Spanish & Mallorca Property Capital Gains Tax Changes May 2012

Some interesting news for those thinking of purchasing a property in Spain / Mallorca before the end of the year. The changes benefit both resident, none resident and Private  Companies.

It would appear that the changes have been introduced in order to encourage real estate property purchases, with the changes taking effect as from 11th May 2012. 

At the time of writing the new provisions seem to be as follows: 

The main measure is a reduction of 50% in the Capital Gains Tax on  sale proceeds for properties bought between 12^th May and 31^st  December 2012. This is regardless of the future sale  date.

The tax reduction benefits both individuals (residents and  non-residents) and legal entities, under the following  conditions:

-         The property  must have been purchased between 12^th May and 31^st  December 2012

-         It must be an urban property (residential or commercial) ie not a rural finca / country house for example.

-         The buyer and  seller should not have any connection, either corporate or  family

-         The property should not be considered a commercial development or venture.

The tax reduction will be applied in the annual Income Tax  declaration, or in the company tax of the fiscal year ,in which the capital gain  was generated.

Provided that the applicant meets all necessary requirements, the  capital gain to a non-Spanish tax  resident on sale of a Spanish property is taxed as  follows:

Sale in  2012-2013               Before:  21  %

                                                Now:      10,5  %

Sale in 2014 or  after:          Before:  19%

                                                 Now:      9,5  %

The tax on capital gain to a Spanish tax resident is as  follows:

Sale in  2012-2013               Before: until 27% (depending on Gain)

                                                Now:     until 13,5  %

Sale from 2014  on              Before: until 21%

                                                Now:    until 10,5  %

In the case of companies, the Capital Gain is taxed at  approximately 15%.

As a small reminder, remember that the tax  on the purchase of newly constructed  properties remains at 4 % until 31^st December 2012. This compares with the rate on second hand properties of between 7% and 10% dependent on the purchase price (for Mallorca)

Country Estate For Sale in Mallorca – Rural Majorca Estate For Sale

Mallorca country estate for sale

If you are looking for a stunning country house with wonderful sporting facilities then look no further. This rural Majorca estate situated in the countryside near Santa Eugenia, and thus with easy access to Palma and all amenities, boasts a flood lit tennis court, gym, swimming pool and golf driving range with green and bunker. Need to relax afterwards? No problem with your own vineyard so you will be able to sample your very own vintage and, on the days you don’t drink, why not take the helicopter for a spin,  from your own helipad of course!

The agency details read as follows:

Santa Eugenia – country property for sale with vineyard, tennis court, golf, heliport and heated swimming pool The marvellous estate with 4 houses is situated only 15 minutes by car east of Palma and the airport. The 15000 m2 property is surrounded with a wall of natural Majorcan stone. The entrance avenue is lined with palm trees. The vineyard makes out 3’800 m2 of the property. Further there is a professionally constructed tennis court with floodlight, a golf driving range with bunker and green, a heliport and a swimming pool (10 x 5 m) heatable with terrestrial heat, UV filter and countercurrent installation.
The main house consists of ground floor and first floor, connected by inside stairs. The ground floor has a floor area of 142.50 m2 plus a 40 m2 of porches which it is distributed in living room, dining room, library, kitchen, hall, bathroom, pantry and laundry. The first floor has 84m2 divided into three bedrooms, dressing room, bathroom and toilet.
There is an outbuilding for gym and locker room with an area of 76.20 m2 in addition to a garage of 78,64m2 and warehouse of 43.05 m2. Tennis Court of 382.36 m2.
The garden looks like a park with a lot of cypresses, orange, lemon and almond trees and can be irrigated automatically. Around the swimming pool there are generously constructed terraces. The estate disposes of a gas central heating, SAT-TV, and a modern alarm system. Furniture including antiques, decorations and other fittings are included in the purchase price.
Price: Euro 2950000 including furniture, antiques, decorations and other fittings.

