How to Avoid Mistakes When Buying Property in Ibiza as a Foreigner

Ibiza’s property market is booming — but buying here without legal support can quickly turn into a costly legal nightmare. Rustic land, unclear titles, or a rushed deposit could expose you to fines or even demolition.

At Borderless Lawyers, we’ve helped hundreds of foreign buyers avoid common pitfalls — by handling everything from due diligence to final registration.


⚠️ Mistake #1: Skipping Legal Due Diligence

Many buyers trust agents or assume everything is legal. That’s risky.

Common issues we uncover:

  • Illegal renovations

  • Unregistered pools or guesthouses

  • Properties on protected or coastal land

  • Hidden debts or co-ownership problems

âś… Always conduct due diligence before signing the arras contract.


⚠️ Mistake #2: Paying a Deposit Without Legal Review

The arras contract is binding in Spain. If you change your mind, you lose your deposit — often 10% of the price.

Avoid this by:

  • Reviewing the arras with a lawyer

  • Including legal contingencies (due diligence, finance)

  • Ensuring the seller has clear title and proper ID


⚠️ Mistake #3: Not Using Power of Attorney (POA)

If you’re abroad, using POA avoids delays and ensures everything is signed on time. Without it, buyers often:

  • Miss out on properties

  • Sign late and incur penalties

  • Incur extra travel and notary costs

âś… We draft, notarize, and manage POAs for buyers worldwide.


⚠️ Mistake #4: Not Understanding Rustic Land Restrictions

Ibiza has strict urban planning laws, especially for rural properties.

Risks include:

  • No building or renovation allowed

  • Illegal constructions you’ll be forced to remove

  • No tourist rental licenses allowed

âś… We obtain planning reports and town hall certificates before you buy.


⚠️ Mistake #5: Ignoring Tax Obligations

Foreign buyers often underestimate:

  • ITP/VAT during purchase

  • Non-resident income tax after purchase

  • PlusvalĂ­a or capital gains on resale

âś… We provide a full tax forecast before you sign anything.


đź’Ľ What We Do

At Borderless Lawyers, we:

  • Conduct full legal due diligence

  • Draft or review arras contracts

  • Represent you via POA

  • Handle tax filings and notary signings

  • Register the property and notify the Cadastre


đź’¬ Final Word

Buying property in Ibiza as a foreigner is 100% possible — but only with proper legal support. The cost of mistakes can far outweigh the price of hiring the right team.

📞 Contact Borderless Lawyers today and let us protect your Ibiza investment from day one — legally, safely, and remotely.

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