Mallorca has long established itself as a popular vacation destination and second home for many Germans, but recent tax incentives are now making the Balearic Islands even more attractive for real estate investors. Here are the main reasons why now is the perfect time to invest in Mallorcan real estate.
Tax advantages like never before
Since January, the regional government of the Balearic Islands has been offering exceptional tax incentives for property buyers. The wealth tax allowance has been raised from 700,000 euros to an impressive three million euros. This means that assets up to this amount are now completely tax-free. This fiscal change represents a significant relief for many international buyers and investors.
Influence on the real estate market
Despite a slight decline in sales figures compared to the pre-corona period - with 15,000 residential property sales in 2023 - the real estate market in the Balearic Islands remains robust. This figure is in line with the average of the last ten years, which underlines the long-term stability of the market.
Attractive locations for high demands
Places such as Puerto Portals or Port d'Andratx are particularly popular with wealthy buyers. Exclusive properties can be found here, such as a renovated villa with sea views that is currently on offer for just under three million euros. Such properties not only offer luxury and privacy, but also a solid investment opportunity.
Tax benefits for heirs
Another incentive that was introduced last year is the abolition of inheritance and gift tax for first-degree relatives. This measure makes it even more attractive to transfer assets within the family on the Balearic Islands.
What does this mean for potential buyers?
For interested buyers, this represents a rare opportunity to invest in a market that is supported by extensive tax incentives and stable demand. At the same time, the island offers a high quality of life and is easily accessible thanks to numerous flight connections. With the new regulations, buyers can make significant savings while investing in one of the most desirable locations in Europe.
Personal consultation recommended
Despite the many advantages, we at Claus von Benz Immobilien recommend that you seek comprehensive advice before buying a property in Mallorca. In addition to the tax aspects, local building regulations and the coastal law are also important factors that must be taken into account.
CONCLUSION
Mallorca remains a top investment for German real estate buyers, and recent tax changes now make it even more attractive. Whether as a vacation home or a permanent residence, the Balearics offer a combination of quality of life and financial incentives that is hard to beat.
Welcome to the "seventeenth state": Why Mallorca is a top investment for German real estate buyers right now
