Information for prospective buyers

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For Buyers

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 staggered
    • < 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 extensively renovated residential properties (first occupancy)
    Amount: 10 % of the purchase price
  • Stamp duty (AJD), only if VAT is incurred (new-build properties)
    Amount: 1.5% of the purchase price
  • Legal fees
    Amount: approx. 1 % of the purchase price plus 21 % VAT.
  • Notary fees
    Amount: approx. 0.1 % - 0.3 % of the purchase price
    The notary fees are based on the purchase price of the property and increase in line with the value.
    The values given are approximate values - depending on the size of the document, number of pages, number of parties, etc.
    • < 100.000 €: ca. 600 € – 800 €
    • 100.000 € - 300.000 €: approx. 800 € - 1,000 €
    • 300.000 € - 500.000 €: approx. € 1,000 - € 1,300
    • 500,000 € - 1. million €: approx. € 1,300 - € 1,800
    • > 1. million €: approx. > € 1,800
  • Land registry
    Amount: 0.1 % - 0.2 % of the purchase price, min. approx. 700 €
  • Total: approx. 10-14 % of the purchase price
  • In Spain, the seller pays the estate agent's commission (between 5% and 7%)

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)
    • Area of application: Anyone who acquires real estate property in Mallorca and does not rent it out is considered by the state to have "notional rental income", which is taxed.
    • Who? Non-resident owner
    • Amount: 1.1 % or 2 % of the cadastral value as the assessment basis, on which 19 % tax for EU/EEA residents and 24 % for non-EU residents is levied.
    • 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, bank deposits, securities in Spain and shares in Spanish companies).
    • Who? Owner
    • Amount: from € 3,000,000.00 asset value (valid from January 1, 2024, before that from € 700,000.00)
    • Progressively staggered, 0.28 % 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 (after deduction of permitted costs: Maintenance, interest, IBI, insurance, etc.) or 24% of gross rental income for non-EU residents (no deduction of costs possible)
  • Income Tax (IRPF)
    • Who? Resident owners with main residence in Spain
    • Amount: The assessment basis is 40% of the net rental income
  • Sales tax:
    • Who? Tourist holiday landlords
    • Amount: 25 % of the profit