Or the German version:

Santa Eugenia – Finca mit Weinreben, Tennis, Golf, Heliport und beheizbarem Swimming Pool Das herrliche Anwesen mit 4 Häusern liegt nur 15 Autominuten östlich von Palma und dem Flughafen. Das 15’000 m2 grosse Grundstück ist von Mauern in typisch mallorquinischem Stil umgeben, die Eingangsallee ist mit Palmen gesäumt. 3’800 m2 des Grundstückes sind mit Weinreben bepflanzt. Ferner besteht ein professionell angelegter Tennisplatz mit Flutlicht, ein Golf-Abschlagplatz mit Bunker und Green, ein Heliport und ein mit Erdwärme beheizbarer und mit UV-Filter ausgestatteter Swimming Pool mit Gegenstromanlage (10 x 5 m). Der Garten ist parkartig angelegt, mit vielen Zypressen, Orangen, Zitrus- und Mandelbäumen und wird automatisch bewässert. Rund um den Swimming Pool sind grosszügige Terrassen angelegt. Das Anwesen verfügt über eine Gaszentralheizung, SAT-TV und eine moderne Alarmanlage. Preis: Euro 2’950’000 inkl. Mobiliar, Antiquitäten, Dekorationen und sonstige Einrichtungen

For furtehr details see Central Mallorca country estate for sale

Luxury Property for sale in Mallorca – Luxury Mallorca Villas for sale

Luxury villa in Nova Santa Ponsa Port Adriano

Yesterday I read an article in a reputable local newspaper (Diario de Mallorca) suggesting that while the real estate sector remains firmly in the doldrums, with even significant price adjustments failing to activate demand, the luxury property sector ie  2€ million + is holding up pretty well with strong demand and sales being achieved.

While I am an old cynic as regular readers will know, I have to admit that in this case I suspect they are right. Talking to colleagues that operate in this top end market they do confirm that there have been a steady stream of sales in locations such as Andratx, Santa Ponsa / Port Adriano, Deia, and Pollensa (Formentor). Who is buying? The Germans lead the way along with the Russians, followed by the Swiss, Swedes and , rather falling away but not yet “gone”, the British.

But what about prices? While the rich may be getting richer (and poor poorer!!) few throw the money away! That said finding a home (excuse the pun!) for your money in this world isn’t easy so while these buyers are obviously negotiating on their purchase prices, they are equally prepared to pay for top quality property in top quality locations. It is “quality” that counts not the price tag (don’t expect to dress up an average property, smack on a “luxury price tag” and expect it to sell!!). These buyers are discerning and while paying anything up to 10€ million for a home may sound capricious, in reality, just like buying Munch’s The Scream at 120 million dollars million is quite probably a good investment, so it can be argued that top quality property in top quality locations with a very limited supply side, is also a good investment in these troubled times! In that sense I have to admit that certain defined areas of Mallorca do meet that criteria and buyers are active.

If you are interested in a bespoke Property Finding Service from experienced Chartered Surveyor then please see how I can help.

To see a small selection of luxury Mallorca properties for sale click on this link.

Property for Sale in Alcudia – Alcudia Apartments and Villas for Sale

Bay of Alcudia

The Port of Alcudia has been voted the best seaside / beach location for holidays in Spain and third best in Europe by the web portal TripAdvisor! The Port and Alcudia beach area is described as “an 8km stretch of soft white sands and gentle blue waters making up one of the longest beaches in Mallorca. You can walk through the old fishing village and historic old town near to the beach or swim or dive in the electric blue waters. The sea breezes common in the afternoon not only offer comfort for the on the beach but offer perfect conditions for wind and kite surfers”.

Having an apartment in the Port myself I may be biased but I agree that it is a great family holiday destination and a perfect place to enjoy a whole host of activities from the beach, into the sea, to the close by mountains or into the historic towns of Alcudia and Pollensa.

Alcudia beach

If you are interested in property for sale in Alcudia click on the following link – Alcudia Villas and Apartments for Sale

Apartments for Sale in Cala Dor Mallorca – Cala Dor Property for Sale

 

Cala Dor Majorca Apartment for sale

Great Cala Dor apartment for sale at discout price!

First floor south facing 2 bed / 2 bath apartment in Cala D’Or / Mallorca.It comes fully furnished including fridge freezer, dishwasher, hob, oven, extractor fan, washing mashine, dryer, air condition and all light fittings for only 182.000€ + 4% VAT. The floor plan and photos of the apartment available on request. You can move in now and enjoy the summer on Mallorca!.

