Purchase a property in Deià | Engel & Völkers (2023)

FAQs

Can Americans own property in Mallorca? ›

Can Americans buy property in Spain? Yes, they can. There are no restrictions on property investments for Americans.

The most direct impact of inflation in Europe was on the market for new buildings. Increased costs of materials, transportation, and so on have increased the cost of new houses for sale in Mallorca. It's now higher than it was in 2020-2021. The increase in prices for new buildings at the end of 2022 was 11%.

15% fall in Balearics sale of homes forecast for 2023

The average price, meanwhile, will remain almost identical: from an average 2,583 euros per square metre in 2022 to 2,582 in 2023. The forecasts take into consideration the effects that inflation and the consequent rise in construction costs will have on the market.

What do I need to buy a property in Mallorca? To be able to buy and own a property in Spain you need a NIE-number (Número de Identidad de Extranjero) which is similar to a Spanish social security number but for foreign citizens. You can get the number either at the Spanish embassy in your country or in Spain.

How Long Can I Stay in Spain if I Own a Property? Even if you own a property in Spain, you're still entitled to stay for only 90 days in a 180-day period without applying for a residence permit or a visa.

Living in Mallorca, on a day to day basis is a laid back and happy affair. A slow, easy going retirement lifestyle that is spent mostly outdoors and enjoyed in the sunny plazas and family restaurants of the small villages. The island is also well connected, both within and to the outside world.

Where do expats live in Mallorca? Expats living in Mallorca typically congregate around a few main destinations. The most popular coastal areas include Puerta Portals, Santa Ponsa, Portals Nous, and Bendinat.

The Spanish real estate outlook 2023

Last year, we predicted a strong market with price increases between 3 and 6 per cent. We were spot on! The Spanish real estate market should be more stable in 2023 and we could even see some price decreases.

Is it a good time to buy property in Spain 2022? Yes, for sure, as you can see, prices are rising since 2014 but are far from the top of 2008. Returns are healthy and not excessive while financing remain low.

Is now the right time to buy a house in Spain? ›

Summary real estate analysis Spain Q3 2022

With that said, year-on-year growth is an important figure to keep an eye on – after all, you usually buy a house to own for more than a year. So if you are thinking of buying a house in Spain, now is a good time to get in.

Is it Safe to Buy Property in Spain? Yes, “as safe as houses” as they say. Here's why: the latest housing pricing data from Spain's National Statistics Institute (the Instituto Nacional de Estadistica (INE)) shows a steady rise in property prices. Nothing is sharp and steep, just slow, gradual growth.

Can you get Spanish residency by buying a property? Yes, if you are a non-EU citizen, you can obtain a residence permit in Spain valid for 3 years as long as the property you purchase is valued at over €500,000.

The tax rate applied is between 19% and 24%. Taxation on non-residents for a property sale: Non-residents who decide to sell their property in Spain are required to pay taxes at the rate of 19%.

Yes, in order to buy or rent you must have a Spanish bank account or in Spain.

For the non-lucrative visa, you must prove that you have 400% of the IPREM received annually into your bank account. For 2023, the IPREM is €600 per month. This means that an individual would need a regular guaranteed monthly income of €2,400 or €28,800 yearly.

Entry, Exit and Visa Requirements

Spain is a party to the Schengen Agreement. This means that U.S. citizens may enter Spain for up to 90 days for tourism or business without a visa. Your passport should be valid for at least three months beyond the period of stay.

How long can I stay in Spain without becoming a resident? You can stay in Spain for a maximum of 183 days per year (6 months) in order to not become a resident. If you spend an extra day (184 days and onwards), you will be regarded as a resident, hence paying resident taxes in the country.

This includes new properties that were bought by banks or taken on by them in case of default on mortgage payments, for example. Expect to pay between 8% and 11.5% in taxes on a property purchase in Spain.

Purchasing a property in Spain involves the payment of different taxes, ranging between 8% and 11.5%, whether the property is newly built, generally sold by banks or construction companies, or the property has already been owned by another person, a resale.

Are Spanish property prices dropping? ›

Demand far outstripped supply but rather than predicting a market collapse, the experts are confident that Spain will be one of the countries where house prices will fall the most in 2023 and 2024.

While you work—If your work is covered by both the U.S. and Spanish Social Security systems, you (and your employer, if you are employed) would normally have to pay Social Security taxes to both countries for the same work.

