Properties | Marcel Remus Real Estate

Frequently Asked Questions

Have you any doubt let us clearify.

What are the most sought-after areas in Mallorca?

In general, the southwest of Mallorca is a particularly sought-after area. Top locations include Son Vida, Bendinat and Puerto de Andratx. But other places have their charm: A finca in the countryside, the area around Santa Maria is also very interesting because of its proximity to Palma and the rural flair. Basically, real estate near the sea, or with sea views are very popular with the buyers.

How much commission is due when renting a property and who pays the commission?

When renting a property, a commission of 2 months’ rent plus 21% VAT is usually due. This is paid by the renter.

How much commission is due when buying a property and who pays the commission?

Usually the commission for a property sale ranges between 5 and 6%. Here in Spain, the seller pays the commission.

What are the benefits of hiring a broker instead of taking care of selling my property?

First of all, we have a large portfolio of clients to whom we can offer your property. In addition, we check the customers carefully, you do not take the risk that "real estate tourists" look at your property. We make sure that they are serious buyers. We present your object in a professional way, take professional photos, etc. In addition, we are available to help you with the purchase, which is particularly helpful if you are not familiar with the real estate sector in Spain and may not speak the language.

Which rental or purchase price can I earn for my property and how is it determined?

Square meter prices are often misleading. In Mallorca, it makes the most sense to compare with other properties. Based on the location, size, equipment, condition, we can determine a market price.

What costs do I have to expect when buying a property?

The Property Transfer Tax (Impuesto sobre transmissions patriomoniales) is payable on purchase. Basis of assessment here is the selling price of the property. But the tax office can check the price and subsequently determine a higher value. The Property Transfer Tax in the Balearic Islands is staggered as follows: up to 400,000 euros: 8% | up to 600,000 euros: 9% | up to 700,000 euros: 10% | over 1.000,001 Euro: 11%. In the case of new buildings, the IVA/VAT (Impuesto sobre el valor añadido) is charged instead of the Property Transfer Tax: the tax rate for apartments and houses is 10%. The stamp duty (AJD - Impuesto sobre Actos Jurídicos Documentados) in the Balearic Islands is currently 1% and must be paid by the buyer. There are also notary fees (about 0.2 to 0.3%) and the registration fee (about 0.2%) and possibly legal fees (about 1%).

What costs do I have to expect when selling a property?

The increment value tax (Plusvalía) is based on the appreciation of a property. It is calculated according to the cadastral value. The tax is paid by law by the seller, but it is quite common for the buyer to pay the tax. Capital gains tax: The profit on the sale of a property is taxed at 19% (non-resident tax). If the seller is not resident in Spain, the buyer retains 3% of the purchase price for security and has to pay this amount to the tax office within one month.

What is the annual cost of a property?

Tax on immovable real estate assets (IBI): This annual tax is calculated on the basis of the cadastral value. It is different in each community. | Income tax: Those who spend more than 183 days in Spain will become resident. The resident is subject to the Spanish tax liability, which means that he has to declare his income tax in Spain (impuesto sobre la renta de personas físicas, IRPF). But also non-residents are obliged to an annual tax declaration. Even if you do not rent your property and use it yourself, the tax office assumes a fictitious "profit" through the property, which must be taxed. | Property tax: In the Balearic Islands, both residents and non-residents are taxed on the wealth that is on Spanish soil, in other words savings, stocks ... even real estate. There are tax free amounts (700,000 euros) and differences in the level of tax rates for residents and non-residents. | In addition, other ongoing costs such as garbage fees are added. If your property is part of a community, then there are expenses for administration, pool maintenance, conservation, etc.

What is an option contract?

If you have found the right property, it is common in Mallorca to conclude a reservation or option contract. The period between reservation and the actual purchase can be used e.g. to apply for a mortgage or to legally inspect the property. The option contract is valid without a notarial deed. By making a reservation, the seller reserves the property for a fixed period of time to the potential buyer for a reservation fee (approximately 10% of the purchase price). The fee is credited to the purchase price. If the purchase is not made by the buyer, the owner retains this fee. In the opposite case, the seller also compensates the buyer with the same amount.

What documents do I have to present when buying a property?

You need at the notary appointment: The first step is to apply for a Spanish tax code (Número de Identificación de Extranjero). It is required for all legal transactions (purchase of real estate, registration for water, electricity, etc.). | passport or identity card | The sales document (Escritura) of the property | Payment receipt of property tax (IBI) | For flats: proof of payment of the community expenses issued by the President | Deed | The proof that the last bills for electricity, gas, water, etc. have been paid | Energy certificate

Can I buy a property without a certificate of habitability?

