Buying Guide Details

Buying Property in Menorca (Minorca)

Where to buy property in Menorca (Minorca)

Around 70% of property in Menorca (Minorca) is sold to the British and in tandem with tight building restrictions, this demand continues to fuel good capital growth in property values in Menorca. Despite an increase in tourist numbers and demand for property in Menorca (Minorca), it retains a reputation as a quiet and sedate neighbour to Mallorca and Ibiza. It does not have the club culture and large resort developments of those two islands.

Natural beauty and seclusion are two of the big draws to home buyers looking to purchase property in Menorca. Some of the 100+ beaches are still only accessible on foot and the whole island has been declared a biosphere reserve, ensuring its flora and fauna are protected and that any future property construction will be minimal.

The main populous areas are today’s capital, Mahon (Mao), in the east and the former capital Ciutadella in the west, both coastal towns with an attractive but mutually distinct appearance. Close to Mahon (Mao) is Es Castell, an established favourite resort, while further round the east coast are Punta Prima and Binibeca Vell. The north coast is largely undeveloped, though Arenall d’en Castell and the marina at Port Addaia are notable.

It’s possible to pick up cheap property in Menorca for restoration inland, though it is worth bearing in mind that renovation costs are high. West coast resorts such as Cala en Blanes and Los Delfines, both very close to Ciutadella, tend to have the cheapest properties on Menorca.

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Buying Process

Anyone wishing to buy (or sell) a property in Menorca must first obtain from the state – in person – a fiscal number for foreigners known as NIE (numero de identificacion de extranjeros)
Once the buyer has received the NIE number, the buyer’s lawyers can make an offer on their behalf. When a price has been agreed, it is recommended that both parties sign a preliminary agreement which outlines details such as the completion date
A deposit of 10% is the normal amount placed to secure the deal. After this, if the buyer pulls out they lose the full deposit but, should the seller decide not to go ahead, he/she must return double the amount of the deposit – i.e. 20% – to the buyer
If a property in Menorca is purchased off-plan, it is usual for payments to be broken into stages, the balance being paid when construction finishes
On completion, when all the necessary checks have been carried out, both parties sign the escritura (title deeds) in the presence of a notary. The buyer then pays the balance, plus all other fees and taxes. Copies of the deeds are sent to the Land Registry and the tax office.

Homes Overseas Property Club

Homes Overseas has joined forces with a collection of IFA specialists to form the Homes Overseas Property Club (HOPC), designed for existing and prospective overseas property homeowners.

The Club – which has access to international lawyers in no fewer than 43 different countries - has been set up in order to guide people through some of the various issues relating to buying and maintaining a property overseas. It offers advice on a range of topics, including financial, legal, insurance, taxation, property management and foreign currency matters.

For further information please telephone 0845 838 7142 or email info@homesoverseaspropertyclub.com

Fees & Taxes

Taxes and fees usually amount to around 10% of the total purchase price of the property
Taxes payable depend on whether the property in Menorca being purchased is new-build or resale. Currently, transfer tax of around 7% is applied on resale property in Menorca, which includes stamp duty. For new-build property in Menorca, VAT (IVA) of 7% is payable in addition to 1% stamp duty
On top of this there is also plusvalia (capital gains tax), which is set by the local authorities and depends on the area concerned and the amount of profit being made on the sale. This is usually paid by the seller
If the buyer is purchasing land or commercial property in Menorca rather than residential, VAT is 16% as opposed to 7%. Stamp duty remains the same
Most Spanish lawyers charge around 1% of the final purchase price, and notary fees are around 0.5%
Agents’ fees can vary anywhere between 2% and 15% – so be careful not to be ripped off

Getting there

There are flights to Menorca (Mahon) direct from all over the UK.

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