Frequently Asked Questions
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Buyers
When buying a property, you will need to pay the Property Transfer Tax (ITP) or Value Added Tax (VAT), depending on the type of property. Additionally, you will be responsible for the Documented Legal Acts Tax (IAJD), which is 1.2% in the Balearic Islands, and you will need to cover notary fees.
It is advisable to consult with the bank before starting to look for properties to know up to what amount you can finance. If you sign a deposit contract and later the mortgage is not granted, you could lose the money paid unless the contract includes a clause that makes the purchase conditional on obtaining financing.
Generally, the seller covers the estate agent’s fees, as they are the ones who engage our services to manage the sale of the property.
The first thing you need is to obtain a NIE (Foreign Identification Number), which can be requested at the National Police station in Mahón by appointment. Additionally, we recommend hiring a lawyer on the island to assist you with the paperwork and contract signing. Although it is not mandatory, having a bank account in Spain will make both the buying and selling process and subsequent payments related to the property easier.
Yes, you can benefit from a tax reduction of up to 100% if you meet certain requirements, such as: the purchase price of the property does not exceed €270,100, it is your main residence, you are under 36 years of age, you do not own another property, and you have been a resident in the Balearic Islands for the three years prior to the purchase. This reduction is specifically designed for young individuals with an annual income of less than €52,800 who request a minimum financing of 60%. Source: Balearic Tax Agency. Agencia Tributaria de Balears.
Generally, the bank finances up to 80% of the purchase price, which in the case of a flat costing €200,000 equates to a loan of €160,000. This means you would need to have saved €40,000 to cover the remainder. Additionally, you must factor in the purchase costs, such as the Transfer Tax (ITP), which is 8% in this case, amounting to another €16,000. However, if you meet certain requirements, you could benefit from a reduction of up to 100% of the ITP. For more information, consult the Balearic Tax Agency. Agencia Tributaria de Baleares.
In Menorca, holiday rentals are only permitted in properties that have obtained a Tourist Housing Registration, also known as a Tourist License. If you do not have this license, you will not be able to rent your property on a tourist basis, such as by the week. Renting without the license can result in severe fines. For more details on this topic, we recommend consulting our article on the regulations for holiday rentals in Menorca (include link if available).
Currently, there is a moratorium in place in the Balearic Islands that prevents the granting of new registrations for tourist or holiday properties. This moratorium began in 2022 and will last until 2026. After that date, it is still unclear what regulations will be applied to issue new licenses. Therefore, if you plan to generate extra income by renting out the property while you are not using it, we recommend focusing on properties that already have this license.
Generally, when owners decide to sell, they aim to do so within a short timeframe. Rent-to-own requires the buyer to pay a deposit of 10% and then pay rent for a specified period, which can be deducted from the final purchase price. This arrangement can prolong the selling process by at least one or two years, so most sellers do not usually consider this option in their expectations.
Don’t hesitate to contact us! Just because you can’t find the property on our website doesn’t mean we can’t manage it. It may not have been published yet, but we might already be in contact with the owners. Additionally, at Portal Menorca, our philosophy is based on collaboration, allowing us to work with virtually any agency on the island to provide you with the best service.
Property Owners
When selling your property, you will need to pay the Property Tax on the Increase in Value of Urban Land (IIVTNU), commonly known as the Municipal Plusvalía. Additionally, you should consider the fees of the estate agency, and if you make a capital gain, you will have to pay the corresponding Income Tax for Individuals (IRPF) at the time of filing your tax return.
The Municipal Plusvalía, or Tax on the Increase in Value of Urban Land (IIVTNU), is the tax you must pay to the Town Hall when transferring an urban property. This tax is levied on the increase in value of urban land from the time of its acquisition to its current transfer. Attention! If you do not make a capital gain on the sale, you can request an exemption from this tax from your Town Hall.
Not necessarily. At Portal Menorca, we offer different fee options and evaluate each case individually. Exclusive sales allow for more dedicated attention and a more focused strategy, which can influence the fees, whereas working with multiple agencies has its own particularities. It’s best to review the alternatives with an advisor to find the option that best suits your objectives.
Yes, you can sell your house even if it is rented. However, you need to consider certain legal conditions that protect the tenant. Generally, the rental agreement will remain in force even if the owner changes, meaning that the buyer must respect the terms of the lease, including the duration of the contract and the agreed conditions. Additionally, in some cases, the tenant may have a right of first refusal to purchase the property. If you are considering selling, it is advisable to review the lease agreement and consult with a professional to understand all options and obligations.
