Guide how to buy properties in Mallorca and Palma de Mallorca
- 1 The city of Palma de Mallorca
- 1.1 Origin of Palma de Mallorca – The city
- 1.2 Zones and Villages in Mallorca Island
- 1.2.1 Santa Catalina
- 1.2.2 Portitxol
- 1.2.3 Bendinat
- 1.2.4 Portal Nous – Puerto Portals
- 1.2.5 Santa Ponsa
- 1.2.6 Port Andratx
- 1.2.7 Cap de Mar
- 1.2.8 Adrian Port
- 1.2.9 Cala Major
- 1.2.10 Illetas
- 1.2.11 Calviá – Sol de Mallorca & Portals Vells
- 1.2.12 Deia
- 1.2.13 Sporles
- 1.2.14 Soller
- 1.2.15 Valldemossa
- 1.2.16 Fortnalutx
- 1.2.17 Banyalfar
- 1.2.18 Pollensa and Puerto de Pollensa
- 1.2.19 Alcúdia
- 1.2.20 Arta
- 1.2.21 Canyamel
- 1.2.22 Formentor
- 1.2.23 Santanyi
- 1.2.24 Cala d’Or
- 1.3 Legal Aspects when buying a property in Mallorca Island
The city of Palma de Mallorca
Origin of Palma de Mallorca – The city
Originally, the first urban center of Palma was located on the plateau that is located at the point of two lines that are the coast and the natural channel of Sa Riera. From here you have magnificent views and control of the bay.
This location was essential to achieve good defensive conditions for the city, and a good connection with the areas of agricultural production as well as better control over the rest of the island’s territory.
Around this environment, a series of walls were built, on which the Roman and Arab populations also settled.
It was King Jaume I, who granted the consideration of the current name of the city of Mallorca.
In the 17th century, a work was carried out that was to completely change the city, which was the displacement of the Sa Riera riverbed towards the moat of the wall.
In the 19th century, as a result of important internal reform works, as well as the development of the industrialization process, society began to be transformed, creating worker nuclei outside the intramural space.
Areas with deficient urbanization organization such as El Molinar, Els Hostalets , Sa Punta, Can Capes and La Soletat are being created .
As a result of demographic pressure, and the development of projects for a better connection between the different urban areas, at the end of the 19th century, the walls were demolished, and the consequent development of the city through the expansion system.
At the beginning of the 20th century, an important action was carried out to improve the urban infrastructure with the widening of the opening of streets, the demolition of buildings, and the erection of new ones.
In the 1960s, and coinciding with the tourism promotion process, as well as the incorporation of a large number of immigrants who came to the islands to work on their progress, other peripheral neighborhoods with serious infrastructural deficiencies arose.
Until the 1980s, urgent housing needs resulted in the rapid formation of housing blocks on the periphery, and a significant expansion of chalets and second-home apartments owned by the indigenous population.
The most important works of this time were:
- The promenade will continue to grow as the main road that surrounds part of the bay of Palma; Thus the eastern and western part will be united.
- Further on, the Paseo Marítimo, in its eastern part, connects with the first phase of the Vía de Cintura and later with the Airport; A road that aims to bypass the entire city center and that starts in the Portixol and Polígono de Levante area.
- Another important road that comes into operation is the road from Palma to Inca.
- The first industrial estate in Palma was also built, Son Castelló, between the end of the 50s and the beginning of the 60s.
- Another very important modification that the city will undergo is the construction of the road in front of the Cathedral, and the intention of locating a coach park in the space reclaimed from the sea, which will be followed by a large citizen mobilization, which led in 1977 to a competition for Parque de la Mar projects. Similarly, the Son Bonet airport was left without civil activity and in 1960 the new Son Sant Joan airport was inaugurated .
- The main growing areas in the western area are: Son Vida, Son Rapinya , La Vileta , Son Espanyolet , La Bonanova, Can Barbarà and Porto Pi. And in the eastern area Son Fuster.
- The area of the old dock is also expanded considerably.
- In the already consolidated areas of the coast, in the eastern part of the municipality, such as El Molinar , buildings are going to be built on lots that until then had been used for agriculture, as well as on the previously empty lands of Can Pastilla towards the adjoining interior. with the highway and the airport.
- New urbanizations appear around the Sóller road.
- The most important road work will be the continuity of the beltway, which links the section previously built with the Palma-Santa Ponça highway . One of the most important public buildings of this period will be the construction of the UIB campus . The second runway is being built at the Son Sant Joan airport and plans for future remodeling begin.
