Property Conveyance Tax (ITP)
For resale properties, the buyer is required to pay the Property Conveyance Tax (ITP), which is based on the sale price stated in the deed or private contract. The tax rate in the Balearic Islands ranges from 8% to 13%, depending on the property’s value.
The ITP tax is cumulative, meaning the tax is charged progressively on the portion of the value within each bracket.
Value Added Tax (VAT/IVA) and Stamp Duty (AJD)
For newly built properties, VAT applies instead of ITP. The VAT rate is 10% for residential properties and 21% for commercial properties. Additionally, the buyer must pay Stamp Duty (AJD), which is 1.5% of the purchase price.
Other Costs
- Attorney Fees: Typically around 1% of the purchase price, paid by the buyer who seeks legal advice.
- Mortgage Costs: If financing the purchase, a property valuation is required, with fees ranging from €300 to €3,000 depending on the property size.
- Notary and Property Registry Fees: These fees are usually less than 0.5% of the purchase price and are paid by the buyer.
- Banking Expenses: Costs related to banking services, depending on the bank and payment method.
- Agency Fees: Generally paid by the seller, unless otherwise agreed.
These are the key costs involved when buying property in Ibiza. It’s important to budget for these expenses in addition to the property price itself, please download our purchase guidance PDF for each Property.