With Portal Menorca, you have access to all possible options. You will only have contact with one of our agencies and can choose the advertising option that best suits your needs. If you prefer to maintain discretion and not give your property much visibility, it will be published only on one of our websites, similar to a standard exclusive contract. On the other hand, if you are looking for a quick sale and want to reach as many clients as possible, we will expand the advertising by publishing your property on all the group’s websites, display windows, and other national and international websites. With Portal Menorca, we guarantee that we will adapt to your preferences.
Working with an estate agency to sell your property offers multiple advantages that simplify the entire process. From managing notary appointments and preparing documentation to arranging professional photographs and organising viewings, our team takes care of all calls and inquiries, ensuring that every interested party receives the appropriate attention. Additionally, we provide a post-sale service that includes advice and support, allowing you to enjoy a hassle-free selling experience. With our experience and market knowledge, we help you maximise the value of your property and close the sale efficiently.
If you decide to sell your main residence to reinvest in another property that will also be your main residence, you won’t have to pay taxes on the profit made from the portion that you reinvest. However, it’s important to consider other costs, such as the Tax on the Increase in Value of Urban Land (IIVTNU), commonly known as the Municipal Capital Gains Tax, and the fees for the estate agency, among others. Be sure to take these aspects into account when planning the sale.
If you are over 65 years old and decide to sell your main residence, you won’t have to pay taxes on the profit made from the sale. This is because the increase in capital gains is considered a supplement to your retirement. It is an advantage that allows you to optimise your resources at this stage of life.
If you make a capital gain when selling your property, you must include it in the taxable base of savings, taxed as follows: 19% for gains up to €6,000. 21% for the bracket between €6,001 and €50,000. 23% for gains from €50,001 to €200,000. 27% for gains between €200,001 and €300,000. 28% for gains exceeding €300,000. If you have incurred a capital loss, you can offset it against capital gains made in the same financial year, subject to certain limits, which will reduce your tax bill. If there is still a negative balance after this offset, you can carry forward the loss for the next four financial years.
According to the Housing Law of the Balearic Islands, the certificate of occupancy is not a legally mandatory requirement to sell your home. However, if you do not have this document, it is crucial to explicitly mention it in the contract or in the sales deed. In other autonomous communities, on the other hand, presenting the certificate of occupancy is mandatory to carry out the sale of a property.
In today’s world, having information well-placed across various sites can attract potential buyers for your home. However, if for any reason you do not want it to appear on certain media, just let us know, and at Portal, we will limit the advertising. Nonetheless, we do recommend that you allow us to advise you on this matter. Each case (and each home) is unique, so it needs to be handled individually to determine the best option.
In the current market, having your property well-positioned on various websites and other media can increase the chances of finding the ideal buyer. However, if you prefer to limit its publication on certain media, just let us know, and at Portal Menorca, we will adjust the strategy according to your wishes. Still, we recommend that you allow us to advise you, as each property is unique and deserves a personalized approach to find the best selling option.
This is one of the highlights of Portal Menorca. Although we are several agencies working as a team, you will always have contact with the same person (or team) from day one. This close relationship will allow you to receive all the information promptly, whether it’s about visits, price adjustments, or marketing strategy. You will have your trusted contact within the Portal Menorca team, who will keep you updated throughout the entire process.
At Portal Menorca, we offer a free valuation of your property. We visit the home, check its features, and analyze its viability. Then, using a market comparison system, we determine a value that is usually very close to the final selling price.
Users of the Portal Menorca website
To request information about a property, simply visit its page or listing and fill out the contact form. You can also call us, send us a message on WhatsApp, or email us. We will be happy to assist you through your preferred channel!
If you have any questions or can’t find what you’re looking for, don’t hesitate to call us, send us an email, or contact us via WhatsApp. We will be happy to help you find exactly what you need.
Yes, absolutely. If you provide us with the characteristics of the property you are looking for and your budget, we will send you an email each time we have a new property that meets your criteria or if there is a price reduction on one that may interest you. (Form available on our website).
It’s very simple. Go to the page or file of the property through the ‘Buy’ section or by searching for its reference, and then fill in the visit request form. We will contact you to arrange a viewing as soon as possible.
It’s a service in which we take care of finding the property that fits your preferences in Menorca, using our network of contacts and internal portfolio. You define the characteristics, location, and budget, and we will find the best option for you, saving you time and effort.
In the “About Us” section of our website, you will find a list of the different agencies that are part of Portal Menorca. From there, you can access each agency’s page and obtain their contact details to communicate directly with the one you prefer.
Currently, you cannot track the status of your property’s sale through the website, but we are working to offer that functionality in the future. In the meantime, to find out the status of the sale, we recommend that you contact the agency handling your sale. They will provide you with all the detailed information about your property’s situation.