Majorca real estate - Mallorca property – Licensed partner of Engel & Völkers

"Our good name sets standards"

Dear friends of Mallorca:

Where social and professional circles of discerning and sophisticated individuals move freely, the brand Engel & Völkers feels fully at home.

Both our exclusive clientele and our professionally trained sales agents made it possible for Engel & Völkers Majorca to sell first-class residential properties with a total value of approx. 150 Mio. € on the island of Majorca last year (in the southwest of the island the average sales price per property amounted to more than 1.2 Mio. €).

Moreover, Engel & Völkers Majorca obtained last year – in comparison to 2010 – a turnover increase of 27 % (Engel & Völkers worldwide 19 %).

Based in 36 countries and spanning over five continents, we are operational worldwide with a total of 449 Engel & Völkers residential property offices (17 on Majorca), 38 commercial offices and 564 Engel & Völkers licences worldwide, continuously expanding our network.

These figures alone show that your property is in the best hands with us and we would like to thank you once again for the trust you are placing in us!

Furthermore to provide the service you are used to by us, we would like to remind you once more of the Law 10/2010, developed and adopted on April the 28th of 2010 by the Spanish government, on prevention of money laundering and the extra documentation we need to keep in our records from you. We kindly ask you to send it back to us at your earliest convenience if not already done so.

Thank you very much in advance for your support!

Furthermore, we would like to advise you of the latest changes regarding taxation. Enclosed please find a corresponding extract from the Spanish law ("Boletín Oficial").

As the budget deficit last year of 8% was higher than the one forecasted by the socialistic government under Zapatero of 6%, the new conservative Spanish government under Premier Mariano Rajoy decided a drastic austerity package on 30th of December 2011. To reduce this deficit to 4,4% this year – as agreed with the European Union – following changes are relevant for you as owner of a property on Majorca:

a) Increase of the income tax for residents: Increase according to annual income between 0,75% and 7% for 2012 and 2013 (see table a) in the attachment "Tables regarding taxation changes")

b) Taxation of capital income for non-residents: interests, dividends, profits of properties, investment funds, etc. – increase according to profit between 2% and 6% for 2012 and 2013 (see table b) in the attachment "Tables regarding taxation changes")

c) Deduction and advance payment of taxes (Retenciones): Increase from 19% to 21% for 2012 and 2013

d) Value Added Tax: Perpetuation of the reduced tax rate of 4% on investment in real estate liable to VAT (new buildings), for the first time only for 2012

The Royal Decree (Real Decreto) 20/2011 of 30.12.2011 includes some more aspects as the ones mentioned above. However, we think that those are the most important ones for you as owner – regardless whether you are resident or non-resident in Spain.

 

The content of this information is only intended to provide information of a general kind. We assume no liability for the content. Therefore we recommend you to discuss this topic in detail with your tax counselor.

 

Your E&V Team Mallorca Southwest