Embarking on the Exciting Journey of Off-Plan Property Purchase in Baleares Islands: Formentera, Ibiza, Mallorca, Menorca

Embarking on the Exciting Journey of Off-Plan Property Purchase in on of your favourite islands: Formentera, Ibiza, Mallorca, Menorca.

1. Safeguarding Your Investment:

  • It’s smart to wonder what happens to your deposit if the developer faces financial issues. To add an extra layer of protection, ask for a bank guarantee. This ensures you still have access to your funds even if the developer goes bankrupt, though that’s quite rare these days.

2. Market Ups and Downs:

  • Ever thought about what happens if the property value drops after you’ve committed? It’s a valid concern. Have a heart-to-heart with your lender about how this could affect your mortgage, especially if you can switch it from the developer. Communication is key here.

3. Benefits Galore:

  • Why consider buying off-plan? Well, for starters, the price is often lower than existing properties, and there are usually attractive payment plans. Plus, the property‘s value often goes up during construction, giving you a head start on making a profit before even moving in.

4. Your Deposit and Security:

  • Wondering about the deposit? Typically, it’s between 10% and 30% of the property‘s value. Good news – it’s secured in a holding account with a bank guarantee. Even if the developer breaks the contract (unlikely!), your money is safe.

5. Reality Check:

  • Here’s the scoop: your property might not look exactly like the glossy brochure, but it’ll be close. You’ll get a list of what’s included and a chance for a HORIZEN Properties specialist to check for any issues before you move in.

6. Perfect Timing:

  • When’s the best time to buy off-plan? Well, the sooner, the better. Waiting might mean missing out or getting priced out. It’s about grabbing the opportunity when you can swing it financially.

7. What’s in the Price?:

  • What you see might not be all you get. Check what’s included in the price and what might cost you extra. Sometimes, fixtures or landscaping can sneak in as additional charges. Knowing this upfront helps you budget like a pro.

8. Sneak Peek Before Finalizing:

  • Before you commit, it’s crucial to give your future property a once-over. You can do it yourself, get a surveyor, or let HORIZEN Properties handle it. Making sure everything’s in order before you finalize is a smart move.

9. Lawyer Choices:

  • You don’t have to use the developer‘s lawyer, no matter what they say. Choose someone you’re comfortable with. It might not save you money or speed up the process as much as they claim.

10. Safety First:
Buying off-plan is generally safer than other investments. Still, do your homework. It’s all about staying within your means for the safest property investment.

11. Payment Security:
– Trusting your money with a reputable developer? They should have a plan for handling your payments during construction. Ask questions to ensure your money is in good hands.

12. Rental Yields in Ibiza:
– Thinking about the long-term rental game? Ibiza offers a healthy 3%-5% yield. If you want specifics, HORIZEN Properties can crunch the numbers for your chosen development.

13. Short-Term Rental Fun:
– Considering renting out your place short-term? Check out the rules, especially the need for a tourist license. Without one, you can still do long-term rentals, just without the Airbnb buzz.

In the labyrinth of Baleares‘ property market, your questions are the guiding light. Feel free to reach out to HORIZEN Properties anytime. Let’s make sure your journey to your second home is not just safe but a downright joy!


In the dynamic legal landscape of Ibiza, this interpretation is not exhaustive legal advice. It serves as a guide and doesn’t substitute the expertise of a lawyer. Always consult legal professionals for precise insights.

Embark on your fiscal journey in Ibiza with clarity, ensuring your property is not just a haven but a financially sound investment.

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