Your seven days news round-up in Mallorca

A report at the weekend which suggested that Palma (and by extension Mallorca) had become like a metropolitan area of northern European cities such as Berlin and London could have been interpreted in different ways. Was it critical or was it positive?

A professor of geography at the University of the Balearic Islands, Jesús González, said that Palma and Mallorca have become a "metropolitan crown", attracting northern European second home owners. In the process, these owners have prompted a transformation, such as better quality restaurants. But they have also affected land and housing.

Pedro Fiol of the travel agencies association agreed that many people come to the island to spend the weekend, taking advantage of good air connections. While the UK has a comparatively low number of flights to Palma in January (187), Germany has 740. A German presence in this "metropolitan crown" is therefore the greatest and not only in the low season.

José Miguel Artieda of the API estate agencies association said that these foreign buyers are no longer necessarily looking for "hyper-luxury" and that since Covid there has been an increased trend in working remotely from Mallorca. There are now more foreigners who are part of the working population than used to be the case. Previously, they were predominantly people who had retired.

Tax deterrent for non-EU, non-resident home buyers

This report was well-timed in that it immediately preceded the big story of the week. On Monday, Prime Minister Sánchez announced a number of housing measures, one of which was a 100% tax on the value of homes bought by non-residents from non-EU countries. In other words, as an example, if the property is 500k, the tax will be 500k.

A clear deterrent, but the local property sector didn't believe it would make a great deal of difference to foreign buying in the Balearics, which is typically around a third of all purchases. The German market, the largest foreign-buying market (and by a fair distance), would obviously be unaffected. The British market, on the other hand, would be, as indeed would be nationals from other countries with some interest in the Balearics, e.g. Americans and Moroccans. With the Golden Visa (for investment of 500k and more) set to be scrapped, the tax burden would clearly impact certain nationalities, although it was pointed out that around half of purchases by British citizens are by individuals who have residency.

Political reaction included the opposition Partido Popular denouncing the tax as "xenophobic" and asserting that it wouldn't be introduced in regions under its control, e.g. the Balearics. It was also felt that Sánchez will have difficulty in passing the tax into law. So, it was a big story, but one that may prove not to have legs.

More luxury developments

In Palma, meanwhile, two stories did perhaps highlight issues that Sánchez had wished to address (as well as that metropolitan area report) as they concerned housing developments likely to be beyond the reach of most local people. The first concerned a project that British company Taylor Wimpey have for converting a rundown property on C. Manacor into what could be up to seven floors of apartments. There was no detail about this development, for which selling isn't scheduled to begin until the start of 2026, but a presumption was that the apartments won't qualify as being affordable housing.

The energy company Endesa has completed the sale of a plot in Palma's Nou Llevant district. Near to the GESA building, which the town hall has finally acquired from Endesa, the land cost 63 million euros. The buyers are two Barcelona-based investment firms. The plan is for 540 luxury apartments.

There was some critical comment along the lines of the authorities should ensure these developments for affordable or social housing. Which was all very well, but then the authorities (Palma Town Hall in both instances) would have to pay for the property and the land.

Conversion of a different type - obsolete hotels into social housing - is back on the agenda. The Mallorca Hoteliers Federation and the Forum for Civil Society are close to formalising an agreement to develop a so-called obsolescence index that will provide the framework for specifying establishments that could be converted into social housing for rent. The hoteliers say that it is "very clear" which establishments could be included. What isn't clear, as yet, is how this might work out in practice.

Squatters or not squatters?

It can at times seem almost inevitable that coincidental to news about housing developments are stories about squatting. There have been two such stories. One concerned around thirty squatters who had occupied the Sol y Mar Aparthotel in Cala Bona. Son Servera Police and the Guardia Civil were called in because of tension caused by the presence of an eviction company and by the changing of locks. The squatters, who included children, were said to have been "professionals", i.e. well versed in occupying buildings. They sought to convince the Guardia that they had been in the hotel for up to a month and were protected by Spanish law.

The other story was about the woman who had attracted publicity by carrying a sign advertising a Palma studio flat for sale at the Three Kings parade on January 5. It turned out that she was desperate to sell in order to move to China, where her husband and children now are, and because the flat has squatters - a mother and three daughters. The mother has since denounced the woman, Noemí Rotger, to the National Police. This was because of harassment, including the intrusiveness of the media who spent two days pursuing the story. It would appear that the mother had successfully got a court to declare her and her children as "vulnerable", a rental contract for the flat having been signed in 2022. Squatting law does afford certain protection to people who are classified as vulnerable; this is one of the criticisms of the law.

The controversial Saint Sebastian alternative

Three Kings having been and gone, Palma was preparing for the Sant Sebastià Fiestas. The big party night is always January 19. This is when the town hall organises concerts on various stages in the city's squares. There are four official, town hall stages this year. In addition, there will be two stages for alternative fiestas, one of these stages being for an event promoted by Podemos. This is to celebrate Sant SebastiàQ+. It is an LGBTIQ+ fiesta; Sebastian is a gay icon and long has been.

Controversy surrounding this event hasn't arisen for this reason. It is the publicity poster that has caused the row. This is graphic in its sexual content. The designer, Lluisa Febrer, has defended it, while main critics - Vox amongst them - have denounced it for being "a pathetic attempt to seek notoriety". Jorge Campos, the Vox deputy for the Balearics in Congress, petitioned a Palma court to order the withdrawal of the poster and the suspension of the fiesta, arguing it was clearly offensive to Catholics.

Withdrawals in the nautical world

A withdrawal is apparently occurring in the island's nautical world. According to the president of the ADNEA nautical businesses association, Alex Casares, "yachts are leaving Mallorca because of the high price of marinas". This especially affects boats between 15 and 30 metres. Owners of larger ones have no problem meeting the costs, which are said to have increased by up to 30%. There are complaints, and Casares says that companies "have no choice but to pass on costs in order to remain viable". So, are they leaving or are they staying and ramping up charges?

Another nautical story concerns the Palma-based Association of Mediterranean Sailors. A new president of this association was recently announced. Bartolomé Albons, the association explained, was among other things a very experienced participant in regattas. The problem surrounding his presidency related to other things, specifically the fact that he had been convicted of drugs smuggling offences over a period of almost thirty years from 1983.

These offences weren't lost on the media. Once highlighted, he said that he would leave it up to the association's board to decide if it wished to accept his resignation. This was accepted, leaving many to wonder how his appointment had come about in the first place. There was some sympathy for him. He insisted he was a reformed character, and it was clear he hadn't wished to be the subject of all the attention he and the association received.