Foreigners buy more houses than Locals
The price per square metre on the island continues to rise and the real estate market increased last year like never before. It is not the locals who are leading the market, but the foreigners, of whom the Germans hold the highest share of property purchases at 59 %. This shows that Germans in particular are happy to invest their considerable assets in real estate on the island in uncertain times of money market policy. For some time now, there has been lively discussion about this fact and whether the sale of real estate to foreigners should be restricted. Foreign buyers in particular bring money to the island with one-time and permanent taxes and investments, without which the state would have clear problems in coping with the social tasks.
In the second half of 2021, 4,441 properties were sold, setting a new record since 2007. Since then, these figures have only been recorded in the Spanish Chamber of Notaries. In the whole of 2021, properties worth 6 billion euros were sold in the Balearic Islands. This brought the Balearic Islands tax revenues (land transfer and stamp duties) of 836 million euros, 60% of which came from sales contracts involving foreigners. This does not yet include the tax that an EU national has to pay on the profit generated by the sale of a property on the island. In addition, construction companies and craftsmen also benefit from this development. A regulation on the purchase of real estate for foreigners would also hit this industry enormously and probably create a mass of unemployed. With a ban or restriction on the sale of property to foreigners, many of the pillars on whose income the Balearic government depends would falter and cause great hardship to the government coffers.
Currently, there is nothing standing in the way of buying property in Mallorca. Do you need help finding the right property on the island? Then we are the competent contact for you. With our special listing department, we have the possibility to offer you almost any property.