• No tax on rentals, as long as the rental price is based on the current price index.

• Illegal squatters can be officially removed with the help of the government.

• Doubling of real estate transfer tax for non-EU citizens

• For non-EU buyers who buy a property over 500,000 thousand in Spain, they will no longer receive the Golden Visa.

https://www.elimparcial.es/noticia/278568/economia/el-gobierno-limitara-la-compra-de-viviendas-a-extranjeros-y-subira-los-impuestos-a-los-pisos-turisticos.html

https://www.20minutos.es/lainformacion/economia-y-finanzas/impuesto-extra-compra-vivienda-extranjeros-total-operaciones-5672037/

From September 2024, only certified agencies will be allowed to offer properties for sale❗

This means:

• Proof of 200 hours of training API (Agentes de la Propiedad Inmobilaria)

• Passed exam (50 questions) or

• Proven 4 years of professional experience

• Insurance of 100,000 EUR per claim and 600,000 EUR per year

We are pleased that the criteria have been met and are registered under: GOIBE480323/2024.

Therefore, in the future, pay attention to the registration number of real estate providers.

Agencies that continue to offer you real estate for sale, operate a homepage or engage in online marketing without a registration number are committing a criminal offense.

Become a fiscal resident and save up to 100% profit tax when selling.

As a resident, you receive many discounts on flights, ferries and in some restaurants. Even more valuable, however, is the opportunity to take out private health insurance, which costs only about 1/4 of what it costs in Germany or in many other European countries.

There are also many other advantages of being a resident in the Balearic Islands.

We will explain to you what needs to be taken into account.

The commission is usually included in the purchase of real estate and is paid by the seller. There are completely legal ways in which buyers can save considerable amounts of money, which can be recognised as capital gains.

We will explain to you how both parties (buyer and seller) can save taxes completely legally.

The property transfer tax when purchasing is between 8% and 13%, depending on the sales value. But there are options to pay only 10%, regardless of the property value, if the house is a SL.

To ensure that the profit between purchase and sale is not too high, you can offset the following: Additional purchase costs at the time such as property tax, registration and notary costs as well as maintenance costs. Therefore, always keep your invoices!

As a rule, furniture is included when selling in Spain. When selling, create a list of furniture with prices so that you pay the reduced rate of 4% instead of 8% - 13%.

See same link to "Transfer Tax".

If you regularly rent out residential buildings, you will need a tourist license.

But you can also rent out completely legally without a license. We'll tell you what you need to pay attention to.

The Cédula certifies that the water and electricity connections for the maximum number of people living in the house are properly installed and approved by the municipality.

However, you can also buy or sell houses without the cedula but we do not recommend this.

The island government announced in 2023 that houses on Rustico properties can be legalized.

We don't yet know when this will be officially announced. One thing is certain. Land prices will rise!

You can also have online the cadastre as PDF & value estimated completely free of charge.

💡 Use on the right the map, zoom, click on it and use the "Satelilite" mode.

Use this link to analyze the trending's on Ibiza. Select the [municipality], for example: "San Josep...", the [district] like "Cala Vadella... and click on "Consultar".

Scroll down to see the history.

The Balearic Islands will lower the Wealth Tax: it raises the minimum exempt from the tax from 700,000 euros to 3 million euros.

Properties that are financed with a mortgage are now subject to a new, separate inspection that must be certified by a notary. Release can only take place after 10 days.

Inheritance tax between parents and children, grandchildren and grandparents, and between spouses, both in the event of death and in the case of inheritance during lifetime through inheritance contracts, was abolished.

A bonus of 50% was also introduced between brothers, uncles and nephews.

According to the law, when purchasing real estate, a notary must sign a statement confirming that the land has not been contaminated by waste and has not been introduced into the recycling economy.

Payments are usually made by check. Transfers are also possible, but rare. In both cases, high fees apply, often between EUR 500 and EUR 600.

Our TIP:

Open a bank account with the buyer's bank. There are usually no transfer fees.