Buying property in Ibiza means more than just paying the price listed on a real estate website. Foreigners must budget for transfer taxes, legal fees, notary costs, and annual taxes after the purchase.
At Borderless Lawyers, we give clients a complete, personalized cost estimate before they sign anything.
💸 One-Time Taxes When Buying Property in Ibiza
The main tax depends on whether the property is new or second-hand.
🏡 Resale Property (Second-Hand)
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ITP (Transfer Tax):
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8% for first €400,000
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9% between €400,000–€600,000
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10% over €600,000
(Applied in tiers, as per Balearic Islands tax rates)
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🏗️ New Build Property
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VAT (IVA): 10%
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Stamp Duty (AJD): 1.5%
✅ You won’t pay both ITP and VAT — only one applies depending on property type.
📋 Other Buying Costs
| Expense | Typical Range |
|---|---|
| Notary Fee | €600 – €1,200 |
| Land Registry Fee | €400 – €1,000 |
| Legal Fees (Lawyer) | 0.75% – 1.5% of price |
| Gestoría (optional) | €300 – €500 |
| Bank/Mortgage Fees | Varies (if financed) |
💡 Our legal fees include NIE, POA management, and all tax filings.
🧾 Annual Property Taxes in Ibiza
Once you own the property, you must pay the following:
🏛️ IBI (Impuesto sobre Bienes Inmuebles)
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Paid to the local municipality
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Based on the cadastral value
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Usually €200 – €2,000+ per year
🌐 Non-Resident Income Tax (Modelo 210)
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Applies to all non-resident owners
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Based on “imputed rent” value of the home
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Rate: 19% for EU citizens, 24% for non-EU
✅ We file this annually for clients under our full service package.
🏘️ Optional/Occasional Costs
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Community fees (for apartments or urbanized villas)
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Property insurance
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Utility deposits and setup fees
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Plusvalía tax (on future resale)
💼 What We Do
At Borderless Lawyers, we:
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Provide a full pre-purchase tax estimate
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Handle all one-time and recurring tax filings
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Pay ITP, AJD, or VAT via POA
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Coordinate with the notary and registry
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Help reduce future tax liabilities via proper structuring
💬 Final Word
Understanding property taxes and buying costs in Ibiza helps you avoid nasty surprises and make smart financial decisions. Many foreign buyers overlook taxes until the last minute — costing them time, money, or worse.
📞 Contact us now for a clear, upfront tax forecast for your Ibiza purchase — with no hidden surprises.