Apartment Mallorca

Mallorca, the most popular island in the Mediterranean, attracts millions of visitors every year - and many of them dream of buying their own apartament. Whether as a holiday home, investment or second home, buying an apartament in Mallorca offers numerous advantages, but also poses challenges.

Why buy an apartament in Mallorca?

Property in Mallorca is often a stable investment. The island remains in constant demand, which keeps prices stable or even allows them to rise. Many buyers use their apartament in Mallorca not only privately, but also for holiday rentals. With a clever strategy, an attractive return can be achieved from a Mallorca apartament, especially in the high season. But buying an apartament in Mallorca is not only a sensible investment in financial terms. An apartament in Mallorca also offers the opportunity to escape from everyday life at any time - it is a step towards a relaxed, Mediterranean lifestyle.

Apartament Mallorca: Legal aspects

Buying property in Mallorca is well structured, but requires thorough preparation and careful planning.The process usually begins with the reservation of the desired property, followed by the signing of a preliminary contract, also known as an arras contract.This preliminary contract regulates the most important conditions of the purchase and is later finalised by the notarisation of the final purchase contract.It is important to think through every step carefully and to have professional support.

The necessary documents and authorisations are an essential part of the purchase process. These include the extract from the land register, which clarifies the ownership structure and possible encumbrances, as well as the energy efficiency certificate for the property. 
If the apartament is to be used for holiday rentals, a corresponding licence is also required, which is subject to different requirements depending on the region of Mallorca.

When buying a property in Mallorca, buyers must also consider their tax obligations.In addition to the land transfer tax, which makes up a significant part of the incidental purchase costs, there are also ongoing costs such as property tax and fees for rubbish collection. These should be taken into account in the financial planning so that no unexpected expenses are overlooked.

For foreign buyers, especially those from Germany, buying an apartament in Mallorca is relatively straightforward.Nevertheless, it is advisable to consult an experienced lawyer or estate agent to overcome legal and bureaucratic challenges. An expert can ensure that all documents are correct, the purchase process runs smoothly and potential risks are avoided.

Costs for an apartament in Mallorca

Buying an apartament in Mallorca is a worthwhile, but also cost-intensive investment. It is important to know the exact prices and additional expenses in order to create a realistic budget plan. The following section takes a closer look at average prices by region, additional costs and financing options.

Average prices by region

Prices for apartaments in Mallorca vary considerably depending on location, size and facilities. Apartaments in central or exclusive areas are particularly in demand.

• Palma de Mallorca: The capital of the island offers a mixture of historical charm and modern lifestyle.Apartaments in the old town or in trendy neighbourhoods such as Santa Catalina and Portixol cost between 4,000 and 7,000 euros per square metre. 
  Flats with sea views or in top locations such as the old town can also be significantly more expensive.
• South-west: Regions such as Andratx, Santa Ponsa and Puerto Portals are among the most expensive on the island. Here, the price per square metre is often between 5,000 and 10,000 euros, especially for luxury apartaments with direct access to the sea or marina.
• North and east: These regions, including places such as Pollença, Artà and Cala Ratjada, are popular with buyers looking for peace and nature. Prices here are somewhat more moderate and range between 3,000 and 5,000 euros per square metre.
• Rural island centre: Apartaments in places like Alaró or Sineu are often more attractively priced and offer an authentic Mallorcan atmosphere. They are ideal for buyers who want a retreat away from the tourist centres.

However, the final cost also depends on individual factors such as the quality of construction, the condition of the property and availability. A detailed market comparison is therefore essential.

Additional costs: What you should also plan for

In addition to the actual purchase price, additional costs of around 10 to 15 % of the purchase price are incurred in Mallorca. The most important items include:

• Property transfer tax (Impuesto de Transmisiones Patrimoniales, ITP): This is between 8 and 13 % depending on the purchase price.
• Notary fees: The fees for notarisation usually amount to 0.5 to 1 % of the purchase price.
• Land register fees: Further costs of around 0.5% are incurred for registering the property in the land register.
• Estate agent's commission: Estate agents in Mallorca usually charge 5 to 6 % of the purchase price, plus VAT.
• Additional fees: These include costs for the translation and notarisation of documents as well as any legal advice.

It is advisable to include these additional costs in your budget planning at an early stage to avoid financial surprises.

Financing options for buyers

Many buyers finance the purchase of an apartament in Mallorca partly through loans. Spanish banks also offer attractive mortgages for foreign buyers, often with a loan-to-value ratio of up to 70% of the property value. The conditions vary, but interest rates are usually between 2 and 3%, depending on creditworthiness and term.

For buyers who prefer financing through their home bank, an additional land charge can be registered on an existing property in their home country. This option allows the financing to be processed in a familiar environment.

An important aspect of financing is hedging the exchange rate risk. As the repayment is made in euros, buyers earning in a different currency should take possible exchange rate fluctuations into account. Professional advice from a financial expert can be of great benefit here in order to find the optimum solution.