Selling, Gifting & Inheriting Property in Ibiza – Legal & Tax Guide for Foreigners

Own Property in Ibiza? Here’s What Happens When You Sell, Gift, or Pass It On

Foreigners who own villas, apartments, or land in Ibiza need to understand the legal consequences when:

• Selling to another buyer

• Gifting to children or family

• Passing the property on through inheritance

Spain — and the Balearic Islands — apply specific tax rates and legal formalities, especially for non-residents.

💼 At Borderless Lawyers, we ensure you stay compliant and minimize your tax liability.

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💰 Selling Property in Ibiza as a Foreigner

✅ Key Legal Steps

1. Hire a lawyer to check property status (debt-free, properly registered)

2. Sign a private contract or arras agreement with buyer

3. Sign the public deed of sale before a notary

4. File and pay taxes due on the sale

5. Update the Land Registry & notify the tax office

💸 Capital Gains Tax (CGT)

Tax is applied to the profit (gain) after deducting purchase price, legal fees, notary costs, and renovations.

💡 3% of the sale price is withheld by the buyer to cover non-resident CGT.

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🧾 Plusvalía Municipal

This is a local tax on the increased value of the land (not the building) since the last ownership transfer.

• Paid to: Ibiza Town Hall (or local municipality)

• Must be declared within 30 days of sale

We calculate and file it for you.

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🎁 Gifting Property in Ibiza (Donation)

Transferring ownership to children, spouses, or relatives without a sale is legally a donation — and subject to gift tax.

🧾 Gift Tax (Impuesto de Donaciones)

• Paid by: Recipient

• Taxed based on property value and relationship to donor

• Ibiza (Balearic law) offers tax reductions for Group I & II relatives:

  • Children & Spouses: Up to 75%–99% deductions

  • Distant relatives or unrelated: Higher rates

The process requires a public deed of donation and formal registration.

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⚰️ Inheriting Property in Ibiza as a Foreigner

Ibiza property can be inherited by foreigners, but heirs must follow these legal steps:

✅ Inheritance Process

1. Register death and will (Spanish or foreign)

2. Obtain acceptance of inheritance deed

3. File inheritance tax within 6 months (1 extension allowed)

4. Register new ownership at Land Registry and Cadastre

5. Pay any outstanding taxes or debts

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🧾 Inheritance Tax (Impuesto de Sucesiones)

• Paid by: Heir

• Based on property value and relationship to deceased

• Heirs in Group I & II (children, spouses, parents) benefit from:

  • 99% deduction in Balearic Islands if the deceased was a resident there

💡 Non-residents can still access regional tax benefits thanks to recent EU rulings — we’ll ensure you do.

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🌍 Cross-Border Legal Challenges

• Foreign wills must be translated, apostilled, and legally recognized

• Forced heirship in your home country may complicate Spanish inheritance

• Gift and inheritance taxes may apply both in Spain and abroad

🧑‍⚖️ Our team coordinates with international lawyers and tax advisors to avoid double taxation and delays.

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🧑‍⚖️ Why Trust Borderless Lawyers in Ibiza?

• We handle 100% of the process remotely (sale, gift, inheritance)

• Fixed-fee packages, no surprises

• Tax calculation, deed drafting, and Land Registry updates

• Bilingual lawyers experienced with foreign clients

• Trusted by heirs and sellers from 30+ countries

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📞 Selling, Gifting or Inheriting Property in Ibiza?

We take care of everything — legal, tax, and registration — so you don’t risk delays, fines, or asset freezes.