The Court orders the demolition of the ruins near the Es Trenc beach at the south coast of Mallorca.

Since 1995, the 13 half-finished buildings contain 68 apartments spoiling the small village Ses Covetes with its popular sandy beach of Es Trenc.

With this decision, announced by the Higher Balearic Regional Court on November 15th 2012, closes a year-long legal dispute. Several court rulings confirm that these houses were built too close to the beach. At the time, the construction was stopped after the intervention by the Environmental Protection Association GOB



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Majorca Villa new construction 400m to the beach - price reduced

The new Mediterranean villa with private pool is located just 400m from the sandy beach and the marina Sa Ràpita away. Marble floors and fine bathroom materials, oil central heating, air-conditioning warm/cold, spacious living and dining area, large kitchen, guest bathroom with shower, 3 bedrooms each with en-suite bathroom and a roof terrace with sea views.

The entire house is cellared and the underground garage has space for several cars.

The purchase price has been reduced now to € 539.00,-

If the notarial certification takes place before the 31.12.2012 the transfer tax is only 4%. From the 1.1.2013 it will be 10%.

To the exposé on our website Azur Mallorca >>



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Touristic rental of Mallorca Properties

The market

In 2011 about 10 million tourists came to Majorca, 4,2 million of them from Germany. For 2012 there are signs of a historic record with an increase of 4 percent. The hotel sector on the island offers a wide range from simple hostels to luxury hotels. This area has been expanded this year beyond the previously represented 5-star segment of the island with the opening of the Jumeirah Port Sóller Hotel & Spa. But the number of tourists who for various reasons don’t book a hotel, but prefer to rent a private holiday home, is increasing continuously in Majorca. With the exception of large families or groups, the idea of saving money is not the reason, because All-inclusive packages in the intermediate category are priced lower than a good holiday home. The motive is rather a holiday experience of a higher quality without the corset of uniform procedures in the hotel and thus more freedom in the vacation planning, as well as sufficient space and privacy. Of course do these individual travelers expect a holiday home of impeccable quality in an appealing environment with high relaxation and leisure possibilities.

The added value

The reason for the owner of a Majorca property to give his real estate in touristic rental is the expectation of a solid return, which is making this business model also interesting for investors.
But even the mix of rental and owner-occupation is economically very interesting and for the majority of the owners the preferred option. After a short initial period and if the owner-occupied periods are not moved massively in the peak tourist season, one can generate a net return of 4% of the total investment even with mixed use.
Legal requirements
Was there yet no absolute legal certainty for the touristic rental of private living space, this area is now clearly regulated by  the Tourism Law of the Balearic Islands n° 14.884, law 8/2012 of the 19.7.2012. The passages which regulate holiday stays in private homes are located in the articles 49 to 52. The law explicitly allows the rental of detached or terraced houses if they meet the regulatory minimum requirement. One of the prerequisites also implies that for both, the property and the distributor, a declaration of Responsibility was filed in the appropriate registry of the Ministry. If this is not the case, then the rental is illegal and punishable with severe penalties. For holiday apartments, the rules are more complex, but achievable with expert help.

Practical course – our service

We offer to all of our clients, which we accompany currently in their search of a Majorca property and which are interested in the touristic rental of their real estate, expert and free advice on the above subject. This of course also applies to customers who have already purchased a property through our agency.
Apart from the legal aspect, it is of course also necessary to consider whether the property is attractive for holiday rental and how the relation between the purchase price and rental income is appearing. An important factor, of course, is the costs and not least the competitive situation of the location. For logistical reasons we can only assume the complete rental service at the south coast of Majorca in the region around the beach “Es Trenc”.

To the beach video >>
In the article House buying-plus you can find a detailed service description for our clients, who purchase a property in Majorca for own and/or rental use.
Friendly greetings from Majorca
Franz Stockinger

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Purchase of real estate companies from now on with transfer tax.

Was previously a property for more than 3 years in the possession of a S.L. (Sociedad de Responsabilidad Limitada), namely a company with limited liability according to the English Ltd., so was the purchase or sale of the property exempted from the transfer tax, provided that on the buying side none of the shareholders kept more than 50% holdings of the company.    

 

The transfer of ownership of the property took place in the form, that the purchaser or purchasers did not buy theproperty, but by a so-called share deal acquired 100% shares of the owning company.

Although this method has not been applied at any time by the broad masses of property buyers, business experienced buyers or those with appropriate legal assistance could so far save a lot of money in this manner.

Thus this is now past.

By law n° 7/2012 from the 29.10.2012 the exemption from the transfer tax when buying shares of a real estate-S.L. has been abolished with immediate effect.

Exceptions are made when it does not concern a purely real estate company, but a business such as for example hotels. Here the share deal is exempt from the transfer tax even if the majority of corporate assets consists of real estate.

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