Overview of ancillary purchase costs

• Real estate transfer tax (ITP), acquisition of existing real estate
  Amount: between 8% and 13% of the purchase price, progressively graduated
  • < 400.000 €: 8%
  • 400.001 - 600.000 €: 9%
  • 600.001 - 1.000.000 €: 10%
  • 1.000.001 - 2.000.000 €: 12%
  • > 2.000.001 €: 13%
• A finca with a purchase price of e.g. € 1,200,000 is therefore graded as follows:
  • 400,000 € at 8% = 32,000 €
  • 200,000 € at 9% = 18,000 €
  • 400,000 € at 10% = 40,000 €
  • 200,000 € at 12% = 24,000 €
  • Total: 9.5% or €114,000
• Value added tax (IVA), only for new build or comprehensively refurbished residential properties (first occupation)
  Amount: 10% of purchase price
• Stamp duty (AJD), only when VAT is incurred (new build properties)
  Amount: 1.5% of purchase price
• Legal fees
  Amount: 1% of the purchase price plus 21% VAT.
• Notary fees
  Amount: 0.1% - 0.3% of the purchase price, min. approx. € 1,000
• Land registry
  Amount: 0.1% - 0.2% of the purchase price, min. approx. 700 €
• Total: approx. 10-14% of the purchase price
• The broker's commission (between 5% and 7%) is paid by the seller in Spain.
  
  

Current taxes for (future) owners

• Property tax (IBI)
  • valid for any type of residential property
  • Basis: cadastral value
  • for urban properties: between 0.4% and 1.1% (depending on the municipality)
  • for rural properties: between 0.3% and 0.9% (depending on the municipality)
• Waste fee (Basura)
  • valid for any type of residential property
  • approx. 100 € to 300 € depending on property and municipality
• Non-resident tax (IRNR)
  • Field of application: Whoever acquires real estate property in Mallorca and does not rent it out, the state assumes a "fictitious use", which is taxed.
  • Who? Non-resident owner
  • Amount: 1.1% or 2% of the cadastral value as the assessment basis, on top of which 19% tax for EU/EEA residents or 24% for non-EU residents.
  • 1,1%: Review or adjustment of the cadastral value within the last 10 years
    2%: Without current adjustment of the cadastral value (> 10 years)
• Wealth tax:
  • Area of application:
    For Spanish residents, the tax applies to worldwide assets.
    For non-residents, only Spanish assets apply (real estate owned in Spain and shares in Spanish companies).
  • Who? Owner
  • Amount: from 700,000.00 euros asset value
  • Progressively graded, 0.2% to max. 3.45% p.a.
    
    

Current taxes for long-term rentals and holiday rentals

• Income tax (IRNR)
  • Who. Non-resident owners
  • Amount: 19% of net rental income for EU residents or 24% for non-EU residents.
• Income Tax (IRPF)
  • Who? Resident owners with main residence in Spain
  • Amount: Assessment basis is 40% of net rental income
• Sales tax:
  • Who? Tourist holiday landlords
  • Amount: 25% on the profit