Costs & Taxes when buying or selling property on Ibiza
Costs & Taxes When Buying
or Selling Property on Ibiza
A complete overview of every cost and tax involved in buying or selling property in Ibiza — current 2026 rates, worked examples and practical advice for international buyers and sellers.
Budget 10–14% on top of the purchase price
Buying property in Ibiza involves significantly more than the purchase price alone. As a rule of thumb: budget 9–10% extra for a mid-market resale property, 13–14% for a luxury property above €1 million, and 11.5–12% for new build. This guide explains exactly which costs are paid when, by whom, and how to calculate them correctly.
“The most common mistake is applying the highest tax rate to the full purchase price. ITP in the Balearics works progressively per bracket — like income tax. You pay 8% on the first €400,000, 9% on the next portion, and so on.”
1. Transfer Tax (ITP)
When purchasing an existing property from a private seller, the buyer pays ITP (Impuesto sobre Transmisiones Patrimoniales). The Balearic Islands apply a progressive rate per bracket:
| Purchase price bracket | Rate |
|---|---|
| Up to €400,000 | 8% |
| €400,001 – €600,000 | 9% |
| €600,001 – €1,000,000 | 10% |
| €1,000,001 – €2,000,000 | 12% |
| Above €2,000,000 | 13% |
First €400,000 × 8% = €32,000
Next €200,000 (to €600,000) × 9% = €18,000
Next €400,000 (to €1,000,000) × 10% = €40,000
Remaining €500,000 × 12% = €60,000
Total ITP: €150,000 (effective rate: 10%)
ITP must be paid within 30 working days of signing the notarial deed, via Modelo 600 with the Balearic Tax Agency (ATIB).
2. VAT (IVA) and Stamp Duty (AJD)
When purchasing a new build from a developer, no ITP is paid. Instead:
| Tax | Rate | Notes |
|---|---|---|
| VAT (IVA) | 10% | Standard residential properties |
| VAT (IVA) | 21% | Land and commercial property |
| Stamp Duty (AJD) | 1.2% | Standard — on the purchase price |
| Stamp Duty (AJD) luxury | 2% | New build above €1,000,000 — Balearic specific |
VAT (IVA) 10%: €150,000
Stamp Duty (AJD) 2% (luxury): €30,000
Total taxes: €180,000 (12% of purchase price)
3. Notary, land registry and legal fees
| Cost | Amount | Notes |
|---|---|---|
| Notary fees | €600 – €2,000 | Depends on purchase price and deed complexity |
| Land registry (Registro de la Propiedad) | ~1% of purchase price | Must be completed within 2 months of completion |
| Legal fees (lawyer) | 0.5–1% of purchase price | Strongly recommended — checks ownership, permits, debts |
| NIE application | €10–€20 | Required for all foreign buyers |
| Appraisal fee (if mortgage) | €300–€800 | Required by the bank |
“Always use a local lawyer. They check whether the property has any outstanding debts, illegal extensions or permit issues — all of which transfer to the new owner at completion.”
4. Recurring costs as an owner
| Tax / Cost | Rate | Notes |
|---|---|---|
| Property tax (IBI) | 0.3–0.7% of cadastral value | Annual — cadastral value is well below market value |
| Non-resident income tax (IRNR) | 19% (EU) / 24% (non-EU) | Imputed income on 1.1–2% of cadastral value if unrented |
| Waste collection tax | €100–€400/year | Depends on municipality |
| Community fees (urbanisation) | Varies | Monthly or quarterly — shared areas and facilities |
| Wealth tax (Patrimonio) | From 0.28% | Above certain threshold — consult tax adviser |
5. What does the seller pay?
Sellers in Ibiza face two main taxes:
3% withholding for non-resident sellers: When a non-resident sells, the buyer is legally required to withhold 3% of the purchase price and pay it directly to the Spanish Tax Agency. This is an advance payment on capital gains tax. The seller can reclaim any overpayment via Modelo 210 within 3 months.
Primary residence reinvestment exemption: Spanish residents who sell their primary home and reinvest proceeds in a new primary residence within 2 years are exempt from capital gains tax. Non-residents cannot use this exemption.
Over-65 exemption: Sellers aged over 65 selling their primary residence are fully exempt from capital gains tax.
6. Who pays the estate agent?
In Spain — and on Ibiza specifically — the seller pays the estate agent’s commission. As a buyer, you pay nothing to the agent in the vast majority of cases, unless contractually agreed otherwise. Ibiza Now represents both parties professionally and impartially.
Total cost overview — what to budget
| Situation | Additional budget on top of purchase price |
|---|---|
| Resale property up to €600,000 | ~9–10% (ITP + notary + lawyer + registry) |
| Resale property €600,000–€1,000,000 | ~10–11% |
| Resale luxury property above €1,000,000 | ~12–14% |
| New build standard | ~11.5% (10% IVA + 1.2% AJD + fees) |
| New build luxury above €1,000,000 | ~12–13% (10% IVA + 2% AJD + fees) |
Want a personalised
cost estimate for your situation?
Every purchase is different — price, property type, financing and residency status all affect the exact tax burden. Our team can put you in touch with a local tax specialist who will prepare a detailed breakdown for your specific case.