The certificate of habitability (Cedula de Habitabilidad) is not necessarily to be presented to the notary for the purchase of a property. Nevertheless, it is highly recommended to have this document. It is valid for 10 years and can be re-applied afterwards. Without the certificate one cannot get contracts for water, electricity, etc.

How long does the buying process take from the decision to the purchase / notary appointment?

Very different. If you are in possession of all documents and have a NIE number, the sale may be completed within a few weeks. If you have concluded an option contract and this provides for a long term, the time of the transfer may take several months.

What should I know if I want to apply for a mortgage in Spain?

The conditions are usually a bit different than in other countries. Most of the mortgages that are granted in Spain are linked to Euribor and therefore the interest rate is variable. But in recent years, banks have also offered the possibility of taking out a mortgage with a fixed interest rate.

How much equity do I need?

There are differences here for Spaniards and foreigners. As a rule, locals get about 80% of the property financed, with foreigners it is only 70%. The mortgage amount and the term are of course crucial. In general, mortgages are granted in such a way that the amount is paid off for a maximum of 70 years.

Does Marcel Remus also offer rental properties?

Yes, we also offer high quality rental properties for long-term and short-term rentals.

What is the usual rental period?

The rental period for the long-term rental is one year. Thereafter, the contract is extended automatically, each time for 1 year up to 3 years, should it not be terminated by the renter. There are some differences in Spanish tenancy law, so you should inform yourself before signing a contract.

What is the difference between long-term and short-term rental?

Long-term rental is valid from the rental period of one year. Short-term rental is the weekly rental of a property, usually to tourists. There is also the seasonal rental, this is also regulated by law. The landlord leaves the tenant for a fixed period of time the property. Here, the duration of the lease is freely agreed by both parties without a minimum term. This type of contract differs from the tourist rental and is e.g. completed due to a temporary move.

What about vacation rental, what do you need to apply for?

Long term rental is generally allowed. The situation is different with tourist rental: If you want to rent your house or apartment to tourists, you must apply for a license from the Ministry of Tourism. The condition is that the property is located in a zone in which the holiday rental is allowed. In the Governmental Zone Plan (PIAT), a distinction is made between areas that are saturated with tourists and those that are not yet saturated. Basically, excepted from the tourist rental are properties that are located in tourist areas, such as Palma or the Playa de Palma. There are some requirements that must be met for a holiday rental: The property have been privately owned for at least five years, there must be a certificate of eligibility and in a community of owners the other residents must agree. The licenses are given per guest bed, a bed in an apartment is cheaper than that in a villa.

Who takes care of my property in my absence?

We have very good contacts to reliable property managers who take care of your property.

Do I need a building permit to renovate a property?

Yes, you need it. For smaller conversions, measures that do not affect structural elements, a small building permit (Obra Menor) is sufficient. For more extensive works that concern the structure of a property, you need a large building permit (Obra mayor).

When am I considered resident in Spain?

If you stay in Spain for more than 183 days a year, you are considered a resident.

Do I have to present a tax declaration as a Non Resident if I own a property in Spain?

Yes, every owner of a property is obliged to submit a tax declaration on an annual basis, even if he does not rent his property and thus has no income.

What is the Spanish state doing against the squatters (Okupas)?

Basically, occupation of a property is punishable. However, it has taken a long time to sue the squatters out of your own property. This procedure is now being accelerated by a new law. With the change in civil procedure law, it will be easier to evict real estate, at the latest within 20 days. The process will be accelerated as soon as the rights to the property have been clarified. The Okupas are asked to prove their entitlement to the property (for example, with a lease contract). If they do not provide these documents, the court orders the immediate eviction. No appeal is possible against this decision. For example, eviction, which used to take months and years, can take less than 20 days. This does not affect legally renting residents who, for example, can not pay their rent.

I would like to present my company or my product in the magazine MR Lifestyle by Marcel Remus, what can I do?

Once a year, around Easter time, our magazine with real estate and exciting topics is published. The magazine is located at all major hotels, restaurants, ... in Mallorca. We also send it to our customers and it will be presented digitally on our website. If you are interested in an advertisement for your company or product, please contact us by e-mail (info@marcelremus.com). You can book a whole page or a double page: 1 page: 2.950 € + VAT Double page: 4,500 € + VAT Proportions: A4 (297x210 mm + 3mm cut) Resolution: 300 dpi Format: JPG, PDF

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Frequently Asked Questions

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