Buy or Rent a Villa on the Balearic Islands 🇪🇸
The Balearic Islands have always been a popular travel destination in Europe for it’s obvious reasons 😍 but with the Golden Visa Program, affordable pricing, great rental income, and an increase in direct flights incl NYC, Miami & Atlanta, there has been a big increase in Americans buyers lately.
3-5 bedroom villas start at €1.5/2m, 6 bedroom+ start at €2/3m.
• Balearic buyers: In Ibiza & Formentera: French & Italian, in Menorca: UK, France & Italy, in Mallorca: Germans, Austrians, Swiss and USA.
• As a foreigner you can get financing which is usually with 25% down at interest rate of 1,5%-2,5% currently.
• The deposit it 10% signing and balance at closing.
• Commission is for the seller, closing costs for the buyer are about 8-12% of the purchase price which includes: Taxes => Resale: Property transfer tax 4-10% depending on the region, New construction: 10% VAT and 0.4 to 1.5% AJD (Tax on Documented Legal Acts), Notary and registration fees: 0.15% for properties is €1M, Lawyer if needed, is about 1% of the sales price.
• The Golden Visa 🇪🇺 If you buy a property over €500k, you can qualify => a 5 year Spanish residency, renewable after 5 years and you can apply for citizenship after 10 years.
• A rental license is needed to rent it out short term. Rental income tax is 19% up to €12,450, 24% €12,450-€20,200, 30% €20,200-€35,200, 37% €35,200-€60,000 and 45% for €60,000+
• Costs: Property taxes are between 0.4-1.1%. Property insurance & utilities are about €2,500-3,750 a year for a villa.
• High season is from April until October (peak June-August).
=> Our villas start at €10-€20k/w for 3-5 bedrooms and €15-30k/w for 6-10 bedrooms, with some exceptions. Prices vary per island, Menorca being lower and Ibiza the highest.
• Most villas have a 4-5 days minimum.
If you you’re planing on buying or renting a Villa on the Balearic Islands let me know 🏡 I partnered up with Viva Sotheby and happy to assist you here!
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