Due to the current market situation, investing in your own property is considered particularly recommendable as a profitable way to invest capital. This also includes the acquisition of holiday homes in other European countries, such as Mallorca. After all, the sun-drenched Balearic island is still one of the most popular travel and emigration destinations for Germans.
High-quality real estate at attractive prices
It is now almost ten years since the Spanish economic crisis and its impact on the economic situation. For the real estate market, this means for the time being that prices will rise in the long term. So good times for buyers: You can currently still acquire relatively inexpensive properties on Mallorca, which can score with a good location like these properties here and also offer a high-quality equipment. The resort of Santa Ponsa is located about 20 kilometers west of the island’s capital Palma and is considered a top tourist destination with its many opportunities. Since many Germans have also settled in Santa Ponsa, there is even a German school here.
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Buyers will also find lucrative property offers in the centre of the island. Here, too, there are numerous properties at reasonable prices, from the simple finca to the luxurious villa. The properties are especially profitable if they can be rented to holiday guests. Because the tourism industry in Mallorca has stable income, which even show increasing trends in some regions. This is certainly also due to the fact that the Balearic island is considered a crisis-proof destination compared to other holiday destinations.
Legal formalities for the purchase of real estate
As the EU states have not yet been able to agree on a uniform set of laws governing the purchase of property in other European countries, buyers of a Mallorcan property must abide by Spanish legislation. For the correct handling of the purchase of a new property it is therefore a sensible idea to commission an estate agent. This ideally has its own office in Mallorca, so that the advice and assistance with the formalities can take place directly on the spot. If they have in-depth knowledge and experience of the local property market, they will also be able to answer questions about price trends and the market value of the property.
A special feature in Spain: Foreign property buyers first need an identification number from the police authority, which is a prerequisite for the competent tax office to issue a tax number. This in turn is entered in the land register. As in Germany, the purchase of real estate must be certified by a notary. What buyers should definitely take into account is the seven percent tax on the purchase price, which the Spanish tax authorities collect after every property purchase.