Buying a second home or vacation home in Ibiza

Ibiza Now Real Estate · Second Home Guide 2026

Buying a Second Home
or Holiday Villa in Ibiza

Everything you need to know about owning a second home in Ibiza — from the practical and financial to the things you simply would not think of until you are already on the island.

Updated June 2026

Applies to Second home & holiday property buyers

By Ibiza Now Real Estate

Additional purchase costs

9–14%

On top of the purchase price

Annual ownership costs (mid-range villa)

€15–40k

IBI, IRNR, insurance, maintenance

Tourist rental licences

Moratorium

No new ETV licences since 2022

Why Ibiza

More than a holiday destination

Ibiza is known for its freedom, its climate, its nature and a quality of life that is genuinely difficult to find anywhere else in Europe. Whether you come for the beaches, the villages, the food, the community or simply the light — the island has a way of becoming a place you want to return to, year after year.

If you regularly holiday in Ibiza, there is a point where ownership makes both financial and emotional sense. Instead of renting a different property every summer, you have your own place — your own terrace, your own pool, your own piece of the island. And unlike most holiday destinations, Ibiza property has consistently held and increased in value over time.

“The happiest second-home owners we work with are those who bought for the love of the island first, and the investment case second. The two tend to go hand in hand on Ibiza — but the lifestyle has to come first.”

Which Area Suits You?

Ibiza’s five municipalities — and what each offers

Ibiza covers five municipalities, each with a completely different character. Choosing the right area is one of the most important decisions you will make — more important, in many cases, than the property itself.

Municipality	Character	Best for
Ibiza Town (Eivissa)	Urban, cosmopolitan, historic	Proximity, culture, restaurants, marina
Santa Eulària des Riu	Family-friendly, year-round, relaxed	Families, digital nomads, year-round living
Sant Josep de sa Talaia	Luxury, privacy, sunset views	HNW buyers, seclusion, best beaches
Sant Antoni de Portmany	Emerging, west coast, sunsets	Value, investment upside, younger buyers
Sant Joan de Labritja	Rural, authentic, bohemian	Peace, finca lifestyle, off-grid living

Within these municipalities, specific villages and zones matter enormously. Santa Gertrudis (interior), Jesús (near Ibiza Town), Es Cubells (south coast) and San Carlos (north) each have their own loyal following. We always recommend spending time in different areas — ideally outside peak summer — before committing to a zone. For a full breakdown of prices and character by area, see our Neighbourhood Guide 2026.

What Type of Property?

Villa, finca, apartment or townhouse

VillaThe most sought-after second home on Ibiza — typically modern or contemporary, with pool, garden and privacy. Wide range from €800,000 to €10M+. Best for families and buyers who want outdoor space and a sense of permanence.

FincaTraditional rural farmhouse — often on large plots with mature gardens, stone walls and authentic Ibicenco character. Requires more maintenance than a villa but offers incomparable atmosphere. From €700,000 upward.

ApartmentMore accessible entry point, lower maintenance, often in or near Ibiza Town or Santa Eulària. Good for buyers who visit for shorter periods and prefer urban convenience. From €250,000 for a studio to €2M+ for a penthouse.

TownhouseThe best of both worlds for many buyers — private entrance, small garden or terrace, typically in a village or urbanisation. Good community feel and lower maintenance than a full villa. From €400,000.

The Essentials — Before You Buy

What you need in place before you start

NIE number

A Spanish NIE (Número de Identificación de Extranjero) is mandatory for all foreign buyers — without one you cannot purchase, open a bank account or pay taxes in Spain. Apply at the Spanish consulate in your home country or at a national police station in Ibiza. Allow 2–6 weeks. Cost: €10–€20.

Spanish bank account

Required for the notarial payment (certified bank cheque), utility direct debits and annual tax payments. Any major Spanish bank will open one for you with your NIE and passport. CaixaBank’s HolaBank and Santander’s Mundo service are both set up for international clients.

Independent local lawyer

Appoint a lawyer based in Ibiza before you make an offer — not after. They check ownership titles, planning permits, illegal extensions, outstanding debts and community fee arrears. Cost: 0.5–1% of purchase price. Non-negotiable.

Clear budget — including all costs

Budget 9–14% on top of the purchase price for taxes, notary, legal fees and registration. On a €900,000 property that means €80,000–€125,000 in additional costs. Full breakdown in our Cost & Tax Guide.

Renting It Out — The 2026 Reality

What you can and cannot do with your second home

Many second-home buyers arrive with the idea that they can offset ownership costs by renting the property out during the summer. This is possible — but the regulatory situation in 2026 is significantly more restrictive than it was a few years ago, and it is essential to understand it before you buy.

No new tourist rental licences — moratorium in force indefinitely

Since February 2022, no new ETV (Estancia Turística Vacacional) licences are being issued anywhere in Ibiza or the Balearic Islands. This moratorium was extended indefinitely in May 2024. If you want to legally rent short-term to tourists, the property must already hold a valid, transferable ETV licence. Properties with licences command a premium of €50,000–€150,000 over comparable unlicensed properties.

