Cala Millor and its surroundings embody the charm of Mallorca. This is due not only to the 1.8 km long sandy beach, which has been awarded the “Blue Flag”.
Rugged nature, historic areas, gastronomy and urban flair from the nearby town of Manacor combine to create an appealing mix. In addition, Cala Millor offers a wide range of property options.
Where to find suitable property listings
Property listings in Cala Millor can be found, for example, in the classic way on real estate portals.
Certain real estate companies or agents also specialise in the Mallorcan property market and are therefore a good point of contact.
Even online classifieds feature property listings. In general, it is worth turning to experienced agents or real estate agencies.
Especially in Mallorca, many German representatives are also available. With a reputable real estate company, the contract terms as well as the condition of the properties are reliable.
This also helps avoid unpleasant surprises, such as possible financial burdens attached to the property.
Anyone wanting to buy a flat, an apartment or a finca should of course take the time to thoroughly inspect and check the property.
This applies regardless of who is offering the property for sale.
Real estate agents in Cala Millor – who pays the agent’s fees?
The agent’s fees or any commissions are usually paid by the seller. However, there is freedom of contract, meaning that agent’s fees can also be charged to the buyer.
In this case, it helps to carefully review the contract terms beforehand. The amount of an agent’s commission is usually around five to six percent of the sale price.
What should you generally look out for when buying a property?
Anyone wishing to buy property in Cala Millor starts with the usual considerations. These primarily concern location, in this particular case, for example, whether the property is directly on the beach, close to it, or further inland.
There are also considerations regarding whether the property will be used exclusively for personal purposes or possibly rented out as a holiday home. These two factors usually already determine the potential types of property. In addition, there is the desired features, such as a garden or a pool.
These considerations help determine which properties are suitable and what financial investment is involved.
Before a purchase can even take place, prospective buyers must apply for a Spanish tax number.
It is known as the “Número de Identificación de Extranjero”, or N.I.E. for short. However, this is only a minor bureaucratic hurdle.
An application can be submitted, for example, through the Spanish consulates in Germany. Usually, a form and proof of identity, such as an ID card, are sufficient. The number is typically issued within two to three weeks.
Directly in Mallorca, the process can be significantly shortened and usually takes only one day. A small processing fee applies for the entire application and approval process. This amounts to approximately 15 euros.
To handle the later purchase and additional cost transactions, it is worth opening a Spanish bank account.
This is particularly related to the payment method. The purchase price is usually paid via a bank cheque.
Therefore, it is necessary for this to come from a Spanish financial institution. In addition, a Spanish bank account is also useful for other purchases and costs, helping to avoid unnecessary additional expenses.
What additional costs are involved
In addition to the purchase price, which depends on the type of property, the following additional costs apply when buying a house or flat.
First, there are the taxes. In Mallorca, buyers pay either value-added tax (IVA) and stamp duty/notarial tax, or property transfer tax.
Value-added tax applies to the first sale of residential properties (first occupancy). With the exception of the Canary Islands, it is uniformly set at ten percent nationwide.
The cost of the stamp duty, or notarial tax, is one percent of the purchase amount.
If the property is at least a second-hand sale, the buyer must pay the property transfer tax.
This tax, known as Impuesto sobre Transmisiones Patrimoniales, or ITP for short, already includes the stamp duty. In this case, no value-added tax applies. The property transfer tax payable depends on the amount of the purchase price.
A tiered system applies to the Balearic Islands, and therefore also to Mallorca. The minimum rate is eight percent for properties with a purchase price of up to 400,000 euros.
For amounts starting at one million euros, the rate is eleven percent.
Although land registration is not strictly required for a property, it is highly recommended.
This is because registering the deed of ownership in the property register is considered the only secure form of property ownership in Spain.
The notary and land registry fees for this amount to approximately one percent of the purchase price each.
Tips for the notary appointment
The timing of the notary appointment depends on the condition of the property, i.e. whether it is used, new, or still under construction. For example: if it is a used property, you will sign your deed of ownership approximately one to three months after the purchase contract.
For new builds, buyers should only sign the deed at the notary’s office once the developer can provide written proof that the property has been completed.
At the notary appointment, buyers must bring the required documents, such as a valid ID and their tax number.
For a property purchase or the signing of the deed before a notary, it is advisable to have a legal review carried out by a lawyer.
Since most notaries read out the contracts in Spanish, having a translator present is advisable. Some notaries even insist on it.
How is the seller usually paid?
As already mentioned, payment of the purchase price is typically made by bank cheque. This takes place at the agreed notary appointment.
Nevertheless, before the notary appointment, buyers should make sure there are no uncertainties regarding the payment method. Please note: if a deposit was paid before the sale was finalised, it is subject to VAT.
However, private contracts involving deposits should generally be avoided.
Buying property in Cala Millor
Cala Millor boasts excellent infrastructure. From basic amenities to a variety of sports and entertainment options, it offers everything needed for a pleasant stay. Since the area is touristy and sees high visitor numbers, there are no difficulties in renting out a property as a holiday home.
There is also a wide range of different property types available, from traditional fincas to modern residential complexes.
The comparatively low property prices are another argument in favour of purchasing a property in Cala Millor.
FREQUENTLY ASKED QUESTIONS:
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Property listings in Cala Millor can be found on real estate portals, through specialised estate agents or agencies, and in online classified ads. It is advisable to turn to experienced agents or agencies to avoid unpleasant surprises, such as possible financial encumbrances on the property.
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In Cala Millor, the seller usually pays the estate agent's fees, but there is freedom of contract, meaning the buyer can take on these costs instead. It is important to carefully review the contract terms beforehand and note that the agent's commission is typically around five to six percent of the sale price.
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In addition to the purchase price, buyers must factor in taxes such as VAT and stamp duty (certification tax) or property transfer tax. A land registry entry is highly recommended and incurs notary and land registry fees, each amounting to roughly one percent of the purchase price. It is also advisable to have a lawyer and a translator carry out a legal review at the notary appointment.