What Taxes Will You Pay When Buying Property in Ibiza?
Foreign buyers should plan for 10% to 13% in purchase-related costs. These taxes and fees vary depending on whether you’re buying a new build or a resale property.
We explain the exact tax breakdown below — plus additional costs you must budget for.
🏘️ Resale Properties in Ibiza (Second-Hand)
🧾 ITP – Property Transfer Tax
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Paid by: Buyer
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Rate (Balearic Islands):
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8% for 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 – Agència Tributària de les Illes Balears
🔍 We confirm the declared value aligns with the Balearic tax authority’s reference value to avoid audits.
🏗️ New Build Properties in Ibiza
🧾 IVA + AJD (VAT & Stamp Duty)
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IVA: 10% of purchase price
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AJD (Stamp Duty): 1.5%
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Only applicable when buying directly from a developer or builder
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Paid simultaneously at notary signing
🖋️ Additional Legal & Notary Costs
| Item | Estimated Cost |
|---|---|
| Notary Fees | €600 – €1,200 |
| Land Registry | €400 – €900 |
| Gestoría (optional) | €300 – €600 |
| Lawyer Fee | 0.8% – 1.5% or flat fee |
| NIE Application | €100 – €300 |
| Power of Attorney | €150 – €250 |
✅ We provide a full quote with no surprises — all in English, French, German, or Dutch.
💸 Ongoing Property Taxes After Purchase
| Tax | Description |
|---|---|
| IBI (Impuesto sobre Bienes Inmuebles) | Annual municipal tax based on cadastral value |
| Basura (Waste Collection Tax) | Paid to the local town hall |
| Non-Resident Income Tax | 19% (EU) or 24% (non-EU) of deemed rental income |
| Rental Income Tax | If renting your property, taxed on actual income (with deductions if EU resident) |
We partner with Spanish tax advisors to handle annual filings for non-residents.
⚠️ Hidden or Surprise Costs
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🧱 Unlicensed renovations may trigger fines or demolition
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🧾 Unpaid community fees or utilities can transfer to the new owner
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💳 Currency exchange fees on large transfers
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🛫 Translation or interpreter fees if you attend the notary without your lawyer
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📦 Insurance & moving costs
💼 Our legal team uncovers every potential liability before you close the deal.
🧮 Sample Budget – €800,000 Ibiza Resale Property
| Item | Cost |
|---|---|
| ITP | ~€74,000 |
| Notary & Registry | €1,800 |
| Lawyer | €8,000 (1%) |
| Miscellaneous (NIE, POA) | €500 |
| Total Purchase Costs | ~€84,300 |
💡 Budget around 10.5% extra for a realistic total.
🧑⚖️ Why Choose Borderless Lawyers for Ibiza Property?
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Fixed-fee legal packages
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Local Ibiza expertise, global client base
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100% bilingual contracts and communications
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Full tax coordination, even for remote buyers
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No surprises, just clear legal guidance
📞 Buying Property in Ibiza? Know the Costs Upfront
We calculate your exact tax exposure and protect you from hidden financial risks.