If you’re buying real estate in Mallorca as a foreigner, it’s important to understand the full tax and cost breakdown before signing a contract. Many buyers underestimate the true cost of buying — leading to surprises during completion.
At Borderless Lawyers, we give clients an accurate, personalized tax forecast before they commit.
🏷️ One-Time Taxes When Buying Property in Mallorca
Depending on the type of property, you’ll pay one of the following:
🏡 For Resale Properties:
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ITP (Transfer Tax):
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8% for properties under €400,000
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9% between €400,000–€600,000
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10% over €600,000
(Tiered and applied regionally in the Balearic Islands)
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🏗️ For New Builds:
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VAT (IVA): 10%
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Stamp Duty (AJD): 1.5%
✅ VAT applies to developer sales; ITP applies to second-hand properties.
🧾 Notary, Registry & Legal Fees
These are standard across Spain:
| Fee Type | Approx. Cost |
|---|---|
| Notary Fee | €600 – €1,200 |
| Land Registry Fee | €400 – €900 |
| Legal Fees (Lawyer) | 0.75% – 1.5% of price |
| Gestoría (optional) | €300 – €500 |
✅ At Borderless Lawyers, our legal fee includes POA support, tax filings, and due diligence.
📅 Annual Property Taxes in Mallorca
Once you own the property, expect:
🏛️ IBI (Property Tax)
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Paid annually to the local town hall
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Based on cadastral value
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Ranges from €300 to €2,000+
🌐 Non-Resident Income Tax (Modelo 210)
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Applies to non-resident owners
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Even if you don’t rent the property
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Based on imputed rental value (~2% of cadastral value × 19% rate)
✅ We file this tax for our clients every year.
💡 Other Possible Costs
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Community fees (for apartments or urbanizations)
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Utility connection/setup
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Property insurance
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Bank charges (international transfers, mortgage arrangement)
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Plusvalía tax (if reselling in the future)
💼 What We Do for You
At Borderless Lawyers, we:
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Provide a full pre-purchase tax estimate
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Handle ITP, VAT, and AJD filings
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Pay taxes and submit forms via POA
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Advise on tax-efficient ownership (personal vs. company)
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File your non-resident tax annually (optional service)
💬 Final Word
Understanding property taxes and buying costs in Mallorca is essential for any foreign buyer. Without proper planning, unexpected expenses could disrupt your budget — or delay the purchase entirely.
📞 Contact us today for a complete breakdown of taxes and costs based on your property in Mallorca.