The development of the new plan of 1998. From the year 1996 to 2006
Due to the increase in housing prices in the center and on the coast, the areas of growth are moving towards the outskirts.
The new Son Llàtzer Hospital was built in 1996 and Parc Bit was inaugurated in 2002.
In addition, a new expansion of the Palma airport begins.
On the other hand, it was decided to build a new prison, which will be located next to the Sóller road. It will be finished in 1999.
The new soccer stadium, Son Moix , which was finished and opened in 1999, with which the old Luis Sitjar soccer stadium of Mallorca was abandoned. Until years later it will not be demolished.
The port of Palma undergoes major expansions and new pontoons are built.
Urban development so far. From the year 2007 to 2015
The municipality of Palma suffers very few changes in terms of infrastructure and new buildings, due to the crisis that the country is going through. Although the population continues to increase, in 2010 it was 404,681 inhabitants.
Some of the existing buildings are being expanded but there are very few new ones, for example in the urbanization of Son Vida.
In relation to public works, the latest reform of the Palma wall and the construction of the Palacio de Congresos stand out . The main public construction will be the University Hospital of Son Espases .
New PGOU – General Plan from Palma de Mallorca
Since October 2021, Palma has had a new General Urban Planning Plan (PGOU), which includes the measures that define the development of the city over the next 20 years.
This will limit the opening of new bars and restaurants, increase the number of social housing, bury at least part of the beltway and recover 980 hectares of the current network of streets for pedestrians and bicycles, among other objectives.
Source: Last Minute
Zones and Villages in Mallorca Island
The largest and most developed urban center on the island of Mallorca.
In it we find the administrative center of both the Balearic and insular governments, and where the largest population of the island is located.
The construction typology that we find in the city is quite homogeneous since we find community buildings, although they do have a special constructive charm, and where, especially in the area of the cathedral and Santa Catalina, they reach a high acquisition value. .
The same happens as we approach the sea, where prices and property values increase, in the Portitxol area .
We can also find magnificent mansions and chalets in the Son Vida area, located at the top of the city, with magnificent views.
As for the areas, we are going to talk about different ones, starting with the same area of Palma de Mallorca.
In it we find magnificent residential areas such as Calatrava , La Lonja , and El Borne , of traditional typology, magnificently preserved and renovated.
In the city of Palma we find the Son Vida neighborhood , which is the most luxurious in the entire city, since it has magnificent views of the bay, and where Son Vida Hills is located , an exclusive and luxurious urbanization for families high purchasing power.
Santa Catalina
This neighborhood is located very close to the promenade, and has very dynamic leisure activities and gastronomy.
The constructive idiosyncrasy of the area is very diverse, since we find apartment buildings and penthouses that are intermingled with the traditional fishermen’s houses in the Es Jonquet area .
Portitxol
Located very close to the sea, we find apartment buildings with magnificent views, and which overlook the promenade which is the base of social life on the edge of the bay, with magnificent infrastructures for pedestrians and other means such as cyclists, etc., which take advantage of the unique morphology to develop all kinds of sports by the sea.
Bendinat
It is a very exclusive area, with high luxury properties, and with very exclusive organizations such as Anchorage Hill and Old Bedinat .
Portal Nous – Puerto Portals
Locations at the top of the hills of Palma, of high-luxury buildings, such as those located in Costa d’en Blanes .
Santa Ponsa
Recently developed area, includes recreational areas such as Golf Santa Ponsa , and Nova Santa Ponsa
Port Andratx
Traditionally it has been one of the most exclusive areas of Palma de Mallorca, especially in areas such as Cala Marmassent and Monport .
Cap de Mar
It is an area of recent urban development, especially in recent years, with a more modern and recent type of construction.
Adrian Port
It is also one of the most exclusive areas of the island, represented by the high-income properties of Cap Adriano .
Cala Major
It is a neighborhood with an interesting leisure option, both cultural and gastronomic. It has a beautiful promenade, around which commercial life and adjacent properties are located.
Illetas
La Cala de Illetas is widely known for the quality of its waters, and the beauty of the two beaches that make it up.
Calviá – Sol de Mallorca & Portals Vells
Sol de Mallorca is surrounded by small bays and unspoiled landscapes, making it a favorite place for second home buyers to invest.
Deia
Located in the Sierra de Tramontana region . The constructions in the area are characterized by the natural environment of their surroundings.
Very dominated by the rural environment in which modern, typical and traditional constructions are mixed.
Sporles
On the slopes of the Serra de Tramuntana , a typical place of nature and country atmosphere.