 

Apartment for sale in Cala Vinyes Majorca – Cala Viñas Mallorca property

Cala Vinyes Mallorca apartment for sale

Very well priced Cala Vinyes (Viñas) apartment for sale offering spacious accommodation on a sea front complex. This is an interesting opportunity to buy a 3 bedroom, 2 bathroom property in a sought after area of South West Mallorca at a realistic price. Perfect as a rental investment or holiday home.

Agency details:

Very well priced apartment for sale in Cala Vinyes in Calvia Mallorca located in one of the best sea front complexes.
The apartment offers spacious accommodation of 112m2 and 40m2 of terraces and comprises 3 bedrooms, 2 bathrooms, fully fitted kitchen and large living room. Each bedroom has fitted wardrobes.
The front line complex has it’s own private beach access at only 50m2 from the apartment. There is a members club on the complex offering bar facilities, pool and tennis court.
Very interesting as a rental investment or holiday home!

For further photos see Cala Vinyes Mallorca apartment for sale

 

Apartments and Villas for Sale in Port of Soller and Soller area

Port of Soller property for sale Majorca

Novi Property Mallorca are please to announce that we have teamed up with a top partner in the Soller area to bring buyers of Mallorca property one of the widest selection of the best properties in Soller for sale. At the moment some properties require additional descriptions but if you need any further information just email David at info@novipropertymallorca.com.

For apartments and villas for sale in Port of Soller; beautiful Soller town houses for sale; and country houses and fincas for sale in Soller take a look at this initial selection:

Soller and port Soller property for sale

Discounted villa for sale in Nova Santa Ponsa Mallorca

Discounted villa for sale in Nova Santa Ponsa Mallorca in one of the most sought after streets. Priced at 1,375,000€ contact me for details of what it just might really sell at!! The additional discount is very large!

Details are as follows:

Bright and light  villa in fantastic location with sea views from the 1st floor.The ground floor 2 double bedroom suites including dressing rooms & bathrooms. Sunny living area with dining area. Modern bright kitchen with utility room giving direct access to the double garage. Guest cloakroom. From the living area there are folding patio doors with direct access to the large covered patio. The 1st floor accommodates the light and sunny master bedroom, a small office, bathroom & separate wash basin area and walk-in wardrobes/dressing room.There are 2 large terraces with sea views, one with direct access from the master bedroom. The basement houses the oil storage tanks & pool machinery as well as ample storage. The house and garden are both in immaculate condition having just been redecorated.

Houses in this street have sold between 1,500,000€ – 2,600,000€ in the last 18 months!

For other properties for sale in Santa Ponsa and Nova Santa Ponsa Mallorca see Santa Ponsa houses for sale

 

Villas and Houses for Sale in Port Andratx Majorca

Andratx Villas for sale

I am very excited with this new portfolio of properties for sale in Port Andratx and Andratx town that we have to offer prospective purchasers of Mallorca real estate. We are now showcasing the best range of Andratx Port properties including stunning sea view Andratx villas; Port Andratx apartments and villas and country houses in the countryside between the Port and Andratx Town.

To view this portfolio click here: Andratx properties for sale

For a full range of properties for sale throughout South West Mallorca see South West Mallorca property for sale

If you would like help finding a property in this area or throughout Mallorca contact me about my dedicated Mallorca property finding service

Houses for sale in Calvia and Capdella Mallorca – Calvia Country houses for sale

Fincas for sale in Calvia and Capdella

I am pleased to announce that we have teamed up with a partner in the Calvia and Capdella villages area to bring clients the best range of country houses / fincas for sale along with town houses and villas in the two villages.

If you are looking for villas and houses for sale in the beautiful countryside around Calvia town yet with easy access to all the amenities and activity of the coastal areas of Bendinat, Portals and Santa Ponsa etc take a look at these dedicated pages:

Property for sale in Calvia Majorca

Property for sale in Capdella Majorca

If you would like a more indepth property finding service let me know (see Property Finders in Mallorca)