Information

Click on image to see further images.

 

When you make the decision to up sticks and move to a new country, one of the most important reasons to make the move will be your new standard of living.

When you are in your new country will you be able to afford the lifestyle you have become accustomed to? The island of Mallorca is slightly more expensive than the Spanish mainland, however if you shop around, you will find it comparable or cheaper than the UK.

No matter where you live on the Island whether you rent or buy a property there are standard running expenses which we have listed below. One of the main benefits with Mallorca is your heating bills will almost definitely be smaller than in the UK and with recent increases to electricity and gas charges in the UK, this is no small saving!

The cost of property on the island some say is expensive and the demise of the pound has not helped. For around 450,000 Euro you will be able to find yourself a luxury apartment with 3 bedrooms & various community pools located in a smart & secure community. The rental charge for the same property would average 1,000 Euro per month.

Urbanization Fees - These are fees payable to the community association. This fee pays for the maintenance of the common areas in your establishment which include, security, lighting and garden and pool maintenance. This fee can range from 400 euros to 600 euros per annum depending on the size of your property. This fee is based on a 200,000 euro property. You will also have a property tax which is based on the capital value and any income you receive from your property. Again for example purposes it would be 250 euros per year on the stated property. There is also a real estate tax known as an IBI which is payable to the local council of 200 euros a year. Annual standing charges for electricity and water have a set fee of 120 euros per annum and then you will pay your standard consumption rate.

To insure the property you will be surprised at how cheap property and contents insurance is. On the property we were able to find a quote of 260 euros per year.

As you can see the costing's are considerably cheaper, take into account you will only pay 350 euros on average per year to the council (council tax) you can understand why so many individuals decide to relocate as the average council tax bill in the UK is over £1200. The above is only a guideline it should not be taken as set figures, as fluctuations do occur in the exchange rate and obviously individuals will purchase different priced properties.

Now that the Euro is close to having the same value as the pound, you will find that most things have a similar price as the UK. There are a few big differences however such as cigarettes; which are 50% cheaper and wine / beer; which again can be much cheaper depending on the type you purchase.

Our advice is to work on the basis that prices in Mallorca are the same as the UK and you will not be too far out when making financial calculations about how much money you will need to meet monthly expenses.

 

---