Buying Real Estate in Mallorca – Make the Right Decision with the Right Information

Information for Buyers

For many people, buying a property in Mallorca is a long-cherished dream. Whether it’s a Mediterranean finca, a charming village house, a modern villa, or a beachfront apartment—to ensure this dream turns into a sound decision, you should be familiar not only with the purchase price but also with the tax and legal framework.

What additional costs are involved in buying real estate in Mallorca? What taxes do property owners have to pay? And what should you keep in mind if you want to rent out your property long-term or as a vacation rental?

On this page, we have compiled important information for you regarding the purchase of real estate in Mallorca. You’ll find an overview of the main closing costs, ongoing taxes, and tax-related specifics for residents and non-residents.

Our goal is to provide you with guidance and transparency. After all, every property and every personal situation is different. Teewinot Real Estate Mallorca supports you with local market knowledge and personalized advice as you search for the right property—so you can make an informed decision with confidence.

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