Costs
Taxes and fees: what to budget on top of the purchase price
For resale properties in the Balearics, transfer tax is the largest item. It rises with the price to as much as 13%.
Transfer tax (ITP) on resale properties
When buying a resale property, the buyer pays the Impuesto sobre Transmisiones Patrimoniales (ITP). In the Balearics it is tiered: each part of the price is taxed at the rate of its band.
| Part of the price | Rate |
|---|---|
| up to €400,000 | 8% |
| €400,000 – 600,000 | 9% |
| €600,000 – 1,000,000 | 10% |
| €1,000,000 – 2,000,000 | 12% |
| over €2,000,000 | 13% |
An example: a price of €1.8 million results in around €186,000 ITP, an effective rate of about 10.3%. Reduced rates exist only for certain groups and smaller homes, such as young buyers resident on the islands. Most international buyers pay the standard rates.
New builds: IVA and stamp duty
If you buy directly from a developer, VAT (IVA) of 10% applies instead of ITP, plus stamp duty (AJD) of 1.5%, or 2% from €1 million.
Notary, land registry, lawyer
Add the notary, registration in the land registry and usually a gestoría to handle the paperwork. Your own independent lawyer is strongly recommended. They check the registry, building permits and debts before you sign anything. Their fee is agreed individually.
If the seller does not live in Spain
If the seller is not tax resident in Spain, the buyer withholds 3% of the price and pays it to the tax office. This is not an extra cost, but it must be taken into account at completion.
Rule of thumb
For resale properties, budget around 10% or more in purchase costs, depending on the price. Your lawyer or tax adviser can give you an exact calculation for your house, and I am happy to introduce you.
Sources: guiafiscal.es – ITP-AJD Baleares 2026 · mallorca.com – ITP Balearic 2026