| Menorca the Guide to owning Property in Menorca
Below is our mini guide to buying property in Menorca, this is not a complete guide, it's just a few pointers to give you an idea of what's involved and and what to consider when making the purchase.
If you're thinking about moving to Menorca, we would like to draw your attention to a number of articles that have been written on the subject of taking up residency on Menorca by Deborah Hellyer, and previously published in Roqueta.
Children's education.||Relocating to Menorca.||Newcomers, a few answers
Buying your dream home in Menorca
uying property on the island of Menorca has become very popular. Menorca has a healthy climate, very friendly people and low crime rate, Menorca is quickly becoming one of the few places in easy reach of the UK where your second home can not only cater for you and your family's holiday needs in a peaceful friendly environment, but can also make a sound investment for your future.
Now is an excellent time to buy a property in Menorca, either as a holiday home, investment, or as a home to live in. All API registered estate agents have a very wide selection of properties, from farmhouses and plots, villas and apartments to townhouses and new developments. Full details can be found on their web site and they will help you through every step of the buying process.
What you may need to consider from the very start
ight then you've just returned from your visit to Menorca, or perhaps you are a regular visitor, and decided you would like to invest in a property, be it for holidays / rental income or you intend to make your life here in Menorca, either now or sometime in the future.
here are one or two decisions to be made before you even start to look for a property. Do you choose a coastal resort or inland town. If you choose the resort, as just about everyone enjoys the sea and holiday atmosphere, there are special considerations to take into account. Some holiday resorts practically close down from the end of October to Easter, have you ever spent time in Menorca through the winter months?. A property very near the sea will have higher maintenance costs due to winter storms and salt corrosion. There are benefits though one being the rental potential another being the surroundings.
f you choose a year round community / inland town it may be harder to let if you require some income from it to help with the running costs. But has the advantage of being in an all year round community with bars and restaurants, shops and banks etc and the friendly face next door all year round.
ext you must consider your budget, decide what your maximum upper limit is, then deduct 10% for legal and other buying costs plus a further 2-3% (example: currency fluctuations). It's always better to have a financial cushion behind you for the unexpected. Also take into account any improvements/decorations you may wish to do to the property and the furnishing etc.
You should find out details of the yearly costs associated with the property, such as the rates. Any community maintenance fees, e.g. for communal gardens or pool etc. The charges for refuse collection, Water supply charges, Electricity charges and any Income or other tax that may be levied on the property you wish to buy. Be quite clear on what additional annual costs may be involved. Your estate agent can provide help in these matters.
Some thought must go into these and other considerations before you start looking for that perfect home in Menorca.
Ernesto Quintana & Associats
If you are resident, or a non resident home owner, or are planning to buy property on Menorca, you will
need to consult a professional tax advisor.
We are a multilingual business friendly, but dynamic firm of qualified accountants based in Mahón (Menorca). Our services include, providing tax, accountancy and business development advice and services to residents and non-resident individuals, small businesses and start-up companies. Ernesto Quintana & Associats
will give you free and easy to understand, friendly advice on your tax liability's as a home owner in menorca.
To find your dream home you will need an Estate agent.
he leading API
registered estate agents have built up a wealth of experience and knowledge of the Menorcan property market. They will give all the guidance and help you need to find a suitable property. They can show you the finest selection of properties suiting your needs and budget, advising as to the best areas, comparing prices, location and quality.
As well as having an extensive portfolio of properties ready to move into, they can also help locate the perfect plot of land and manage the construction of your new home. Liasing with architects, builders and all the other service providers needed.
Now you've found the perfect property
ou must seek good legal advice right from the beginning preferably with a good Menorca lawyer. Menorca has many excellent English-speaking Spanish lawyers well versed in property purchase. Choosing the right lawyer can be difficult in a foreign country, this is another area where the agent can help, by directing you to a reputable law firm who will make sure that all Spanish legal requirements are met. In Menorca it is paramount that you have good and legal title to the land your property is built on, as the land owner, owns all that is built on it. Also the lawyer will check for any outstanding mortgages or other debts on the property as a new owner will inherit any such debts.
Your lawyer will negotiate the purchase terms on your behalf, with the seller's lawyer. The terms may not only include the price but can cover all requirements such as the completion date, the method of payment, etc. Once you have appointed your lawyer they will explain the procedure involved in buying your holiday home in Menorca and all costs associated with it.
Once you have found your perfect holiday home, and made the decision to go ahead with the purchase, you will then be asked to make an initial down payment to reserve it. You then have only a short period of between 10 and 15 days to exchange contracts [Menorca being Menorca it could well take a little longer] but before doing so you should seek legal advice, if you haven't already done so.
After paying the deposit the agreed terms of purchase should be put in writing. The lawyer will now draw up a contract but before the exchange of contracts they will have completed the land registry searches in respect of the property. This contract gives both you and the vendor protection under Spanish law.
On the agreed date for the completion of your purchase you or your lawyer will go to the Public Notary, sign the title deed and make the final payment. The possession of the property will then pass over to you, The symbolic' handing over of the keys'. The sale is now complete.
The notary will now send details of the title deed to the local land register informing them of the new owner. Your lawyer will then make the final arrangements for registering your title to the property. He can also help with the utilities and services such as electricity and water, and helping you to set up payments through a local bank.
Additional expenses involved with buying a property
s is the case everywhere property purchase will involve some additional expenses. Your chosen estate agent can advise on what these will be. The Notary will charge according to a fixed scale, also the land registry make a charge.
Associated taxes will vary according to the type of property and whether it's newly built or perhaps it's just a building plot you're purchasing. There may also be a tax levied by the local council, and again your chosen estate agent can advise on what your liability may be. You will also need the services of a qualified tax advisor for your yearly tax return.
Finally don't forget your lawyer, as they will charge for their services and will give an estimate before you proceed. And of course there may be VAT [IVA] to pay on some service charges.
Mortgages for Spanish Homes.
ll leading estate agents can assist you in applying for a mortgage through a bank here in Menorca, as interest rates here are currently very competitive. They can also give advice on the best rates on offer at this time.
Advice should also be sought in the area of Taxes in Spain for non residents your chosen estate agent will be able to help in the explanation of Taxes and other costs both local and national involved in the owning of property in Menorca, but it is wise to consult a Professional Spanish tax advisor in Menorca.
Other articles relating to living on Menorca
Relocating to Menorca.
Education _guide to Menorca.
Newcomers, a few answers.
Home buying home page
The above articles were correct at the time of publishing.