Do you want to sell or rent your property in the Balearic Islands?

Real estate investments can be an attractive option in the Balearic Islands.

So when it’s time to see a return on your efforts, you need to know you’re taking the best possible approach.

Please note, this information is not intended as legal advice. To find a local lawyer, please see our registry.

Letting your property in the Balearic Islands

There are many reasons you might decide to keep your property rather than sell. Letting it on a long- or short-term basis can be a way to cover your costs and see a return on your investment.

There are sometimes other advantages to keeping your property, too, such as tax benefits or different visa options. Owning a rental property can also give you flexibility for holidays and future plans. Whatever you decide, it’s important to carefully weigh up the pros and cons and seek professional advice where necessary.

Tourism in the Balearic Islands

Tourism is a massive industry in the Balearic Islands. As Rosana Morillo, the director general of tourism in the Balearic Islands told National Geographic, tourism directly accounts for 25% of the islands’ income. In 2019, 11.8 million visitors reportedly headed to Mallorca alone, showing the scale of the market.

While it may take a while for travel to pick up to normal levels post pandemic, investors can see how important tourism is for the region.

Thinking about the practical details

As far as holiday lets go, they are increasingly popular with international tourists visiting Spain. However, rules and regulations for rentals vary depending on the region.

For instance, if you decide to let your property to tourists in the Balearic Islands, you’ll need to apply for an ETV license. This is a mandatory permit, granted on a case-by-case basis to properties that fulfil specific criteria. If you haven’t yet bought a property and are set on the idea of holiday lets, you could opt to buy a home that comes ready with an ETV license. Different rules apply for other types of lets.

It’s also important to consider your property from the viewpoint of a prospective renter. Is it located close to amenities? Does it come with a view? Is it easy to get to from the airport? If the answer to these questions is no, that doesn’t mean your plan is a non-starter; you’ll need to think about your target market and consider your options.

Meanwhile, property management doesn’t have to be an issue, even if you’re abroad. Many reputable lettings agencies and estate agents offer property management services, from mail handing to 24/7 assistance.

Selling your Balearic Property

The COVID-19 pandemic shook industries across the world. Despite the disruption and reduced sales, The Financial Times reported that, according to the Ministry of Development, the average price for a Mallorcan home sold in 2020 was €303,415, up 14 per cent from 2019.

Pre-pandemic, Balearic Properties estimated a 6% rise in the luxury property market in Mallorca until 2022. Reports also suggest that recent demand in the luxury property sector has been more stable than for other property types. Even so, it’s important to research current market trends when deciding to sell and to make sure it’s the right option for you.

Practicalities of selling a property in the Balearic Islands

By working with a reputable and local estate agent, you can take advantage of insider knowledge, marketing channels, and impressive track records. It’s advisable to work with a local property lawyer, too, who can help you understand the process and avoid common pitfalls, such as problems with costs or fine print.

Getting the right team of experts in place means a smoother process all round. For example, they can help you ensure you have the appropriate documents (such as energy certificates and the title deed, amongst others), and work out which taxes and fees need to be paid and when.

It’s best to work with experienced professionals who speak your language as well as the local language(s) to avoid misunderstandings.

Finding a lawyer in the Balearic Islands

If you need a real estate law expert, we’re here to help. We’ve helped over 1000 clients find a property lawyer to protect their interests. The right Spanish property lawyer can help prevent problems, handle issues, and provide key advice.

To get started, simply search for a property lawyer in Mallorca, Menorca and Ibiza or another area of Spain.

Alternatively, have a look at our blog articles to see other resources relating to real estate investments, property insights, and more.