Mallorca offers a promising potential for long-term investments in properties…
Mallorca is becoming more and more popular. The tourism association is very happy with the 2011 season, and there is movement again on the property market. Many interested people are looking for a holiday home, a house, an apartment, a villa, or a suitable second home in Mallorca. Last year property prices settled at about the same level they had five years ago, which makes buying a property particularly interesting.
Potential property buyers are aware of the fact that further price reductions are unlikely at present. Property owners tend to wait and let their properties, but do not want to lower the prices. On the contrary, in good and very good locations we have already observed price increases (e.g. house, villa, apartment, finca, etc).
Among international buyers German-speaking (incl. Austrians and Swiss) and Scandinavian buyers still dominate the real estate market in Majorca. British clients are still more reluctant.
New tax rates
Since July 2010 Spanish value added tax (IVA) has done up to 18%, and the reduced tax rate has gone up from 7% to 8%. Property buyers now have to pay 1% stamp duty and 18% IVA for plots bought. For new developments and first sales buyers have to pay 1% stamp duty and 8% IVA. For resales the stamp duty is 7%.
A top address for Mediterranean quality of life
Over the course of the last 15 years, Mallorca has developed from a sun-kissed holiday destination on the sea to an attractive all-year-round location with the most advanced infrastructure on the Med. Thanks to the modern international airport with a global route network the island is connected to Europe and the whole world. Diverse landscape such as the breathtaking mountain range Sierra de Tramuntana, stunning coastal areas, overwhelming beaches, traditional Mallorcan villages, beautiful properties, and the elegant capital Palma lend this island a special charm. However, there is more to Mallorca. Apart from a range of superb hotels, restaurants and shopping facilities, the island has many international schools, an all-year-round cultural and event program as well as 23 golf courses and 44 marines.