Real Estate Brokerage at the Highest Level

Our tasks include the multilingual creation of your real estate exposé, the creation and placement of advertisements, accompanying you as a seller or buyer until after the purchase contract has been signed, providing you with support in financing discussions and the compilation of all documents relating to the purchase of real estate, and we are also your contact after the purchase.While in Germany, the real estate agent's client - usually the landlord - pays the agent's commission, in Mallorca it is the seller or, when renting an apartment or house, the tenant.The real estate agent in Mallorca is usually paid his commission when the purchase contract has been signed in the presence of a notary - i.e. when the buyer has paid the full purchase price. In the case of rentals, the tenant pays when the contract is signed (rental agreement).There is no fixed amount for the estate agent's commission. In the case of sales, between 3 and 6% of the sales price and in the case of rentals, one to 1.8 times the monthly rent is usual.You can find out about our conditions in a personal meeting and you will also find them in the property exposés that are sent out based on your rental inquiry.

In any case, there seem to be plans. It is becoming apparent that the Balearic government is not only planning an amnesty for illegal buildings, but also wants to fundamentally change the building law on the Balearic Islands, and in particular on the largest island, Mallorca. Under the leadership of Marga Prohens, the Prime Minister of the Balearic Islands, a remarkable change is on the horizon. The government is planning a comprehensive overhaul to bring the outdated 'Ley de Urbanismo' law up to date. Originally, only minor adjustments were planned, but now it looks as though a completely new set of rules could be introduced as early as this spring, which would mean a revolution in building law on the islands. This has been reported by various sources.A key component of this reform will be the introduction of fast-track building permits. Selected construction companies are to be given the opportunity to have reviewed projects approved by the authorities within a very short period of time. The costs for such express approval procedures will be higher than for the standard procedure, but this should be insignificant for investors. The ambitious project is a direct response to complaints from developers about lengthy approval procedures in some municipalities in Mallorca, which can take up to two years. Entire municipalities have become unattractive to potential investors as a result.In addition, the government is planning a generous legalization of illegal constructions, probably using a law from 2014 that allows the legalization of illegal constructions under certain conditions. The revised version is expected to focus on more energy-efficient buildings and the use of environmentally friendly systems.Minister President Marga Prohens sees Valencia as a role model for this ambitious project. There, the express procedure has reduced the waiting time for building permits from 22 to 2 months. But of course there are also critics of the project. Some environmental groups on Mallorca are skeptical about the reform and fear that important environmental aspects could be neglected by outsourcing the review process.

The government of the Balearic Islands is planning to legalize illegal constructions retrospectively. A new draft law is being prepared that will outline the ways and means by which this can be implemented. The law is due to come into force in spring or summer of this year.The initial situation is well known: There are numerous properties on the Balearic Islands that have been built illegally. They were either built without a permit or extensions and conversions were carried out without the appropriate authorization. Many of these properties are now protected, which means that they are no longer at risk of being demolished or fined because the authorities have not taken legal action within a certain period of time. However, grandfathering does not make them legal. Such houses cannot receive a new certificate of eligibility and may not be renovated. Permits for conversions or extensions can only be granted if the illegal part of the building has been demolished first. The sale of illegal or listed houses is also problematic, unless the owner is prepared to accept considerable price reductions. This problem is to be solved with the new law.The PP-led government of the Balearic Islands had already passed an amnesty law in 2014, but this was repealed by the subsequent left-wing government after a short time. The planned law could follow on from this, although the exact details are not yet known. It is possible that current inventory plans will have to be submitted for legalization and 'fines' could be demanded. The new law could also include additional requirements to improve energy efficiency and install plumbing to reduce water consumption, which some may not like.However, legalization offers the opportunity to obtain a new certificate of habitability (cédula de habitabilidad), apply for permits for renovation work and sell the property without losing value.As soon as the details of the planned law are known, we will provide more information here.

The Balearic Islands are more popular than almost any other destination in Europe, not only as a vacation destination but also among international property buyers. Germans in particular benefit from the extremely short flight time of just over two hours and the excellent flight connections. Unfortunately, the government on the Balearic Islands has also recognized the privileged location and wants to profit from the boom in Mallorcan real estate. At present, the land transfer tax is 11.5 percent, which already puts the Balearic island in first place in a Spanish comparison. But now the tax is set to rise again, to 12 or 13 percent from January 2023, depending on the purchase price. For a house worth 2 million euros, this can amount to a whopping 30,000 euros! If you're a last-minute buyer, you can use this money to buy a new car or a luxury kitchen instead of paying this sum to the Spanish tax authorities. It should also be borne in mind that this is already the third tax increase in the term of office of the left-wing government made up of the Socialists and the Podemos party. The latter had demanded the tax reform and have now pushed it through parliament. The property transfer tax (impuesto de transmisiones patrimoniales), or ITP for short, has now become one of the leading sources of income for the agencia tributaria de los Baleares. Unfortunately, it cannot therefore be ruled out that the increase now announced will not be the last. It is therefore a good idea not to wait any longer and to fulfill your dream of owning your own home in Mallorca today.An attractive investment: property in MallorcaIn addition to the rising property transfer tax, there is no end in sight to the increase in the value of houses and condominiums on the largest island in the Balearic Islands. On the contrary, in the first quarter of this year alone, prices rose again by almost 20 percent. This means that neither the gas crisis nor the war in Ukraine are having a negative impact. When you buy a house in Mallorca, you not only get a top property in one of the most attractive locations in the world, but also an excellent investment. This gives you the peace of mind that you are not only buying a luxury property in the Mediterranean climate, but that you will also achieve above-average returns every year. A property in Mallorca also offers a unique investment opportunity for renting out. This may be the reason why property transfer tax is so high here on the Balearic Islands. The Balearic government is well aware that it would be difficult to find a similarly attractive place for vacation and permanent residence anywhere near Germany. Leaving the cold and gray weather of Germany behind and looking for a permanent home in the Mediterranean is probably at the top of most Germans' wish list. In the long term, it is to be feared that prices will skyrocket to unattainable heights due to the constantly increasing demand and simultaneously shrinking supply.Conclusion: now is the best time to buyOur tip: Take a look at what is currently on offer and don't put off making a decision. At the moment, fincas, villas and townhouses in very attractive locations are still available at reasonable prices. However, nobody can tell you for how long. The current Spanish government is known for its spontaneous decisions and creativity when it comes to tax increases. We will be happy to answer your questions and help you with the formalities.