The sun. The lightness. The lifestyle.
If you visit Mallorca or another Balearic island several times as a holidaymaker, the question arises: Why not just spend a lot more time here, maybe even move your permanent residence?
And yes: Mallorca is a paradise. An ideal place for stressed people to relocate.
But: Under the impression of the beautiful island life, risks for one’s own assets are often underestimated. If you do not consider these points early on, you will lose capital unnecessarily.
1) Taxes
Tax consultants usually specialize in their home market. Cross-border tax issues are therefore often not examined comprehensively and objectively from all sides.
It may even be that you unknowingly trigger tax mechanisms and this is associated with financial losses.
This includes issues such as exit tax, actual tax residency and the situation when whole families wish to relocate. Even if this is only temporary, there are important points to consider.
2) Location
A three-week holiday is not comparable to permanent residence or stays of several months. The demands on the spatial environment, the infrastructure and the micro-location are different. Everyone weights something differently here. But experience shows that routes and local infrastructure contribute far more to the quality of life than initially assumed.
Mallorca offers wonderful regions, but not every place is equally suitable for long-term stays.
3) Associates
If you want to set up a second or first residence in Mallorca, you will always look for a partner who will help you with the organization, dealing with the bureaucracy and the different requirements.
Here lies opportunity and risk. Ultimately, there is the question of the professional competence and self-interest of each helping unit.
How much proven experience does the partner have?
Does he know the entire island or just individual regions?
How good is his network?
And above all: What does he benefit from? Does he simply want you to purchase an expensive property from his listing?
Ask critical questions when choosing a partner – so that your dream project doesn’t end up being more difficult and expensive than planned.
Are you planning an investment in Mallorca, a second or primary residence on the island? We specialize in discreet solutions for demanding clients. Feel free to contact us.
