The legal aspects of property construction in Majorca

The construction of property in Majorca is a complex process that requires a thorough knowledge of local laws and regulations. In this article, the most important legal aspects of property construction in Majorca are explained in detail to give an overview of the situation.

Building regulations:

Building regulations are governed by various laws and ordinances. Here are some of the most important points:

• Building permits:
  Before building or refurbishing a property in Majorca, it is necessary to obtain a building permit from the local authorities. This authorisation regulates aspects such as the type of construction project, maximum building size, location, construction type and other building requirements
• Land utilisation plans:
  The land use plans (Plan General de Ordenación Urbana) determine the authorised use of land and the development of towns and municipalities in Majorca. They define what type of buildings may be erected in different locations and what construction requirements must be fulfilled
• Environmental regulations:
  Majorca is subject to environmental regulations that aim to ensure the protection of natural resources and environmental concerns. These regulations may restrict the construction of properties near the coast, in nature reserves or in areas with special landscape or ecological characteristics
• Conservation:
  There are numerous historical and cultural buildings that are protected in Majorca. Building regulations govern the handling of listed buildings and protect them from unauthorised alterations or destruction

Ownership and land register

Before a plot of land can be built on in Majorca, the ownership rights must be clearly regulated. The Land Registry (Registro de la Propiedad) plays an essential role in managing and securing property rights in Majorca. It provides public access to information about land and property, including ownership, mortgages and encumbrances. This enables interested parties to check the ownership and legal situation of properties.

Contractual aspects:

The construction of property in Majorca requires finalising contracts with construction companies, architects and other professionals. It is important that these contracts are clear and comprehensive and cover all relevant legal aspects.

Taxes and duties

There are various taxes and duties that need to be considered when building a property in Majorca. These include:

• Value Added Tax (IVA):
  The current VAT rate for new build properties depends on various factors, including the type of building, its location and other specific features of the construction project. The regular VAT rate for the construction of new residential properties is generally 10%, while the VAT rate for commercial or other non-residential properties ranges at 21%.
• Property tax (IBI):
  Property tax is levied annually on the value of the property. The amount of property tax varies depending on the location, size and valuation of the property.
• Building levies (Impuesto sobre construcciones, Instalaciones y obras – ICIO):
  Construction taxes are levied by the local authorities and include fees for building permits, building inspections and other official authorisations related to the construction project.
• Other costs:
  Other taxes and fees may include costs for the registration of construction projects, taxes on services, special taxes for non-resident owners, if applicable, and local levies.It is important to know the current tax rates and deadlines in order to avoid financial penalties.

Commercial licences and permits

Certain types of real estate projects, such as hotels or commercial properties, require additional commercial licences and permits. These licences regulate the use of the building and ensure that it complies with the applicable laws and regulations. Building owners should obtain information about the necessary licences at an early stage and apply for them on time.

Construction process and construction supervision

To ensure that the construction work complies with the approved plans and regulations, it is essential to monitor it continuously. Choosing a responsible property developer is therefore crucial from the outset to ensure that the construction process in Majorca runs without problems and complies with legal requirements.

Disputes and conflict resolution

Despite comprehensive planning and preparation, unforeseen legal disputes and conflicts can arise during the construction process, such as questions about property parcel boundaries with neighbours. In such cases, the expertise of an experienced architect is important, providing detailed information from the local community and making an essential contribution for effective conflict resolution. This enables lengthy and costly legal disputes to be avoided.

Conclusion

The legal aspects of property construction in Majorca can be complex and vary from case to case. By obtaining information about the applicable laws and regulations at an early stage and seeking professional support for the careful planning of the construction project, property owners can ensure that their construction project runs well and avoid legal problems.