So as we begin to analyze the impact of the 4% reduction on property taxes for new build property in Spain it becomes clear that some areas are going to considerably benefit over others and Mallorca comes very close to the top of the pile in this regard.

First things first is you have to understand a little bit about the Mallorca property market and the factors that are in play here compared to the Costa of Spain. Firstly without doubt Mallorca is the jewel in the Crown of the Spanish property market, the London or Paris of the Spanish property market for several reasons. The most important of these is that due to strictly enforced planning laws there is no oversupply of property and only the natural depression that you get in a recession just like London had back in 2009. Secondly is the huge demand not only from UK citizens but from Germany which hasn’t been nearly as adversely affected as other European Countries. This is also a desirable destination for the Swiss and there buying power has increased by 40% alone in the last twelve months. These are key facts that you won’t find in the mainland of Spain.

So how does this tax reduction help the Mallorca property buyer? Again we come back to the central point that Mallorca is now a flat market and there are no real super deals to be had anymore even though some people falsely believe they still exist. Last year my company had the best year ever in Mallorca by being able to bring buyers and sellers together and this year that just hasn’t been the case with Vendors asking more and buyers looking for last year’s deals. This brings us back to the central point if there are no real deals to be had being able to get 4% off the price of a new build property is a huge benefit especially when there is no real difference in costs for comparable products.

I believe this is a huge benefit to buyers in Mallorca and from my business point of view this is going to totally transform our business in Mallorca in the last four months of the year.

Property for sale in Mallorca does really offer a great investment opportunity for all the reasons mentioned in this article and there is new build property on the island starting from 200.000 Euros and it is most definitely worth checking out.