The Balearic government has raised the threshold for wealth tax from €700,000 to €3 million per person.
Property owners in Mallorca will benefit from this adjustment.
For example, a married couple with assets of up to €6 million are exempt from wealth tax.
This new regulation is one of many reasons why a further continuous increase in the value of real estate in Mallorca can be expected.
Other reasons include the strict restrictions on new builds and the limited supply for foreign buyers. 
The search by foreign buyers – of which Germans account for the largest share at 44% – now extends across the entire island, from the high-priced Port Andratx in the southwest to low-priced locations on the east coast such as Santayí and the up-and-coming Artà in the northeast. 
One result of this expansion of demand across the whole island will be that properties in the 200,000 to 500,000 euro range, which were previously rather inexpensive, will now experience a considerable increase in price and value.
So if you are planning to buy a property in this price segment on Mallorca, do it now.
This price segment is getting smaller and smaller and will soon disappear completely. 
However, demand for properties in the upper price segment above EUR 2 million will also continue to increase and drive prices steadily upwards.
Due to the already high price level in this segment, however, this development will be somewhat more moderate.
Will the increase in the value of Mallorca’s real estate continue?