If you're a non-EU/EEA citizen who wishes to retire in Spain, you'll need to prove you have enough income to support yourself without income from employment. As of 2021, the minimum figure for this is currently set at €2,259 per month or just over €27,000 per calendar year.

The island has two official languages, Castilian (Spanish) and Catalan, while locals prefer to speak their Mallorquin dialect. However, the island's staff, including maids, speak several foreign languages. English, German and French are particularly common.

For long decades, Mallorca is so popular among Germans and Brits because of its long and sandy beaches, awesome Mediterranean climate, and ideal costs for both living and holiday.

Monthly temperatures

The weather in Mallorca remains warm throughout the year with average night time lows dropping to around 10ºC in December and January. The summer months can see temperatures reach 40ºC, although the averages are around 30ºC.

The absolute minimum that I would recommend a single person should budget to live in Mallorca per month is 800€ without rent. I would recommend budgeting extra for emergencies, so better to budget around 1000€ a month.

The Spanish real estate market is expected to continue to grow in 2023, with prices expected to rise in many areas. This is due to a combination of factors, including a growing economy, relatively low-interest rates (compared to other countries), and an increase in demand for properties.

What is the interest rate in Spain? As of January 2023, the average mortgage has an interest rate of 2.55%. The lowest rate ever was 2.44%, very close to the current level! The average mortgage duration is 25 years 35% have variable interest rates 65% have fixed interest rates.

Is it better to buy property in Spain or Portugal? ›

Is property cheaper in Spain or Portugal? Property in Portugal is far cheaper than in Spain, and with attractive rental yields in Lisbon and the Algarve, you can understand why Portugal is such a popular choice for investors.

FAQs when buying a house in spain as an american.

There are no restrictions on buying property in Spain, whether it's commercial, residential or land. In fact, Spain encourages investment by foreigners, both resident and non-resident.

The owner will have to provide all the documentation of the house, that is to say, the title deed, the registry document, the last utility bills, the energy efficiency document, the last rates bill and in the case the property is on rustic land the DAFO, as well as their NIE and passport.

Buying a house or commercial property in Spain can be an excellent investment whether you plan to rent it out or live there by yourself. Under the statistics represented by the Central Bank of Spain in March 2022, the return expected on the residential real estate market is 10%.

In the long-term, the Spain Interest Rate is projected to trend around 3.50 percent in 2023 and 2.75 percent in 2024, according to our econometric models. Spain is a member of the European Union which has adopted the euro. Spain's benchmark interest rate is set by the European Central Bank.

New property purchase costs: 14.2%

(These include: VAT/IVA at 10%, stamp duty at 1.2%, legal fees 1%, notary and registry fees 1%, plus 0.7% for various documents required such as power of attorney, NIE application and certificates.)

Yes, expats in Spain need to pay taxes. The most basic tax that expats must pay in Spain is the income tax. The income tax is calculated upon the expat's worldwide income. However, if you are a Spanish non-resident, the income tax is calculated just upon the income generated in Spain.

Spanish property tax

If you own a property in Spain and are living in it on 1 January in any given year, you must pay a local property tax or Impuesto sobre Bienes Inmuebles (IBI). The amount is the rental value multiplied by a tax rate set by the local authorities. This applies to non-residents and residents.

After 5 years of living in Spain, the advantages arrive. If you have done so legally and continuously, you can apply for one of the most advantageous permits in the country: long-term residency (previously called permanent residency).

Residency in Mallorca for non-EU nationals

This means if you are a non-EU citizen you'll need to fulfil Spanish requirements for residency. The most popular routes for non-EU citizens are a Non-Lucrative visa and Golden Visa.

Is Majorca a good place to buy property? ›

There are very few places in the Mediterranean that offer such a diverse range of property than in Mallorca. The island is loved for its mountains and sea, but it's the strength of the island's second home market that confirms the move of thousands of international buyers.

Yes, you can get residency in Spain after buying a house, and that is thanks to the golden visa scheme.

On average, Spanish pensioners are taxed at source at a rate of 7.7%, although the percentage varies depending on your pension.

Entry, Exit and Visa Requirements

Spain is a party to the Schengen Agreement. This means that U.S. citizens may enter Spain for up to 90 days for tourism or business without a visa. Your passport should be valid for at least three months beyond the period of stay.