In Palma, foreign buyers should expect to pay around 10%–13% on top of the sale price in taxes and fees. Many overlook these hidden costs and end up underbudgeting.
This guide breaks down:
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Taxes on new vs. resale properties
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Notary and registration fees
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Ongoing property taxes
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Hidden and surprise costs
🏠 Main Property Taxes in Palma de Mallorca
🏘️ Resale Property (Second-hand)
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ITP (Impuesto sobre Transmisiones Patrimoniales)
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Rate:
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8% up to €400,000
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9% on €400,001–€600,000
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10% on €600,001–€1,000,000
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11.5% above €1,000,000
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Paid to: ATIB (Balearic tax authority)
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🏗️ New Build Property
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VAT (IVA): 10%
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Stamp Duty (AJD): 1.5%
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Only applies when buying directly from a developer
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Paid simultaneously at notary
🖋️ Notary & Land Registry Fees
| Fee Type | Estimate |
|---|---|
| Notary Fees | €600 – €1,200 |
| Land Registry | €400 – €900 |
| Gestoría (optional admin help) | €300 – €600 |
✅ We review all invoices and ensure accurate registration.
⚖️ Legal Fees
Hiring an independent Spanish lawyer is strongly advised — especially in tourist-driven markets like Palma.
| Service | Typical Cost |
|---|---|
| Legal Fees | 0.8% – 1.5% of property value or flat rate |
| NIE Application | €100–€300 |
| Power of Attorney | €150–€250 (if buying remotely) |
We offer flat-fee property packages tailored to foreign buyers.
🔁 Ongoing Property Taxes After Purchase
| Tax | Description |
|---|---|
| IBI (Impuesto sobre Bienes Inmuebles) | Annual municipal tax based on cadastral value |
| Garbage Collection (Basura) | Waste tax from Palma City Council |
| Non-Resident Income Tax | 19% (EU) or 24% (non-EU) of imputed income |
| Rental Income Tax | 19% (EU), 24% (non-EU) – deductions apply for residents |
✅ We connect you with trusted tax advisors for yearly compliance.
🕵️ Hidden or Unexpected Costs
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🛠️ Community fees (for shared spaces like pools, elevators)
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🔗 Old debts that transfer with the property (IBI, utilities)
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💳 Currency conversion fees from non-EUR accounts
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💼 Mortgage setup and appraisal (if financing locally)
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✈️ Travel, POA, translator costs if not handled remotely
We uncover all potential expenses during legal due diligence.
🧮 Sample Budget: €500,000 Resale Apartment in Palma
| Item | Estimate |
|---|---|
| ITP (up to €500K) | €44,000 (approx.) |
| Notary & Registry | €1,500 |
| Lawyer Fee (1%) | €5,000 |
| NIE, POA, Misc. | €500 |
| Total Extra Costs | ~€51,000 |
| Grand Total | €551,000 |
💡 We provide precise budgeting based on your nationality and purchase type.
🧑⚖️ How Borderless Lawyers Helps
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We handle all taxes and filings with the ATIB
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Review and negotiate costs in contracts
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Monitor payment deadlines and apply for exemptions
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Offer a 100% remote process with POA
Whether you’re buying a villa, apartment, or rural finca — we simplify everything.
📞 Want to Know Your Real Costs to Buy in Palma?
Avoid budget surprises and make your purchase with full financial clarity.