Looking for a house in Spain: country estate with guest house in Ibiza

International real estate

The Balearic Islands archipelago was Spain's most visited province last year, with international buyers coming to compete for a variety of homes.

Published September 14, 2022, updated October 3, 2022

12-acre property in the heart of Ibiza

4.65 MILLION DOLLARS (4.6 MILLION EUR)

This six-bedroom home sits on more than 12 acres of wooded land 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 property in its portfolio. Thick stone walls help keep the house warm in winter and cool in summer.

The current owners, a family from Ibiza, gradually renovated the property over a decade, adding a swimming pool and guest quarters. The wooden ceiling beams were restored in the original style using Sabina, a valuable local timber that is now protected on the island and must be imported from the mainland for use in construction, Mr. Fisher said.

The house has a gated entrance with ample gravel parking and gardens. The main entrance is on the covered patio and opens to the dining room with tile flooring. An arch frames the adjacent living room with a fireplace and exposed stone walls.

The kitchen has another dining area, a wood-fired bread and pizza oven built into one wall and doors to the terrace.

A short staircase leads to three bedrooms with tiled flooring, traditional wooden shutters on the windows and en-suite bathrooms. One of them has a covered terrace.

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

G Mr. Fisher said the property has an official tourist rental license, allowing the owners to offer it for short-term rentals. This is especially valuable given that the Balearic Islands government this year imposed a four-year ban on issuing new rental licenses. According to Mr. Fischer, the property fetches up to 1,800 euros a day in high season.

The house is located roughly midway between the small village of San Rafael, known for its ceramics workshops and proximity to the famous Amnesia nightclub, and Santa Gertrudis, a popular destination thanks to its wide range of restaurants, bars and stores. Ibiza Airport is 15 minutes away.

Market Overview

The Balearic Islands archipelago - which includes the islands of Mallorca, Minorca, Ibiza and Formentera - was Spain's most visited province last year, attracting around 6.3 million international visitors, as indicated by the Engel & Völkers market report. In Ibiza, those visitors are increasingly affluent.

The island, about 90 miles east of Valencia and Spain's east coast, has long attracted artists, musicians and celebrities; British singer Dua Lipa made a sensation when she celebrated her 27th birthday there last month. The coronavirus pandemic and the ability to work remotely has led to an invasion of even more wealth, which keeps prices rising. Private air traffic at Ibiza Airport grew by almost 27 percent in 2021 compared to the previous year, according to a report by Engel & V

"It's safe to say that prices have increased by about 10 percent on average and sales volumes have increased by 20 percent compared to 2021," said Anna Bettcher, product and marketing manager at Prestige Properties Ibiza.

The most popular sale prices are currently between 3 and 5 million euros, and sales between 10 and 12 million euros are not uncommon, said Jorge Calvo, sales and acquisition manager at Estela Exclusive Homes, an affiliate of Christie's International Real Estate. (The euro, which has fallen to its lowest level in recent years, is now exchanged at about the same rate as the U.S. dollar.)

The south coast of Ibiza, especially San Jose and the cliff-top village of Es Cubells, is renowned for "luxury, glitz and glamour," said Charlie Hill, co-owner of Charles Marlow, a boutique real estate agency specializing in properties worth more than 7 million euros.

"The north is traditionally more rural and wild, a bit more subdued," Mr. Hill said, though he added that the recent opening of the Six Senses luxury resort there, near Harakka Bay, has expanded the map for luxury lovers.

Less affluent buyers can still find a small apartment for 350,000 euros in the ancient fortified town of Dalt Vila, near Ibiza, Mr.

"We have a strong demand for country plots in the center and north of the island with the onset of the pandemic," he said. "People are looking for big houses where the family can gather to spend their vacations. "

Sustainability, one of the motivations behind the ban on new rental licenses, is increasingly attracting the attention of the Balearic Islands government. In Ibiza, the Ibiza Conservation Foundation is working on a number of issues including eliminating plastic use, supporting local food and promoting marine conservation.

Who buys in Ibiza

Germans made up the largest share of buyers in Ibiza last year, closely followed by buyers from Spain, according to Mr. Fischer. In addition, "people from 15 to 20 countries buy here every year," he said. "They're mostly Europeans, but there are more Americans every year. I've never heard so many Americans on the island as I have this year. "

Buyers with business connections in London have long been commonplace, but the New York connection is growing stronger, Mr. Hill said. "Almost every week I meet someone from New York or with connections there. "

The basics of buying

Foreign buyers from outside the European Union need a military permit to buy property in the Balearic Islands in rural areas. The process can take a long time, one to three months, Mr. Fisher said. Buyers who are not Spanish citizens must also obtain a foreign identification number, or N.I.E. A lawyer usually handles the transaction; the commission is about 1 percent of the purchase price.

The agent's commission, which is paid by the seller, is usually 5 percent, Ms. Bettcher said. Foreign buyers have access to mortgages that require a real estate appraisal.

Websites

Tourism in Ibiza: ibiza.travel

Ibiza Conservation Fund: ibizapreservation.org

The Balearic Islands Government: portsdebalears.com

Languages and currency

Catalan, Spanish; Euro (€1 = $1.01)

Taxes and fees

The resale tax on real estate is calculated on a complex scale based on the sale price. The tax starts at 8 percent for the first 400,000 euros and goes up to 11 percent for any amount over 1 million euros.

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

The annual property taxes on this house are €1,900, Mr. Fischer said.

Contact

Natalie Konzen, Engel & Völkers Ibiza, 011-34-971-311-336; engelvoelkers.com

For weekly email updates on residential real estate news, subscribe here.