Home Business House Hunting in Spain: Updated Finca with guesthouse in Ibiza

House Hunting in Spain: Updated Finca with guesthouse in Ibiza

by SuperiorInvest

This six-room country house it sits on more than 12 wooded acres on a dirt road in the center of Ibiza, one of Spain’s Balearic Islands in the Mediterranean Sea.

The original house, built in the traditional Spanish finca style, probably dates back several hundred years, said Florian Fischer, managing partner of Engel & Völkers Ibiza, which has the listing. Thick stone walls help keep the house warm in winter and cool in summer.

The current owners, a family from Ibiza, have gradually renovated the property over ten years, adding a swimming pool and guest accommodation. The wooden ceiling beams were restored to their original style using Sabina, a prized local hardwood that is now under protection on the island and must be imported from the mainland for use in construction, Mr. Fischer said.

The house has a closed entrance with a spacious gravel parking lot and a garden. The main entrance is on a covered terrace and opens into a tiled dining area. An archway frames the adjacent living room with fireplace and exposed stone walls.

In the kitchen there is another dining area, a wood-fired bread and pizza oven built into one wall and a door to the terrace.

Up a short flight of stairs are three bedrooms, all with tiled floors, traditional wooden windows and en-suite bathrooms. One has a covered terrace.

The guest suite, connected to the main building but with its own entrance, has a fourth bedroom and bathroom. The guest house across the front entrance also has a covered terrace and two more bedrooms with baths. The heated swimming pool next to the front terrace is surrounded by a large stone terrace.

Mr Fischer said the property comes with an official tourism licence, which authorizes the owner to offer it for short-term rental. This is particularly valuable given that the Balearic Government has introduced a four-year ban on new rental licenses this year. The property fetches up to 1,800 euros a night during high season, he said.

The house is about halfway between the small village of San Rafael, famous for its ceramic workshops and proximity to the famous Amnesia nightclub, and Santa Gertrudis, popular for its wide selection of restaurants, bars and shops. Ibiza Airport is about a 15 minute drive.

The Balearic Islands archipelago, which includes the islands of Mallorca, Menorca, Ibiza and Formentera, was Spain’s most visited province last year, attracting about 6.3 million international visitors, the report said. market report by Engel & Völkers. In Ibiza, these visitors are getting richer.

The island, about 90 miles east of Valencia and the east coast of Spain, has long attracted artists, musicians and celebrities; British pop singer Dua Lipa made a splash she celebrated her 27th birthday there last month. The coronavirus pandemic and the ability to work remotely has led to an influx of even more wealth, driving up prices. According to a report by Engel & Völkers, private jet traffic at Ibiza Airport increased by almost 27 percent in 2021 compared to the previous year.

“It is very safe to say that prices have increased by an average of 10 percent and sales numbers have increased by 20 percent compared to 2021,” said Anna Böttcher, the company’s product and marketing manager Prestige Properties Ibiza.

The most popular sales are currently in the €3 million to €5 million range, and sales of €10 million to €12 million are not uncommon, said Jorge Calvo, sales and acquisitions manager at Estela Exclusive Homes, an affiliate of Christie’s International Real Estate. (The euro, which has fallen to its lowest level in years, is currently trading at roughly the same rate as the US dollar.)

Ibiza’s south coast, particularly San José and the cliff-top village of Es Cubells, is known for its “luxury, glitz and glamour,” said Charlie Hill, co-owner of Charles Marlow, a boutique real estate firm specializing in properties over €7 million.

“Traditionally the north is more rural and wild, a bit more low-key,” Mr Hill said, although he added that the recent opening of the Six Senses luxury resort there, near Xarraca Bay, has expanded the map for luxury travellers.

Less well-off buyers can still find a small apartment for as little as €350,000 in the ancient walled town of Dalt Vila near Ibiza Town, Mr Fischer said, while a house with a pool anywhere on the island starts at around €1.5 million.

“Since the pandemic, we have had higher demand for rural properties in the center and north of the island,” he said. “People are looking for big houses where the family can get together and spend the holidays.”

Sustainability – one of the motivations for banning new rental licenses – is increasingly a focus of the Balearic government. In Ibiza, the Ibiza Preservation Fund works on a range of issues, including eliminating the use of plastic, supporting local food producers and supporting marine conservation.

Germans accounted for the largest share of buyers in Ibiza last year, closely followed by Spanish buyers, Fischer said. In addition, “there are 15 to 20 nationalities of buyers every year,” he said. “They are mainly Europeans, but there are more and more Americans. I have never heard so many Americans on the island as this year.’

Buyers with business links to London have long been common, but the New York connection is increasing, Mr Hill said: “Almost every week I come into contact with someone either from New York or with links there.”

Foreign buyers from outside the European Union must secure a military permit for Balearic properties in rural areas. The process can be time-consuming, taking one to three months, Mr. Fischer said.

Buyers who are not Spanish citizens must also obtain a foreign identification number, or NIE The transaction is usually handled by a lawyer; the fee is around 1 percent of the purchase price.

The agent’s commission paid by the seller is typically 5 percent, Ms. Böttcher said. Mortgages are available to foreign buyers who must have the property appraised in order to obtain a loan.

Catalan, Spanish; euro (1 euro = 1.01 USD)

The real estate transfer tax on resale is variable based on the sale price. The tax starts at 8 percent for the first €400,000 and rises to 11 percent on any amount above €1 million.

If the property is new, the buyer will pay 10 percent value added tax and 1.5 percent stamp duty instead.

The annual property tax on this house is €1,900, Mr Fischer said.

Nathalie Conzen, Engel & Völkers Ibiza, 011-34-971-311-336; engelvoelkers.com

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