Soller
In the center of the town there are leisure and recreation areas in Gran Vía and Carrer de Sa Mar. It is made up of seven zones: Sóller, Puerto de Sóller, L`Horta , Biniaraix , Es Estiradors , Ses Argiles , and S’Alqueria des Comte .
Valldemossa
Small village of traditional houses where stately buildings such as S’Estaca and Miramar have also been established .
Fortnalutx
town in the Sierra de Tramuntana , near Puig Major . He has Sóller as a neighbor, and the village of Binibassi ,
Banyalfar
It means ” construction close to the sea “. It borders the municipalities of Estellencs , Puigpunyent , Esporles and Valdemossa . The natural charm of the villa has earned it UNESCO protection , which makes it a unique and very special place.
Pollensa and Puerto de Pollensa
Very close to Cap de Formentor and Alcúdia , Pollensa is one of the most attractive cities in Mallorca.
International investors have a high interest in the area, especially in the area of l’Alcudia.
Alcúdia
It became the capital of Mallorca. Well known by British tourists and cycling lovers.
Alcudía Beach is popularly known, and highly appreciated for the quality of its waters.
Arta
Much quieter place, south of the island. The coastal areas of Cala Ratjada and Sant Pere are among the most appreciated.
Canyamel
It has a beach and mountains, and an 18-hole golf course.
Formentor
Well-known throughout the world. Emblematic place of the Balearic Islands.
Santanyi
Located in the Southeast of Mallorca, it has retained its character to this day. Close to the sea, it is surrounded by countryside.
Cala d’Or
One of the best known tourist centers of the Balearic Islands. Widely known is also Cala Llonga and Cala Gran . It has a magnificent medieval castle, and is very close to the Mondragó Park , of natural and ecological importance.
Legal Aspects when buying a property in Mallorca Island
1.- Military authorization for rustic land properties
According to Law 8/1975, and the RD 689/1978 Regulation that develops it, for acquisitions of properties Inter vivos and mortis causa by national citizens of States that do not belong to the European Union (included in the Schengen Area), it is a requirement after obtaining written authorization from the Spanish Ministry of Defence.
For this reason, this law currently applies to nationals of countries such as the USA, UK, Canada, Mexico, Argentina, Venezuela, Colombia, India, China, the United Arab Emirates, Saudi Arabia , Turkey, etc.
This requirement does not apply to the entire Spanish territory, but rather to different areas that, due to their strategic importance, require certain control in operations to be carried out with foreign citizens. Among these protected territories are the Balearic Islands.
Thus, in the case of inheritance, the national heirs of these countries who inherit assets located in these territories must submit said authorization within 3 months from the acceptance of the inheritance. In case of not doing so, they must sell the property within a maximum period of ONE YEAR.
It also applies to Spanish companies whose share capital is made up of more than 50% by national partners of these countries.
Therefore, any national citizen of a country that does not belong to the European Union, or to the Schengen Area, must require this authorization, whether for the acquisition of a property by purchase, by donation, or by inheritance.
What type of properties are affected by this military authorization obligation?
In many territories protected by this law, the obligation to obtain a military permit extends to all kinds of properties located in said territories, be they apartments, villas, etc. , both urban and rustic.
However, for the Balearic Islands, this obligation is restricted exclusively to properties that are located on rustic land (“non-developable land”). With which, for the peace of mind of national investors from these countries, said authorization will not be required for them in the event that they acquire properties in urban areas, or in urbanizations.
Does it apply to UK citizens?
Attention: since the departure of the United Kingdom from the European Union with BREXIT, all British citizens are considered as “foreigners” for the purposes of this law, and therefore must obtain said military authorization to acquire, buy, or inherit property in protected territories.
What is needed to obtain the Military Authorization in Mallorca?
Along with the authorization request to the Ministry of Defense, the following must be attached:
- A) Identification of the Buyer:
If you are a natural person:
- Certified/apostilled photocopy of the passport, in force.
- NIE
- Criminal certificate from the country of habitual residence, translated by a sworn translator and apostilled.
- If you are a resident, a certified photocopy of your residence permit.
If the buyer is a legal person:
- Deed of incorporation, including its bylaws, and its possible modifications.
- Certification issued by the person to whom the administration or representation of the entity corresponds, regarding the participation of foreign natural or legal persons in the capital and in the corporate bodies.
- B) Scale plans of the terrain, with the distance to the coast or to the nearest military installation.
- C) Plan of the farm at a scale of no less than 1/500. If you plan to build or carry out works, the corresponding draft of the works, or the project, as well as the supporting and descriptive report of the works must be attached.
How long does it take to obtain this authorization?
