Palma de Mallorca, a city with a rich history that dates back to the Roman times, is famous for its beautiful historical sites such as the Palma Cathedral and the Almudaina Palace. This charming city is situated in a bay on the southwestern part of the idyllic island of Mallorca, with panoramic views of the dazzling Mediterranean coast. Its geographical location is synonymous with paradise, surrounded by the Tramuntana Mountain range to the west and the central plain of Mallorca to the east. Its warm temperatures and dazzling sun make Palma a desired destination all year round.
Luxury Real Estate Market in Palma
The market for exclusive real estate in Palma de Mallorca is particularly strong right now, with a healthy balance of supply and demand. High-end properties in the coveted areas of Son Vida, Portixol and the old town take up a large part of buyers' interest.
Financial Aspects of Buying a Property in Palma
The average commission for purchasing a property varies depending on the real estate agent, but it is usually between 1-2% of the selling price. When buying a property, one has to take into account additional costs such as the transfer tax (8% to 11% depending on the value of the property), notary fees, and possible property inspection costs.
Tax Rates
It is vital to understand the taxes related to the property as soon as it is decided to buy a house in Palma. The wealth tax is from 0.2% to 2.5% depending on the net value of your property. If you sell your main residence, you do not have to pay taxes on the gains obtained from the sale price, unlike second residences where it is taxed at a rate of 19% for the first €6,000 and goes up to 23% for gains of over €50,000. Additionally, the corporate income tax for companies registered in Palma is 25% and the income tax for residents is from 19% to 47%.
Mortgage Requirements
Spanish banks tend to offer around 60-80% of the purchase price as a mortgage. This is determined based on the assessment of your ability to repay the loan, taking into account your income and other factors.
Location and Accessibility
Palma de Mallorca is located in the province of the Balearic Islands and is the largest city with a population of around 400,000 inhabitants. The city is well connected to the road and railway network, and is only 7.5km away from Palma International Airport.
Education, Health and Services
Palma is home to prestigious schools, universities and institutions, including the University of the Balearic Islands and the Agora Portals College. In terms of health, there are excellent facilities like the Son Espases Hospital and the Juaneda Miramar Clinic.
Life in Palma de Mallorca
Life in Palma de Mallorca is a dream come true for lovers of outdoor activities. With its access to spectacular beaches, mountains for walking and hiking, and incredible golf courses, Palma is a true paradise. Besides, culture and art enthusiasts can explore famous museums like Es Baluard and the Juan March Foundation Museum. The city also offers a wide variety of luxury shops, high-quality restaurants like Marc Fosh and hotels like the decadent Can Alomar Hotel. Finally, the city's public infrastructure is excellent, with efficient and reliable public transport making daily life in the city easy.
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