Rental type	Licence required?	Notes
Holiday rental (days / weeks)	Yes — valid ETV number	Moratorium — no new licences. Must also register VUD ID (mandatory since July 2025)
Medium-term (1–11 months)	No licence required	Standard rental contract — no tourist services
Long-term annual rental	No licence required	Governed by Spanish rental law (LAU)

If the property you are viewing is advertised as having a tourist rental licence, always verify the ETV number directly at registreturistic.conselldeivissa.es before agreeing a price. Also check the community of owners’ minutes — since April 2025, a 60% majority of owners in an apartment building can ban tourist rentals even for existing licence holders.

Annual Costs

What it costs to own — beyond the purchase

A second home in Ibiza is not a passive investment. Here is a realistic picture of recurring annual costs for a mid-range villa (€900,000–€1,500,000):

Cost	Typical annual amount	Notes
Property tax (IBI)	€800 – €3,000	Based on cadastral value — well below market value
Non-resident income tax (IRNR)	€300 – €1,500	Imputed income if unrented — 19% (EU) on 1.1% of cadastral value
Buildings insurance	€600 – €2,000	Higher for rural properties and larger plots
Community fees	€800 – €4,000	If in an urbanisation — covers shared areas and pool
Pool & garden maintenance	€3,000 – €8,000	More for larger plots and pools
Caretaker / property manager

€1,500 – €5,000 Essential for non-resident owners Utilities (when in use) €2,000 – €6,000 Electricity bills high in summer (air conditioning) Wealth tax (Patrimonio) VariesApplies above €167,129 net assets in Spain Realistic total €10,000 – €30,000+/year Before any renovation or furnishing

Practical Matters

The things nobody thinks of until they own

Getting a car on the islandHaving a car in Ibiza is essential — public transport is limited outside Ibiza Town. You can bring a car from the EU (ferry from Barcelona, Valencia or Denia), but after 12 months of residence it must be re-registered with Spanish plates. Alternatively, buy locally or on the mainland and ship it over. Check the ITV (Spanish MOT) validity when buying a used car in Spain.

Hiring a caretakerIf you spend less than six months per year on the island, a local caretaker is not a luxury — it is a necessity. They manage regular checks, coordinate maintenance, deal with issues before they become expensive, and look after the garden and pool between visits. We can connect you with reliable caretakers on the island.

Furnishing your propertyIbiza has developed a strong interior design scene. The island’s signature style blends Mediterranean lightness with natural materials, linen, terracotta and hand-crafted detail. Ibiza Town and Santa Gertrudis have excellent furniture shops; there are also skilled local interior designers who work to a range of budgets. We are happy to share recommendations.

Gestoría — your administrative allyA gestoría is a Spanish administrative professional who handles official paperwork: tax filings, utility registrations, permit applications, vehicle registration and more. For non-Spanish speakers or non-residents, a good gestoría saves significant time and avoids costly mistakes. Ask us for a recommendation.

Bringing pets to IbizaYou can bring pets from EU countries — they need a microchip, up-to-date vaccinations and an EU pet passport. Airlines including Vueling and Transavia allow one pet per ticket in cabin (check weight limits). Only a limited number of pets are permitted per flight, so book well in advance.

Electricity and waterElectricity bills in Ibiza can be substantially higher than northern Europe, particularly in summer with air conditioning. Water supply on the island is a genuine concern — many rural properties rely on wells or purchased water. Ask specifically about water supply and costs before purchasing any rural property.

Tax Summary

Key taxes for second home owners in 2026

As a non-resident second home owner in Ibiza, your main annual tax obligations are:

IRNR — non-resident income taxEven if you never rent your property, you owe annual tax on a notional imputed income (1.1% of cadastral value for most Ibiza properties). EU residents: 19%. Non-EU residents: 24%. Filed via Modelo 210, deadline 31 December.

IBI — property taxAnnual municipal tax based on cadastral value. Paid directly to your local Town Hall. Typically €800–€3,000/year for a mid-range property. Your gestoría or bank can set up direct debit.

Wealth tax (Patrimonio)Annual tax on net assets in Spain above €167,129. Rates from 0.2% to 2.5%. Filed via Modelo 714 before 30 June. Above a certain threshold this becomes a meaningful annual cost — factor it into your ownership budget.

Capital gains on future saleWhen you eventually sell, capital gains tax applies to the profit. For EU non-residents: 19% on gains up to €6,000, then progressively up to 28%. Keep all invoices for purchase costs, legal fees and renovation work — these reduce your taxable gain.

For a full explanation of all taxes, see our Spanish Income Tax Guide for Non-Residents.

Thinking about your own
place on Ibiza?

We have been helping people find their second home on this island for over a decade. Whether you are just starting to explore or ready to move forward, we are happy to talk through what is right for your situation.

Speak with our team →