The obtaining process is slow and complicated. It usually lasts from 5 to 7 months (even longer).
Therefore, in the event that you are in a position to acquire a rustic property (not developable) in these areas, it will be advisable to take this obligation into account so that it can be completed with enough time.
2.- Different constructions and house buildings in Mallorca
On the island of Mallorca we find two types of properties, properties on urban land, and properties on rustic land.
As for properties on urban land, we often find that the owners have carried out reform works, and even expansion, without the proper license.
In other cases, we find properties in which non-inhabitable areas have been set up, such as garages, basements and warehouses, to endow them with residential use, without this being allowed by the regulations.
In these cases, we find ourselves with problems when it comes to legalizing this type of works, serious problems in obtaining or renewing the occupancy license and, on occasions, even construction fines and/or demolition orders.
With regard to properties on rustic land , it must be said that local governments have become very restrictive when it comes to authorizing construction, reform, or expansion of homes on this type of land. With which, we often find ourselves with a high number of illegalities in this type of property.
3.- Legal and tax documents needed to buy a property in Mallorca
1) Title Deed of ownership or Simple Note (report from the Land Registry)
2) Last receipt of the municipal tax IBI – Real Estate Tax .
3) Last garbage tax receipt. Garbage Collection Tax .
4) Contracts in the name of the owner of water, electricity, gas, telephone…
5) Certificate of Habitation
There is a lot of types:
– First Occupancy or Certificate of Habitabitation
Which is the one obtained directly from the builder at the end of the construction works of new houses , or the one obtained after the completion of the rehabilitation works of existing houses.
This certificate is valid for about 10 years (depends on the area), and is granted considering the maximum capacity of occupants that applies to it.
– Renewed Certificate of Habitabitation or Second Occupation.
It is the one that is obtained in second or later transmissions of the house.
– Lack of Certificate of Certificate of habitation
It is obtained for houses or old constructions that have never had a Certificate of Habitability. In order to obtain them, it is necessary to submit to the City Council a study/project drawn up by an architect, in which the construction circumstances, regulations and habitability of the dwelling are specified.
6) Certificate of Energy Efficiency (CEE) :
7 ) Certificate of non-existence of urban violations
This is a verification by the City Council that there are no violations, fines, or demolition orders on the property, due to possible reform, construction or expansion works without permission .
8) In properties with rustic Land and Villas in urban areas, it will be advisable to request what is known as the “Urban Planning Certificate” or “Urban Planning Report”, confirming the type of land, the regulations and the limitations/conditions of construction in the property.
9) ITE – Technical Inspection of Buildings : For buildings over 50 years old, it is necessary to pass the ITE to confirm their construction status and, where appropriate, undertake the reforms/repairs necessary to preserve their good condition and conservation .
10) Certificate of debts of the Community of owners: Certificate issued by the President of the Community of owners confirming the debt status of the property with respect to the payment of the common maintenance expenses of the building.
11) Minutes of the Assembly of the Community of owners : It will also be advisable to obtain the Minutes (of at least 3 previous years), to find out the correct progress of the Community and its agreements.
4.-Requirements and process to obtain the Tourist rent license in Mallorca
As of FEBRUARY 11, 2022, NO NEW VACATION RENTAL LICENSES ARE GRANTED IN THE CITY OF MALLORCA, IBIZA, MENORCA AND FORMENTERA.
This limitation extends until the year 2026.
Those properties that, as of said date, already hold the vacation rental license may continue to use it by the new owners in the event of sale.
In the event that the license is lost or ceases to be valid, it cannot be reactivated.
Owners can also lose their licenses if they don’t follow the law. For example, licenses issued for rental of residential buildings and for 60 days must be renewed every five years. In that case, you have to pay the quotas for the places again. Those who had applied for their rental license under the old regulations (before 2017) will have to obtain the license again on a regular basis.
For rental licenses issued prior to 2017 , a three-year non-occupancy period applies. If it is observed that the property has not been rented to tourists during that period, the license expires.
Licenses obtained between 2005-2012 : Must be renewed every 6 years. Otherwise they will expire automatically.
Licenses obtained from 2012 : These licenses do not have an expiration period, so they do not need to be renewed.
What is meant by “holiday rental” according to Balearic law?
According to the previous regulations , “vacation rental” is one in which a home is rented for less than 30 days .
However, current regulations no longer speak of term, but of “intention “. In other words, the rental that is carried out using the means and the typical formalities of this rental will be “vacational”. And it will be regular rent that is carried out and formalized according to the rules and procedure of the LRAU (Urban Leasing Law).