If we go back in time and we stand at the last quarter of 2014 we found that most of the professionals involved in the Trends in Real Estate Europe report anticipated for 2015 an increase of the value of both prime and secondary assets and derivatives of an increase liquidity and investment needs.

Just about to end 2015 we can say that the provisions have been met both state and insular level. Predictably the year will close with an increase of 26.6% stake in home sales but clarifying that evolution has not been the same throughout Spain and emphasizing that the holiday housing market is particularly active in the Balearic Islands.

In the Balearic Islands have recorded an estimated number of 9,500 shares in sales so far this year of which 78% were for used housing and 22% to new housing. The data used confirm the upward trend of the purchases at the state level and also in the Balearic Islands, which purchases and 8.54 per thousand inhabitants, continued in second place with one of the largest increases in the annual rate of change of around 12%. In addition, it is noteworthy that during the second quarter of 2015 12.8% of the total purchases of property has been made by foreigners. A data which shows a steady upward trend on foreign demand that has driven the price increase by 15% for luxury properties in the most desirable locations of Mallorca.

According highlights the company’s valuation and property consultancy Tinsa in the Housing report in Bay 2015 the coast of the island is in the lead as far as transactions are concerned with three of the five most expensive locations and interest generated in the market real estate, Calvia, Andratx and Alcudia. Buyers 9 of 10 operations coast are foreigners: German, English and residents of the Nordic countries. Other data must take into account, also the particular foreign buyer, other big buyer are the investment funds.

In Palma, the Old Town and the trendy neighbours of Portixol, Santa Catalina, Molinar and Dalt Murada are positioned as premium areas and prices have increased by 10% over the same period last year.
In addition, other areas of central and southern Mallorca sales have increased considerably over the same period of 2014, with increases of up to 10% on luxury locations.

Yet, the north of the island remains the most popular area with an increase of 5% over the same period last year and prices ranging from € 4,000 / sqm to € 11,000 / sqm.

If you are considering buying a property in Mallorca please do not hesitate to contact Ripoll Mateu Solicitors for a further and more detailed understanding of the process. We guarantee a thorough and professional advice service.

If you are interested in selling  your property in Mallorca such as renting it there are legal things you should know and keep in mind, here is a summary of the most important:

If you have a property and want to rent it note that:

– You must obtain a tourist license if you want to carry out a resort vacation rental based on the Law of urban leasing, in the case of seasonal lease; and the Law on Tourism of the Balearic Islands, in the case of lease tourist resort. You should note, moreover, that the license may apply only homeowners who meet the following characteristics:

Detached house or semi-detached, or the like.
Maximum of 6 bedrooms and with a maximum of 12 places
Minimum 1 bathroom for every 3 seats.
Short stays, up to 2 months

– If you’re going to take out a long term rental is important to know the Urban Leases Act and its specificities on length of lease, conditions of termination of contract, price updates and income security, conditions for sale a rented property, eviction of tenants defaulting … Avoid unnecessary risks and take advice well when renting your property for long periods.

– Taxes on gains derived from rent. We advise on yields to declare and taxation; forms, terms and places of return.

If you have a property and want to sell it note that:

– Should be informed about the legislation relating to the capital gains from the sale of properties.

– Inheritance tax. Take into account the rules if you inherited and wants them as an inheritance some of your properties. The Court of Justice of the European Union considered the need to amend the Law of inheritance tax to equate to residents and non-residents in Spain. The ruling is retroactive, so those taxpayers who paid the tax, and consider that they have been discriminated against by reason of their residence, and the courts can claim a refund of the overpayment if the limitation period has not elapsed. We advise and manage successfully in terms of complaint procedures from clients who have suffered discrimination because of their place of residence.

– Municipal Appreciation: By law you are required to pay the seller, please contact us before how much it will cost.

– Sale of Companies: If you own the property on behalf of a company, you can get tax benefits by selling the shares. We advise in relation to their legal and tax bases.

– Legalization buildings. Take the opportunity to regularize any buildings. The new Government will overthrow in 2016 urban amnesty enjoyed in the Balearic Islands since 2014 with its first Land Law, which is more media available 10th Transitional Provision of the Law on Land Use and collecting procedure extraordinary need to incorporate management buildings constructed on rural land, and considered illegal for having built and / or extended without a license.

We specialize in real estate law and planning, know in depth the Territorial Planning of the island as well as plans, agreements, town planning and construction process of legalization. You still have time!
Ripoll & Mateu Solicitors Mallorca advise you on all matters relating to the sale or rental of your property. As our company is specialized in urban planning and real estate law with a multilingual team at your disposal at all times.