What to consider when purchasing a plot of land in Majorca
Mallorca is still a popular destination for building houses due to various reasons. The demand for properties is particularly high in the southwest, north, and outskirts of Palma. You benefit from a stable Real Estate market, high demand, and value enhancement of your property. Additionally, you can design your house according to your individual preferences and wishes.
How to find the plot of land?
There are different ways to find the right plot of land in Majorca:
- Search for offers from portals on the internet
- Buy directly from the owner or local providers on site
- Contact a professional advisor who can help you with the search and purchase of the plot of land and provide tips on legal aspects.
Before making the purchase, there are several things to consider. First, you should have a plot analysis done. This involves examining the suitability and legal framework for a construction project on the island. An architect carries out this analysis, taking into account the location, size, and condition of the property.
What criteria should be considered during the plot analysis?
- The location of the property: What is the traffic connection, infrastructure, neighborhood, and surroundings like?
- The shape, cut, and size of the plot of land: What is the ratio of length to width, how is the orientation, and how much area is available?
- The possibilities of construction: What are the building regulations, how is the permissible floor area ratio, and how much distance must be maintained to the neighboring properties?
- The condition of the property: What is the ground like, are there any contaminants or development costs?
What documents are needed for a plot analysis?
- A site plan with a designated building site
- Plans and sketches of the planned object, if already available
- One to two meaningful photos of the property
- Information about building regulations and the development plan
What Costs Should You Consider When Buying a plot of land?
The cost of purchasing a plot of land in Majorca depends on various factors, such as:
- The location and size of the property. Prices can vary greatly depending on the region and demand.
- The building permit and the construction project. Some plot of lands are sold with a valid building permit and a finished construction project.
- Additional costs and taxes. When buying a plot of land in Majorca, you must also consider additional costs such as notary and lawyer fees, which can account for approximately 3% of the purchase price. You also have to pay taxes such as the property transfer tax (ITP), which ranges between 8% and 11%, or the value-added tax (IVA), which is 21% for building land in case of a sale by a company.
How long does it take to obtain a building permit?
The duration of obtaining a building permit also depends on various factors:
- The type and size of the construction project. Depending on whether it is a new construction, refurbishment, or extension, the building permit may take more or less time.
- The responsibility and workload of the municipality. Each municipality has its own regulations and procedures for granting building permits. Some municipalities are faster and more efficient than others.
- The completeness and quality of the documents. To apply for a building permit, you must submit various documents, such as a building application, a site plan, a design by the architect, and proof of ownership. If these documents are faulty or incomplete, it can lead to delays.
On average, obtaining a building permit in Majorca can take between 6 months and 2 years. Therefore, it is advisable to consult an experienced architect or construction company from the beginning, who can take care of all matters and regularly inform you about the status of the process.
What should be considered when applying for a building permit?
The following points should be taken into account when applying for a building permit:
- If you buy a property without first checking whether it is buildable and whether it complies with the applicable regulations, you could end up losing a lot of money. It is therefore important to find out about the buildability and building regulations before purchasing a plot of land and, if necessary, to make a preliminary request to the municipality.
- If you have obtained a building permit, you must pay it within 60 days and submit the execution project within 6 months. Construction must begin 6 months later. Otherwise, the building permit may expire or be revoked. Also, you must make sure to comply with the requirements of the building permit and not make any changes without permission.
- If you build without a building permit or violate building regulations, you may face heavy fines or even demolition. The authorities’ controls have become stricter in recent years. Therefore, it is advisable to comply with building regulations.
Whether it’s new construction, refurbishment or project management, we accompany you from the search of a plot of land to key handover. Our proven German construction quality and consistent consideration of building physics, adapted to Majorca’s climatic conditions, form the foundation of our company.
Contact us, we are happy to advise you.