Buying property in Menorca
Why buy property in Menorca
Located in the Mediterranean Sea, Menorca (Minorca) is the smallest of the Balearic Islands. It has often been overshadowed by its neighbours, Ibiza and Mallorca. Menorca is a more chilled out, affordable version of the larger Balearic islands.
Menorca is a natural beauty. This isn’t just a matter of opinion, it’s been declared a UNESCO Biosphere Reserve. It boasts more sandy beaches than the other Balearic Islands put together. Some of these are well-facilitated with cafes, loungers and water sports. Others are a little trickier get to, but all the more beautiful (and unspoiled) once you get there. You can also explore Menorca’s natural beauty on foot. The Cami de Cavallas is a 185km walking trail that dates back to the 13th century. It will take you across valleys, farmland and wetland.
In recent years, Menorca has attracted holidaymakers looking for seaside bliss, but without the crowds found on the French Riviera, Corsica or other Mediterranean hotspots. Consequently, its culinary scene has developed significantly: think, feasting on delicious seafood from clifftop restaurants with panoramic sea views.
Menorca enjoys lengthy summers with August regularly experiencing 30°C heat. January is the chilliest with highs of 15°C and up to five hours of sunshine.
How to get to Menorca
During the summer, you can get a direct flight from UK and other European airports. Being so central in Europe, few flights take more than two and a half hours. Outside of the summer season, you will need to fly to a major Spanish airport (Madrid, Barcelona, Alicante) and then catch a domestic flight or a ferry to Menorca. From Menorca, the ferry to Mallorca is four hours, and to Ibiza, eight.
Where to buy property in Menorca
Mahón
Mahón (Maó in Catalan) is the capital of Menorca. Architectural remnants of Menorca’s colonial past have been retained, giving the city a distinct, old-fashioned feel. It is home to one of the longest natural harbours in the world. Mahón is a great spot for foodies, especially for hipster tastes. It is also great for wandering around galleries, museums and boutique shops. It is barely a ten-minute drive from the airport.
Ciutadella de Menorca
Located on the western side of the island, Ciutadella was once Menorca’s capital. Today, it has a fascinating history, especially in Es Born, where you’ll find historic buildings. The Cathedral of Ciutadella is a particular highlight. Ciutadella hosts two major festivals, Processo dels Tres Tocs in January, and in June, a celebration of the patron saint, Sant Joan.
Binibeca
Built in the 1970s, and with an appearance reckoned more Greek than Spanish, Binibeca is a collection of white-washed villas set on narrow streets in southeastern Menorca. Many of the properties are second homes, though some are still owned by locals. It has its own lovely beach of fine sands, Playa de Binibeca.
Fornells
Once a fishing village, then a landing site during British occupation in the 18th century, Fornells has now become an idyllic beach holiday spot. It is home to specialist seafood restaurants, water sports and chic shops.
Menorca’s property market
In Menorca, a small apartment, within easy reach of the beach, will cost you around €120,000. To purchase a similar one in Ibiza, you’d need €200,000. You can also find a lower priced family home. A typical townhouse in Menorca will cost you €300,000 – you would need close to €800,000 for the same in Ibiza. Property for sale in Menorca is also less expensive than Mallorca, though less drastically.
Is a property in Menorca a good investment?
In the Balearics, purchase tax for a resale property is levied at 8% of the purchase price, making it neither the most nor least tax efficient of Spain’s autonomous regions.
As tourism is a major part of the economy, holiday homes tend to be successful. Bear in mind the shorter season, however, when travel to the island becomes more complex.
While property prices in Menorca tend not to go up and up in the way that they do in Ibiza, the property market is still resilient. As Menorca shapes its identity as an alternative, eclectic holiday and second home destination, the property market is likely to strength.
Steps to buying a Menorca property
Search online: Determine what you can buy for your budget, as well as a list of features you would like in a home (penthouse, number of bedrooms, sea view).
Form a team of experts. Once you have chosen a handful of properties that tick your boxes, reach out to an estate agent. They will be able to talk through the area and what you are looking for in a home in greater detail. You will also need an English-speaking lawyer to ensure that the purchase is legally secure. Plus, a currency specialist like Smart Currency Exchange can help you to transfer your funds over to Menorca. You may also want to connect with a financial advisor and a mortgage specialist.
Book a viewing trip. Once you have your team in place, head out to Menorca to see your pick of properties. Then, if you find a home that ticks your boxes, then reconnect with your professional team and make an offer.
Once you have made an offer: If the seller accepts your offer, you will sign a reservation contract and pay a fee to take it off the market. While surveys are not the norm in Spain, many international buyers prefer to have one. Then, you will sign and pay the deposit, around 10% of the purchase price. As you’ve now committed to buying your dream Menorca home, lock in your exchange rate to ensure that you do not lose out on thousands. Meanwhile, your lawyer will contact the notary to ensure the legality of the sale.
Hold the keys in your hand: You will need to sign the sale contract, escritura pública at the notary’s office. Finally, pay the balance of the purchase price, minus the deposit you have paid. You must also pay the relevant taxes (ITP), stamp duty, notary fees and legal fees.