How to Buy a Property in Menorca, Spain: A Foreigner’s Guide

Buying property in Menorca, Spain, is an exceptional life investment. Owning a house on this beautiful Balearic Island – with its stunning beaches and relaxed lifestyle – is an opportunity that’s worth experiencing. 

You qualify for long-term residency when you make a minimum investment of €500,000 in any property.

Like the rest of Spain, the property market in Menorca also had its ups and downs. While the economy makes sales fluctuate, the long-term appreciation is always steady, thanks to the permanent attractiveness of the island.

In this guide, we will lead you through the following:

• Why Menorca is Great for Property Investment
• How to Buy Property There
• What to Expect with Regard to Property Taxation

Why Purchase a Home in Menorca?

See why Menorca differs from its larger Balearic cousins, like Mallorca and Ibiza:

Golden Visa Eligibility

Investing €500,000 or over in Menorcan real estate grants access to Spain’s highly desirable Golden Visa program, offering long-term residency and visa-free travel across the Schengen Area.

Year-Round Natural Beauty

Expect to find:

• Beautiful Mediterranean Climate
• Over 300 Sunny Days in the Whole Year
• Mild Winters 
• Warm Breezy Summers

A High Level of Living Standards

Menorca is ideal for a relaxed, family lifestyle; though cheaper than the rest of Spain or Europe, it boasts very good infrastructure and health services.

Prime Letting Opportunities

The large number of tourists visiting Menorca ensures, especially during the summer period, that rental property demand is there – something very reliable for investors.

Affordable Housing Options

Compared to Ibiza or Mallorca, the properties in Menorca are moderately inexpensive while offering similar advantages. From historic town houses to modern villas, rural fincas – each offers something different.

A Paradise Preserved

UNESCO Biosphere Reserve status ensures that the natural beauty of Menorca is protected; its style of going green adds value from both the nature lover’s and the long-term investor’s perspective.

Excellent Connectivity

Although tranquil, Menorca has links to most European capitals through Mahón Airport for the comfort of an international clientele.

Can Foreigners Buy Property in Menorca?

The answer is yes, Brits, along with all foreigners, can purchase property in Menorca, and there are no restrictions. Spanish law is friendly toward foreign ownership, including a Golden Visa. 

Many British buyers are drawn to Menorca for the following reasons:

• Slower Pace of Life
• Scenic Coastal Towns
• Welcoming Culture

The process is straightforward: you’ll need to obtain a Spanish NIE (tax identification number) and open a local bank account to handle transactions. Although mortgages are available to non-residents, securing one typically requires a larger deposit compared to Spanish residents.

Finding a House in Menorca

The Menorcan property market can boast everything from rustic country houses to villas on the waterfront in the most exclusive locations. Be it a holiday retreat or primary residence, whatever the need there will be a property in tune with every taste. 

Preferred areas include Mahón, with its lively harbour capital; Ciutadella, for historic ambiance; and more.

Top websites to search for Menorcan real estate:

• Fotocasa

• Idealista

• Kyero

Similarly, when selecting a property, seek to deal with local agents who know the market inside out. While international buyers may be successful with agencies specialising in expat purchases, it is always best to see possible properties in person.

Upscore’s Benefits

Upscore’s Finance Passport makes buying a property in Menorca easy with professional support tailored for you:

Mortgage Options: Compare several options of mortgages from different prestigious local lenders for better mortgage financing.

Remote Application: Initiate an online mortgage application from any part of the world.

Personalised Service: From finding the right property to finalising your loan, an assigned agent will see you through it all.

Free to Use: You will not be required to pay to use Upscore’s service. We only get a fee from a lender if you get a mortgage.

FAQs

How Much is the Property Tax in Menorca?

The purchase of a house in Menorca has a transfer tax ranging from 6-10% of the sale price, plus 10% VAT on new constructions, and a notary and registry fee of about 1% to 2%.

Is it Possible to Let My Property in Menorca?

Of course, Menorca is a popular tourist destination, and short-term lets command excellent returns. You may want a tourist license for these purposes in order to rent your house legally.

Is There Finance Available to Non-Residents Buying Property in Menorca?

Yes, it is possible for non-residents to apply, with most lenders requiring a larger down payment, normally in the region of 30-40% of the value.

How Long Does it Take to Buy Something in Menorca?

The general rule would be that, depending on the complexity of the transaction and/or whether financing is involved, it usually takes from 1 to 3 months after finding the property.

Can a Foreigner Not Buy a Rural Property?

No, foreigners can buy rural properties in Menorca, but certain agricultural or protected lands may be controlled concerning their use.