Buy to let Holiday Villas Majorca Mallorca Travel Destinations Spain

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A holiday villa can make for a sensible investment, particularly for anyone who plans to divide their time between two countries. While far more expensive than mainland Spain, Mallorca enjoys stable growth in property value and, with more and more people emigrating from their native lands, some might predict a healthy property rise from purchasing on the island, providing that their investment is sound and fully researched.

Demand for Mallorca holiday villas in the most popular resorts for both holiday and longer lets is rarely met, and during the high season prices can treble those charged during the cooler months. Even if you're planning to live in your property for much of the year, it's still possible to repay your annual mortgage costs with what is earned during the summer.

You will need to decide whether to let your property independently or through an agent. If you choose the latter, be selective and seek a recommendation; standards differ wildly and commission can be steep.

If your Mallorca holiday villa needs staffing you should account for spending almost double an employee's annual wage after social charges' contributions plus the two months' bonus salary given each year. Corporation tax on small to medium sized businesses rests at 30%, and the assets deductible system is not as generous as in some overseas countries.

Qualities to look for in a villa when buying to let:

Location beachfront properties are always in high demand, as are those located in beautiful surrounds and the more popular towns.

Many villas offer pools, so if yours does not have one then it may get passed over in favour of the competition.

Good transport links it might be beautiful, but if it takes three hours to get to the nearest town then the customer may not be happy.

Weather remember that the southern and western parts of the island enjoy year round sunshine and good amenities. In the north and east winters are far colder, and thus these areas tend to operate on a six month year.

Growth potential is its nearest town enjoying a programme of redevelopment, are more high end restaurants and shops opening up? Or are there plans to open a rubbish dump next door and a pylon right in the middle of that lovely sea view?