The process of selling or buying a luxury villa in Mallorca more likely than not will bring a series of complicated bureaucratic processes. Some of them can be simplified thanks to the real estate agents at our estate agency in Pollensa. However, there are others which inevitably cannot be avoided, and action must be taken by the buyer or the seller. Amongst the aspects which provide most worry to those involved in the transaction, are the charges which come from a sale or purchase, including taxes. In this blog article we will be giving you more information about the expenses which you should always have in mind. Continue reading!
A statistic which always catches out a lot of buyers of luxury villas in Mallorca is that the price of the property will increase by an approximated 10% in terms of expenses, fees and taxes. To begin with, we take on the role of the notary and the property registry. The notarial expenses arise from the public deed in the sale or purchase and are summarized in the following list: a 300,000 euro property equates to 300 euros of expenses; a 500,00 euro property equates to 450 euros of expenses; a 700,000 euro property equates to 520 euros of expenses; a 1,000,000 euro property equates to 600 euros of expenses; a 1,500,000 euro property equates to 720 euros of expenses and a 3,000,000 euro property equates to 1,100 euros of expenses. As for the property registry costs, which arise from the registering of the sale, they correspond to the following charges: a 300,000 property equates to a 280 euro charge; a 500,000 euro property equates to a 335 euro charge; a 700,00 euro property equates to a 385 euro charge; a 1,000,000 euro property equates to a 460 euro charge; a 1,500,000 property equates to a 560 euro charge and a 3,000,000 euro property equates to a 780 euros charge.
In the instance that you need to request a mortgage to cover the costs of a luxury villa in Mallorca, you must negotiate with the bank the management and administration fees of the mortgage, as well as the solicited entry. In regards to the taxes for buyers, if they are new builds, you must take in to account the added value tax (IVA) which is 10% of the property value and the Tax on the Transfer of Assets (known as ITPAJD) in the form of stamp duty, which in Mallorca can be up to 1,2% of the property price. If they are second-hand homes or older you must have in mind the Tax on the Transfer of Assets and stamp duty, which in Mallorca is between 8 and 11 %.
Before proceeding with the indirect expenses which come from selling a luxury villa in Mallorca you must always consider the community fees and provide proof of payment by means of a certificate from the president of the community by obtaining a certificate to state that all charges have been paid and are up to date. One of the universal charges in every process made through a real estate agency in Mallorca are the agency fees, which are the responsibility of the seller and can vary between 3 and 6% of the property price. Also, the IBI, which is the annual real estate tax which represents between 0,5 and 1% of the cadastral value of the property must be paid.
The two largest taxes which must be taken into account when it comes to selling a luxury villa in Mallorca are the community added value tax, which is centred on the increased value of the land between its purchase and sale; and Personal Income Tax (known as IRPF) or in the case of non-residents the Non-Resident Income Tax, which will not be paid when the sale is made by those over the age of 65.
Have you thought about buying or selling a luxury villa in Mallorca? At Frank Heinsbroek Real Estate Boutique,we can guarantee complete professionalism and guidance to guarantee your success. Contact our real estate agents and make your dreams a reality.