{"id":3677,"date":"2025-03-12T11:04:01","date_gmt":"2025-03-12T11:04:01","guid":{"rendered":"https:\/\/bauenmallorca.com\/?p=3677"},"modified":"2025-03-12T11:26:06","modified_gmt":"2025-03-12T11:26:06","slug":"why-invest-in-majorca","status":"publish","type":"post","link":"https:\/\/bauenmallorca.com\/en\/why-invest-in-majorca\/","title":{"rendered":"Why invest in Majorca?"},"content":{"rendered":"\t\t
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Why invest in Majorca?<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Majorca has established itself as an attractive location for investment for several reasons, \nespecially in the property sector. The island is characterised by a number of advantages. These include a stable political and legal framework that offers investors and companies a high degree of security. In addition, companies and private individuals benefit from favourable economic conditions and advantageous tax regulations, which make the location particularly attractive.<\/p>\n


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Political and legal stability<\/h2>\n

Spain is a social and democratic constitutional state with a stable political structure. The purchase of property is \nclearly regulated: While preliminary contracts can be concluded privately, a notarised contract is required for entry in \nthe property register. Spanish law also protects good faith with regard to entries in the property register. \nThere are numerous international lawyers and tax consultants on the island who can assist with the purchase process and thus \noffer additional security. <\/p>\n


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The value of property<\/h2>\n

Property prices in Majorca have been rising steadily since the 1990s, as demand for holiday properties and second homes \ncontinues to be high. International buyers in particular appreciate the island’s exclusive location, Mediterranean climate \nand high quality of life. Due to the limited supply of land and properties and Majorca’s unbroken appeal, investors are \nexperiencing a stable increase in value, which makes the location particularly lucrative. According to the CRES (Centre of Real Estate Studies), average prices have risen by 55% across the island since 2015 and by as much as 78% in Palma. This development underlines the sustained value stability and attractiveness of Majorca as an investment destination.<\/p>\n


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Tax advantages<\/h2>\n

The Balearic government has increased the wealth tax to high tax-free amounts and largely abolished inheritance and \ngift tax for direct relatives. Specifically, the tax-free amount for wealth tax has been increased to 3 million euros. \nA married couple with two children can therefore jointly utilise an allowance of 12 million euros. With regard to \ninheritance and gift tax, transfers between parents and children, grandparents and grandchildren as well as spouses will \nbe tax-free in future, regardless of the amount, provided that the persons involved are registered as tax residents in the \nBalearic Islands. These regulations also make investments in Majorca extremely attractive from a tax perspective. \nSupport programmes for sustainable and innovative projects offer financial support and tax incentives for investors who \ninvest in environmentally friendly construction methods, renewable energies or technological innovations in the real estate \nsector.<\/p>\n


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Attractive financing options<\/h2>\n


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Current interest rate situation:<\/h3>

The Euribor, the reference interest rate for mortgages in Europe, has fallen significantly in recent months. In December 2024, the average 12-month Euribor was 2.43%, which represents a significant decline compared to the previous year. Current data from February 2025 shows a further slight decline to 2.394 %. This development leads to lower lending rates and therefore offers attractive financing options for property buyers.<\/p>\n


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Recommended equity capital:<\/h3>\n

It is generally recommended to finance at least 20 % to 30 % of the purchase price and ancillary acquisition costs from your own capital. This practice improves the credit conditions and reduces the financial risk. Some financial experts even recommend providing up to 40 % equity in order to obtain even more favourable conditions.<\/p>\n


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Infrastructure and accessibility<\/h2>\n

Mallorca’s infrastructure and accessibility play a decisive role in the island’s attractiveness for investors. \nA well-developed infrastructure not only facilitates tourism, but also creates ideal conditions for businesses and \nproperty investments.<\/p>\n


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Excellent accessibility<\/h3>\n