You are currently browsing posts tagged “Property finance in Mallorca”

Market days in Mallorca

February 16, 2010 // Posted in Events in Mallorca (Tags: , , , ) |  No Comments

Market days are an important weekly event in Mallorca. They usually have a mixture of items for sale ranging from local and imported foodstuffs to clothes, handicrafts and nik-naks for tourists. The food markets of agricultural centers such as Santa Maria and Sineu are the most colourful. These two in particular are well-known but many other towns have markets that are well worth visiting.

Here is a list of the main market days in Mallorca.

Alcúdia
Martes/Tuesday y Domingo/Sunday
Algaida
Viernes/Friday
Andratx
Miércoles/Wednesday
Ariany
Jueves/Thursday
Martes/Tuesday
Binissalem
Viernes/Friday
Búger
Sábado/Saturday
Bunyola
Sábado/Saturday
Cala Ratjada
Sábado/Saturday
Calvià
Lunes/Monday
Campanet
Martes/Tuesday
Campos
Jueves/Thursday y Sábado/Saturday
Can Pastilla
Jueves/Thursday
Can Picafort
Martes/Tuesday y Viernes/Friday
Capdepera
Miércoles/Wednesday
Colònia de Sant Jordi
Miércoles/Wednesday
Consell
Domingo/Sunday
Costitx
Sábado/Saturday
Felanitx
Domingo/Sunday
Inca
Jueves/Thursday
Lloseta
Sábado/Saturday
Llubí
Martes/Tuesday
Llucmajor
Miércoles/Wednesday y Domingo/Sunday
Manacor
Lunes/Monday
Maria de la Salut
Viernes/Friday
Montuïri
Lunes/Monday
Muro
Domingo/Sunday
Palma
Sábado/Saturday
Sa Pobla
Domingo/Sunday
Port de Pollença
Miércoles/Wednesday
Pont d’Inca
Viernes/Friday
Porreres
Martes/Tuesday
Portocolom
Martes/Tuesday, Sábado/Saturday y Domingo/Sunday
S’Arenal
Jueves/Thursday
Sant Llorenç
Jueves/Thursday
Santa Eugènia
Viernes/Friday
Santa Margalida
Martes/Tuesday y Sábado/Saturday
Domingo/Sunday
Santanyí
Miércoles/Wednesday y Sábado/Saturday
Selva
Miércoles/Wednesday
Sencelles
Miércoles/Wednesday
Ses Salines
Jueves/Thursday
Miércoles/Wednesday
Sóller
Sábado/Saturday
Son Servera
Viernes/Friday
Valldemossa
Domingo/Sunday

Print details

  • Share/Bookmark

Are There the “Green Shoots” of Recovery in the Mallorca property market?

May 20, 2009 // Posted in Mallorca property finders, Mallorca property market (Tags: , , , , , , , , , , , , ) |  No Comments

This article may be of interest, posted today via property related news media.

Summary : The Mallorca property market has picked up somewhat over the last month or two, and there is much talk of the global recession having reached a turning point. Is this the start of a return to a sellers market and increasing property prices in Mallorca?

To see the full article please click here : There are Signs of Life in the Mallorca Property Market – Are They “Green Shoots” of Recovery?

  • Share/Bookmark

Latest Mallorca property market update – April 2009

April 16, 2009 // Posted in Mallorca property market, Property finance in Mallorca (Tags: , , , , , , , , , , , ) |  No Comments

This months update is a little late due to us wanting to get the new Mallorca Property Partners website launched. It is online now though. The market has certainly moved on a bit since out last report although the key predictions and underlying trends observed have not changed at all.

It is well worth reading as it puts current developments in the market into context and gives further insight into the best strategy to adopt if you are to stand the best chance of getting a good deal on the right property in the current environment.

As always your comments and questions are very welcome. You can view the report by clicking the link below.

Mallorca Property Partners market update report, April 2009

  • Share/Bookmark

What exactly is a Mallorca property bargain?

March 14, 2009 // Posted in Mallorca property market, Property finance in Mallorca (Tags: , , , , , , , ) |  No Comments

The term “bargain property” is a slightly ugly one for estate agents in Mallorca. For a long time the island has enjoyed a privileged status as one of the most desirable locations in the world, and property prices have increased solidly and continually for many years.

I agree it is a rather down-market “salesy” term and not best suited to the property market here, and the desirability of property in Mallorca has not diminished at all. However, in an environment where properties are generally negotiable when this was not previously the case, and where there are some good properties in good areas showing substantial reductions, the term bargain is reasonably apt, and it is clearly what most active buyers are looking for at present.

