Mallorca and Menorca may sit side by side in the archipelago of Spain in the Med and share many characteristics but when it comes to luxury real estate – villas and vacation homes – each island offers something unique to international property buyers flocking to their sun-kissed beaches.
It’s the best time to claim a piece of an idyllic Mediterranean island
Spain has seen robust recovery since the 2008 financial crisis, and the growing number of new residential construction projects in Mallorca attest to the revival of the country’s fortunes.
The construction boom is expected to continue for the next few years, especially in the upscale property sector, so now it’s the best time to claim a piece of an idyllic Mediterranean island.
British buyers have traditionally been the leading second-home buyers in Mallorca but their number has decreased due to the uncertainty surrounding Brexit and the pound-to-euro currency exchange rates. Meanwhile, Switzerland and Russia are emerging as prime investors in new developments. Anв Menorca is very popular with the French.
Mallorca: from designer luxury villas to wonderful “finca”
Mallorca is a popular destination for second homes due to its pleasant climate and a wide range of activities.
It has more than 260 beaches, an incredible landscape (with the spectacular Serra de Tramuntana mountains) and a lively, authentic city of Palma de Mallorca. Visitors and residents of the islands can enjoy visiting attractions from the Dragon Caves or the Mallorca pearls factory to Marineland, the home of the award-winning wildlife shows, and the ports with a wide selection of exclusive restaurants, shops and bars.
Areas in the southwest of the island such as Port d’Andratx, Santa Ponsa and residential areas close to Port Adriano are especially popular as they are home to international schools, luxurious villas, ports, golf courses around. These areas are especially popular with German, Swiss, Scandinavian and Russian buyers.
Homes to buy – Port d’Andratx:
- Property #1 Charming luxury villa in Mallorca with an impressive view to the sea and the mountains, price on request
- Property #2 Luxury villa in Mallorca, Camp De Mar, € 12,900,000
- Property #3 Stunning luxury villa in Mallorca with two outdoor swimming pools, € 9,900,000
In the city Palma de Mallorca, Santa Catalina is a very well-known neighborhood with many trendy restaurants and bars. In the heart of the neighborhood you can find its vibrant indoor market and a yacht club sitting right next to it. Ropemakers and flour millers used to live here, and some of the 18th century windmills still remain. Popular with Scandinavian buyers.
Homes to buy – Santa Catalina:
- Property #4 Luxury villa in Santa Catalina, Palma, € 3,500,000
Son Vida is a residential area with luxury villas close to Palma, surrounded by golf courses. It offers exclusive views overlooking the city and the bay of Palma. Son Vida is especially loved by German and Swiss investors.
Homes to buy – Son Vida:
- Property #5 Luxury Mediterranean-style designer villa in Mallorca with views of the Bay of Palma in Son Vida, € 10,900,000
- Property #6 Stunning contemporary villa in Son Vida, Mallorca, € 5,500,000
Menorca: from extraordinary 18th century villas to tranquil luxury estates
Menorca is a smaller and more traditional island with many idyllic bays. It is an excellent location to escape to from a busy life elsewhere. It’s perfect for those long walks and horseback riding or mountain bike trips along the coast that circumvents the island.
Choose from luxury, design-focused villas by the sea, as well as rustic countryside estates that reflect the historical influences of Spanish, British and French colonizers in Menorca.
Mahón and Ciutadella are the two main cities of the island. There you will find ancient palaces, influenced by contemporary art, architecture, and design combined with an abundance of restaurants and bars.
Homes to buy – Mahón and Ciutadella:
- Property #7 Luxury villa in Menorca, between the historic center of Ciutadella and the beautiful unspoiled beaches, € 3,900,000
- Property #8 Menorca, classic style villa in the middle of nature that has a modern interior design, € 1,900,000
Many residential areas can be found on the coastline of the island areas around beautiful small coves. Son Xoriguer and Cala Morell are a couple of exclusive properties that could become your home in blissful Menorca.
Homes to buy – Son Xoriguer and Cala Morell:
- Property #9 Exclusive villa in Menorca located on Cala Morell cliff, € 1,150,000
- Property #10 Luxury truly unique villa in southwest of Menorca, € 4,500,000
Lower taxes for EU-citizens and residence permits for non-EU investors
There are definitely some very interesting benefits for foreigners who buy in the Balearic Islands. One of them is the Beckham Law. It is aimed at foreign employees moving to Spain with an employment contract to help reduce their tax liability. A qualifying person would opt for the Spanish tax residency and be able to pay income tax at a rate of 24% for a salary of up to €600,000 and 45% for income above that threshold for up to six years. This is an attractive option for those with a medium-high income moving to Spain. It also positively affects premium real estate market.
Non-EU citizens could benefit from the so-called ‘golden visa’ which grants a Spanish residence permit to foreign investors who invest at least €500,000 plus VAT in real estate there.
Newly constructed luxury villas in Mallorca are more beneficial in terms of tax payments compared to second-hand homes.
In 2015-2018, there has been a slight increase in the sale prices of high-end properties in Mallorca, and the demand for rental properties remains healthy as the island’s reputation of a popular holiday destination has grown.
In comparison, Menorca offers lower buying and rental price tags (even in the high-end market segment) as it is yet to be discovered by tourists – but remains a very perspective area with its luxury seafront villas and spectacular houses, attractive landscapes, and scenic routes.