In recent years, we have seen a significant increase in real estate transactions in Ibiza, which together with the special attraction of the island and the scarcity of supply, has caused an accelerated increase in prices with the consequent fiscal impact that this means for the investor, whether national or foreign.
All this, together with other urbanistic peculiarities that we will mention later, makes it essential that the investor is guided in this process of buying or selling by a local lawyer expert in real estate. From Manzanares Abogados, with more than 30 years of experience in the urban and real estate sector, we consider it necessary to provide legal advice based on the knowledge of the local urban regulations, which provides the investor with a specialized service and works the accommodation between the legal and the fiscal part of the investment; thus, avoiding that our clients buy a property with some urban irregularity and taking care that the fiscal repercussion is adequate and known prior to the investment itself.
Analysis of the real estate market in Ibiza..
The work of the local lawyer in the legal advice to the real estate investor in Ibiza is crucial, taking into account the above mentioned and also because of the urbanistic characteristics of the island itself and the existing regulations. In this sense, the lawyer becomes your best partner, who guides you throughout the procedure.
The client who is looking to buy a property either as a second home or to invest in the real estate sector, must be properly informed. When the client decides to invest in other cities such as Marbella or Madrid, buying properties located in certain residential areas qualified as urban land, these areas already have an urban development that complies with the parameters required by urban planning regulations. However, this is not the case in areas classified as rural land, where the work and study carried out by the lawyer is greater and more complex, as it is necessary to attend not only to the adequacy of the construction to the current urban planning regulations, but also to the supply of services such as water, electricity connection, access to public roads, garbage collection, etc.
In particular, what happens in Ibiza is that as a result of this shortage of supply of properties located on urban land, we find properties built on rural land that do not respect the urban planning regulations because of extensions or modifications made without meeting the urban planning requirements of the moment or even because we find properties that are booked in areas classified as Areas of High Level of Protection (AANP), or Natural Areas of Special Interest (ANEI), among others.
The value of hiring a local real estate law attorney.
The lawyer’s work, among other phases in the purchasing process, requires two important preliminary reports:
- THE TAX REPORT: This report, carried out by a team of lawyers who are experts in international taxation, will provide the client with a personalized analysis depending on his economic situation so that he can decide on the vehicle that best suits his tax situation in order to make the investment, whether through his foreign company, as an individual, by incorporating a Spanish company…
- LEGAL REPORT: At the same time, the Lawyer must provide a Pre- Due Diligence that describes and analyzes the legal and urbanistic situation of the property that the client wishes to buy, analyzing all the peculiarities and urbanistic notes of the same. This legal report is not only focused on a description of the characteristics and information that the Land Registry, Cadastre or the Town Hall itself has about the property, but it goes beyond the analysis of the town planning regulations and provides conclusions with the possibility of adaptation to the regulations or the possibility of regularizing the situation to adapt it to the current regulations, as the case may be.
This work of a lawyer specialized in real estate and knowledgeable in local and regional urban planning regulations, offers peace of mind and guarantees to the client who is making an important investment in this highly desirable island.
Investing in Ibiza is an exciting and attractive opportunity, but it carries with it complexities and potential risks if you do not have a lawyer to guide you through the buying process. A real estate lawyer in Ibiza is not only a legal professional but a trusted partner who safeguards and looks after your legal and fiscal interests.