Having said this, there seems to be a degree of misguidedness amongst some buyers as to what represents a “Mallorca property bargain”. Many are judging opportunities solely on the reduction in asking price and are discounting properties that have not been reduced by a substantial amount.

This is a rather superficial way of judging the true value of a property and runs the risk not only of missing the best opportunities, but even worse could land the buyer with a “duff” investment I.e. one that does not appreciate significantly even when the economic environment does, eventually, start to improve.

This is for the following reasons:

  • Some properties are being put freshly onto the market at very competitive levels. So there is no reduction to show but the asking price is low from the outset in comparison with similar properties in the area.
  • As a generalisation, the owners of the better properties in the best areas will know that they have a good long-term investment and will tend to reduce the value by smaller amounts (if at all). However, it is these properties that will escalate most quickly and by the biggest percentage when property markets turn around from the current slowdown. So a bigger saving on a property in a less desirable area does not equal a better investment – it could well be the opposite.
  • Some owners choose not to reduce the asking price, but will still negotiate a substantial reduction if they receive a serious offer. Others might not. So our advice is always to focus on the properties that you find most attractive and, if you are not able to agree a price that you are comfortable represents a good investment (a much safer and more sensible terminology than “bargain”), then you must be prepared to walk away.

Overall it is important to realise that Mallorca is proving resilient in the current global recession when compared with other location in the Mediterranean and with other prime international property locations. Take a look at Dubai for example, or Eastern European countries that were previously seen as great places to invest. Mallorca has held up far better than most, if not all, the investment alternatives.

So buying any good property in Mallorca at the current time and, therefore, at a favourable price, even if it is not the kind of dramatic reduction seen in many other areas including the UK, is likely to prove to be one of the best property investments you could make.

You could readily argue that all such purchases are bargains as one thing is certain. When the turn-around does come the demand that is currently on-hold for Mallorca properties will come back very quickly and prices will start to escalate again.

All the properties we list on this website as “Mallorca property bargains” are good properties in good locations. They are selected from properties that our estate agent partners across this island highlight to us as being interesting. Some of them are new or in excellent condition and others require modernisation or refurbishment, but all have good investment potential. So these will give you an idea as to what is available and the kind of price reductions that are being made in some instances.

Please note however that we are only listing properties that have been reduced in price in the “bargains” section, and many of the other properties we have selected to list also represent exceptional deals and potentially equally good investments.

If you are interested in finding the best properties email us with your details and we will pick out a selection based on your criteria.

The following articles might also be of interest to you in this context:

  • Share/Bookmark

Capital gains tax on properties in Mallorca

March 12, 2009 // Posted in Property finance in Mallorca (Tags: , , , , , , , ) |  1 Comment

Both residents and non-residents are required to pay capital gains tax when they sell a property in Mallorca. It used to be advantageous to buy properties through a company in order to avoid this, but this is not the case now as the advantages are less and it can complicate the sale of the property. So this is something we recommend strongly against unless there are very clear reasons as to why this is the preferable structure to adopt.

The good news is that the tax rate is now lower than it used to be. Non-residents used to have to pay a higher rate of 35%, but this has now been standardised to be in line with the residents’ rate at 18%.

The tax is calculated as the difference between the acquisition value and the sale value of the property. These figures are worked out as follows:

Acquisition Value

The value is based on the stated value in the Deed of Purchase plus those taxes and disbursements which are related to the purchase (primarily VAT, Transfer Tax, Inheritance tax (if applicable), Notary’s fees, Stamp Duty and Land Registry fees).

This value is then recalculated according to a formula that is reviewed every year by the Government. This basically reduces the taxable value by increasing amounts according to the length of ownership.

Sale value

The value of the sale is calculated as the purchase payment received less any disbursements – this includes taxes related to the purchase and which have been paid by the vendor (Plusvalia tax, Estate Agent’s fees and Notary’s fees). Disbursements can include some types of post completion works carried out on the property.

So, in essence, both the Acquisition value and the Sale Value are moderated in your favour. As with all tax matters we advise that you need to seek the advice of a tax expert during the initial purchase process and, ideally, prior to making the option payment on the property, ion order to be sure that you fully understand the ins-and-outs and that you plan your management of the property in the most tax-efficient way.

Obviously if you are paying this tax in Spain you do not have to pay it again in the UK. There is a double taxation treaty between the UK and Spain which means that tax cannot be levied in one country and then again in another. The gain on the property is being made in Spain so this is the correct place to apply the tax liability.

If you would like to speak to a tax expert regarding any of the above please email us and we will put you in touch with our partners in Palma. They will be happy to give initial advice free of any charge.

  • Share/Bookmark