Buying

Before Buying

Its very important to know something about the island when considering purchasing property in Formentera.  It helps having some local knowledge and having visited several times and in different months in the year.

The summer months can be quite different to the winter months.  Although the island has a favourable climate throughout the year, once the holiday season finishes at the end of October, many shops, bars, restaurants and services close and Formentera changes very much in character.Formentera has very little land that can be bought and built on.  It has a population around 8,000, and there are only 2,000 registered houses, this coupled with the fact that it is such a beautiful and tranquil place creates high demand for property.  Indeed most of the island is declared National Park.

Many homes are also locally owned and do not come on the market. Much of the property for sale on the island is German or French owned, although people of many different nationalities including increasing numbers of mainland Spaniards now seek property for investment.

There are restrictions on the style and design of buildings should land be acquired, and land owned on the coast can now not be built on due to building regulations.  These factors have preserved the islands natural charm, and made it an incredibly desirable place both to live and to holiday.

The quality of property on Formentera is very high for all these reasons and there are no over sized modern ‘estate’ developments or over-urbanised areas.  Every house has its own unique history and character.

Other Factors to Consider

There are a number of other logistical factors to consider which buying property in Formentera including the following:-

• Some homes have cisterns as a water source, and these may need refilling during periods of low rainfall.  Some homes have natural water wells or 'pozos', which may be slightly salinated, or may dry up in periods of very low rainfall.

• Some homes have no grid-electricity and rely on solar power or generators.

• Access roads can sometimes pose problems for some vehicles.

Rental Potential

All properties have the potential to be let during the summer season.  There is especially high demand in the months of July and August.  Rental incomes can vary from between €5000 to €9000 depending on the specification of the property.

Buying Property

After choosing a property- an option to buy contract is drawn up.  This is a contract made at the beginning of the property buying process which includes the outlay by both parties of a 10% deposit.  The document includes a description of the buyer and seller, passport numbers, NIF or NIE numbers, status as either a business venture, private purchase or as married couple.

A date for completion is agreed by both parties usually some weeks ahead.  It is important that any costs or loans secured against the property are made known and cleared up so that it is free from such costs or debts.  If either party wishes to withdraw from the sale after this point the deposit is normally lost plus interest.  This does however avoid ‘gazumping’ or speculation.

Property Tax

It is important to bear in mind that all properties are subject to 7% tax on the day of purchase.  There is also a registration fee of the new property and a notary (solicitors) fee for the preparation of deeds and documents.  Allow € 5000 for these extra costs as a guide, but we can help you in understanding this process.

NIF or NIE Number

This is like a national identification number and all parties must have one of these before signing the option to buy contract.  This can be obtained from the ‘Gestoria’ who will apply for your NIF or NIE number locally for a fee of about € 300.  Alternatively this can be done through the Spanish consulate in the UK.  This should be the first thing you do when you start looking for a house.  It costs approximately € 120/ person if you do this independently.

Mortgage Requirements

A bank will provide a resident or non-UK resident with up to 80% mortgage over 25 years or over, providing monthly payments can be met.  The Euro interest rate is typically lower than that of the UK.  Life insurance and property insurance is included in the monthly mortgage repayment.

The Service Provided by Astbury Formentera

We have a large database of properties that you can view on line, or request to be sent.  If you describe to us the kind of property that you are searching for, we can help narrow down your search.

We provide a service which involves:-

• Understanding your requirements and preferred locations.

• Collating the details of suitable properties and forwarding to you the information about these, photos etc.

• Helping you arrange your flights, accommodation and transfers to the island should you wish to view any properties.

• Meeting you on the island, arranging property viewings for you and showing you around the properties. 

• We can provide a wealth of local information and advice concerning your purchase, and consider and pre-contract specifications.

• Helping arrange meetings with a lawyer, bank manager and attending the signing of any documents with you including the Option to Buy Contract.

• We will help guide you through the process in a secure and legal way.

Building your own property in Formentera

In order to build your own property in Formentera about 35,000 m2 of land are required. This is because building regulations are very strict in order to preserve the natural beauty of the island. The price of land can vary depending on location, but land can cost around €36/m2 as an average.  Building materials are also slightly more expensive mainland prices. Therefore to build on virgin land can be quite costly. However, choosing the right piece of land and with the correct project management,  it is possible to build new property and add significant value.

Formentera has become increasingly popular especially during the summer months in recent years. It has to be one of the top five most beautiful locations in Europe. It is surrounded by peaceful, crystal clear water and the beaches are indescribably unique.

From time to time the island is associated with various celebrities through a few poorly written magazines, newspaper articles and web-site commentary. Reporters seeking such stories though have so often failed spectacularly in their attempt to convey the spirit of Formentera through their journal.

The Property Owning Population of Formentera

Only discerning British holiday makers travel to Formentera. There are no English style pubs, and there is no main stream English societal association. People who live on and regularly travel to Formentera do so because they have fallen in love with the island and not because they want to spend time with many other English people.

Fomentera is seldom advertised in the mainstream press which is mainly due to its size (at only 85 km2), popularly less significant, but culturally markedly significant and very different from any other island in Europe.

Those that buy here usually have fallen in love with the place many years ago probably as tourists. A surprising number of British-owned houses were bought in the 60s and 70s. Few owners spend the whole year in Formentera as there is a great contrast between the winter and summer months.

Although the winters are generally warm, sunny and beautiful, the inhabitant population falls sharply and tourism stops almost completely by the first week of November. Walking, cycling, painting, photography, reading as well as a great number of other past times are common place in the winter as life really does completely change. Locals are left to enjoy the deserted beaches, clear blue skies, amazing light not to mention empty roads.

Connections to Formentera

It is easy to get to Formentera in the winter or the summer. Charter, schedule and budget airlines fly regularly to Ibiza during the summer months (May to October) from most major UK airports. Winter air travel necessitates a journey via mainland connections such as Barcelona as there are no direct UK flights to Ibiza. There are also good connections into and out of Ibiza via the larger Balearic island of Majorca. We can provide you with a list of all UK airports and corresponding flight operations to Ibiza.