions are increasing annually by an average of 25 percent. An increase in prices for real estate on the popular vacation island has also been observed. In 2017 and 2018, fixed prices for houses and apartments increased, experts warn of a new real estate bubble.

Prices for houses and apartments rose the most in the area around and in Palma de Mallorca - an average of 5,592 euros or 17 percent more compared to previous years. The buyers of the real estate are younger than a few years ago: Previously, mainly interested parties from 60 years old afforded a property, today the buyers are often 40 to 50 years old. The upswing in the Spanish market is due to the high demand from foreign investors, including Germans.

The first step on the way to the dream property: Finding the perfect place for your home

Buying a home in Mallorca is a long-held dream for many people. The Spanish properties offer plenty of space, a Mediterranean charm and often a spacious outdoor area, which thanks to the appropriate interior already provides at home for beach feeling. Even in the winter months, the climate in Mallorca is moderate and milder than in Germany. Even then, the properties radiate an incomparable beauty and appear even cozier and more elegant thanks to timeless design classics and rustic bohemian chic.

Before thinking about the interior design of the property, the focus is on buying the property. The first step to buying your own property is to decide on a suitable place. This depends on personal preferences. Prospective buyers should be clear which location appeals to them, whether it is worthwhile to use the home there as a permanent residence or whether the property at this location is useful exclusively as a vacation home. The on-site fun & leisure Mallorca and shopping opportunities can also be included in the decision.

In Mallorca, many beautiful houses waiting for new owners.

Find the right property: What types of properties are available in Mallorca?

Prospective buyers are often at a loss before buying a home and wonder what types of properties are available for purchase in Mallorca. Basically, the types of properties do not differ from the houses and apartments that exist in Germany. They bear in Spain only partially different designations.

• In Majorca there are detached houses and villas with enclosed gardens. These houses have modern equipment, plenty of space and ensure sufficient privacy. In the Urbanizaciónes, the Spanish housing estates, there are villas with smaller plots.
• Apartments are cheaper than a house in Mallorca. They have a smaller living area, often an open kitchen and are located in populated residential areas or close to the beach. Simple and practical apartments can be found in Mallorca as well as luxurious apartments with roof terraces, their own underground parking and golf courses.
• The so-called townhouses are priced between the large houses and the smaller apartments. They have two floors and, depending on the equipment, a garden and a pool outside.
• Casas de pueblo are village houses that exude a rustic and authentic flair. At first glance, the traditional properties have a layout of rooms that takes some getting used to. Investors here are upgrading in terms of furnishings and renovating the houses. In contrast to the properties in the densely populated areas, the village houses are located in a quiet environment and in the best case have their own orchard.
• Fincas arepopular homes among national and international buyers. Here the residents get absolute privacy and a relaxing closeness to nature. The offer on Mallorca ranges from small, individualistic country houses to luxurious residences with farms. Unlike other real estate, buyers are forced to pay attention to conditions and legal aspects such as water and electricity supply when purchasing a country house. A personal vehicle is required to leave and reach a finca. Spanish language skills are beneficial in order to use the residence for agricultural purposes.

Formalities and tax matters when buying a property in Mallorca

In Majorca, as in Germany, tax must be paid for a house in Majorca. Foreigners interested in buying a property in Mallorca need a Spanish tax number, which can be used for other formalities equally. The so-called "Número de Identificación de Extranjero" issue the Spanish consulates in Germany or on Mallorca for about 15 euros.

Check the property and the contract with a lawyer before the purchase

When the big day of the inspection comes, it is important to check the property thoroughly. The new domicile should meet the personal requirements. It is advisable to seek professional help and hire a lawyer before the legal process of buying real estate in Mallorca. It may prove helpful to ask for advice from an external real estate agent who is familiar with the local conditions. To avoid personal loss on a private purchase, it is important to check for existing damage to and in the house and to inquire about the last date of restoration.

A reservation should absolutely be subjected to a lawyer's examination and not be signed hastily. In Spain, unlike in Germany, preliminary contracts are effective. Even a verbal agreement is legally valid in Spain. It is better to insist on an individual contract than to use a drafted form, which usually favors the contracting party. Before a prospective buyer signs the contract, it is important to clarify whether the contracting party is the actual owner of the house and whether all verbal agreements are listed in the contract. Buyers have the right to insist on the Escritura Publica de Compraventa, a notarized contract, and to be registered in the land register.