Miles of white beaches, diverse flora and fauna, imposing mountain landscapes, traditional villages, lively cities and, of course, the Mediterranean lifestyle with numerous hours of sunshine and the mild climate - all this makes Mallorca one of the most popular destinations in the world. Once in love with the island, you actually do not want to leave. Good thing that with a second home Mallorca you do not have to, at least for a certain period of the year. A second home on the Balearic island brings you some notable advantages and the selection of high-quality properties that bring you pure luxury and almost limitless amenities is particularly versatile.
If you decide to buy a second home in Mallorca, NEPTUNUS INTERNATIONAL is the right partner for you. In addition to helping you find a suitable property, we will also support you with all the bureaucratic steps such as the second home in Mallorca and taxes. The following article will give you an initial overview of everything that is important for a second home in Mallorca.
What are the advantages of a second home Mallorca?
In addition to the year-round mild climate, the largest Balearic island is characterized by its diverse and extensive landscape. With a residence on Mallorca, you can decide for yourself what time of year you want to enjoy nature on the island. Many residents choose to escape the cold winter in Germany and spend time in their vacation home. Thanks to the short flight times and good flight connections, you can arrive in just two hours. A residence in Mallorca also offers you maximum privacy.
Thanks to the excellent infrastructure, including schools and nurseries, you can enjoy every conceivable amenity in Mallorca. Luxury properties and sophisticated estates such as villas can be found in Puerto de Andratx and Bendinat, among others.
You are also guaranteed to find what you are looking for in Santa Ponsa, Camp de Mar and Son Vida and can enjoy your life on Mallorca to the full.
Fincas that are a little out of the way but have extensive plots of land are also ideal. If, on the other hand, you don't want to worry about anything else, apartments in managed complexes, which are also fully secured, are a great alternative. You don't have to worry about the garden or pool, which you share. You often also have access to a gym that is part of the complex.
With a residence in Mallorca, you also have the choice of whether you want to use it exclusively yourself or rent it out while you are away.
What about taxes for a second home in Mallorca?
An important point that is often overlooked: Within the EU, it is not possible to register a secondary residence in the legal sense. Each property is considered an independent residence in the respective country. Even if you only use the property temporarily, you are considered to have limited tax liability and are obliged to submit an annual income tax return - regardless of whether you earn any income or not.
Spanish tax law is based on the duration of your stay. If you spend more than 183 days a year on the island, Mallorca is considered your habitual residence for tax purposes. Even if you spend less than 183 days a year there, as a property owner you must pay the so-called Impuesto sobre la Renta de no Residentes (income tax for non-residents). You are also obliged to keep an electronic mailbox, for which a digital certificate is required.
To ensure that your second home in Mallorca is not classified as your main residence for tax purposes, you should note the following:
- Spend no more than 183 days a year on the island.
- Prove that it is a secondary residence if a permanent residence is assumed.
- Avoid having the "center of your life interests" in Mallorca, for example if your children go to school there.
Where are the costs for a second home in Mallorca?
Investing in a property in Mallorca is worthwhile if the interest rate is low. A second home Mallorca can bring you tax advantages and is usually an attractive retirement plan.
In terms of costs, you should note that Spanish property transfer tax is payable in addition to the purchase price. The land transfer tax is progressive and varies between 8% and 13% depending on the purchase price. For the entry in the Spanish land register, you will have to pay a further approx. 1% of the purchase price. There are also notary fees (between 0.05 % and 1 %) and legal fees. For a purchase price of €500,000 or more, it may be worthwhile engaging a law firm that charges by the hour, such as Porta & Associates.
The running costs should also not be underestimated. These include the annual real estate tax (IBI), garbage fees and, if applicable, community costs if you purchase a property in a residential complex.
Do I have to register a secondary residence Mallorca?
If you spend more than three months a year in Mallorca, you must register in the EU register of foreigners. However, registration does not automatically mean that you are considered a resident for tax purposes or that you have your usual place of residence there. Nevertheless, registration offers practical advantages, such as freedom from co-payments for medication or the right to vote in local elections. To ensure that everything is legally secure, you should seek legal advice.
Do you want to move into a second home in Mallorca and are looking for the right property? We have a high-quality and luxurious portfolio ready for you and will be happy to look for a property that fully meets your expectations. Take a look at our offers online or contact us directly. We are sure to already have the keys to your second home in Mallorca in our hands.
