A Comprehensive Guide for Buyers

Exploring Property Opportunities in Ibiza

Ibiza is an idyllic and tranquil island.

Buying a property in Ibiza is a rewarding purchase.

The Balearic lifestyle has broad appeal, from its sunny climate, relaxed pace of life and vibrant mix of people. Whether it’s a seasonal holiday home or a permanent island escape, our extensive portfolio of on and off-market homes is waiting for you to make your mark.

The housing market in Ibiza has always attracted high levels of interest from international buyers.

Our team has more than 15 years experience in Ibiza. We list exclusively and can offer access to the best homes on the island. We can help you navigate the purchasing process and introduce you to our network of partnered planners and legal representatives as well as leading architects and designers. Our deep consideration of your ambitions will ensure you end up with the perfect property.

Read our buying property in Ibiza guide to learn more about the process and ensure the route to your perfect island home is as streamlined and enjoyable as possible.

Considering location

Ibiza is a vibrant place of diverse lifestyles and locales. Before you begin your search, get to know the island as much as possible. We have a series of areas guide to help familiarise yourself with the towns and villages of all five municipalities.

It’s best to keep your thoughts on location as broad as possible and let the property specifics guide you on what to view – such as the number of bedrooms or amount of outside space – rather than location.

If you’re buying as an investment, our team can help navigate the tourist hotspots and competition to determine the smartest areas to place your money in.

But perhaps it’s the local community and schools, countryside quietude or proximity to the beach that is driving your search. No matter how you want to live in Ibiza, keep an open mind and let our team of island insiders guide you to pockets both known and unexpected.

Learn more about the different municipalises and towns of Ibiza:

What you need to know for buying a property in Ibiza and secure your dream home…

Our guidance on How to Buy a Property in Ibiza has been written with helpful tips for your personal buyers’ journey. This guide can be kept for your reference each step of the way, and any extra personal advice can be sourced from us.

Taxes and Costs when buying a property in Ibiza:

Property Conveyance Tax (ITP)
Value Added Tax (VAT/ IVA)
Attorney Fees
Mortgage fees
Notary Fees & Property Registry Fees
Banking Expenses

Buying a home in Ibiza, Spain, has multiple tax repercussions. Each purchase is subject to payment of Property Conveyance Tax or Value Added Tax, depending on the type of property in question.

Property Conveyance Tax (ITP)

When the property is used as a dwelling, the purchaser has to pay the Property Conveyance Tax (Impuesto de Transmisiones Patrimoniales or ITP, in Spanish). This tax is calculated based on the declared sale price reflected in the title deed or the private purchase contract, unless the value of the property, according to the Tax Department is deemed higher, in which case the price will be recalculated by the tax authorities accordingly.

This tax must be paid to the Tax Office of the municipality where the property is located, regardless of where the public sale/purchase or title deed is formalised.

The payment deadline of the Property Conveyance Tax is one calendar month from the title deed execution date.

In the Balearic Islands, the rate is between 8% and 11.5% of the taxable base, depending on the value of the conveyed property. For example:

Up to € 400,000 (8%)
€ 400,000 – € 599,999 (9%)
€ 600,000 – € 999,999 (10%)
Over € 1,000,000 (11.5%)

The ITP tax is accumulative, meaning that the first 400.000€ are charged at 8%, and the rest that overpass that amount will be charged at the pertinent percentage.

Payable parking spaces:

Up to € 30,000 (8%)
Over € 30,000 (9%)

The Value Added Tax (VAT / IVA)

If the dwelling is newly built and this is the first occupancy conveyed to the purchaser by the developer or builder – the Property Conveyance Tax is not applicable, but the following two taxes must be paid instead:

1. Value Added Tax (VAT/ IVA)

The VAT is paid to the seller by the purchaser (together with the purchase price) and the seller must pay the VAT directly to the Tax Agency.

10% for housing.
21% for land, commercial premises, storage rooms, and garages.

2. Stamp Duty (Impuesto de Actos Jurídicos Documentados or AJD, in Spanish)

In general, whenever the purchase of a property is subject to VAT, the purchaser must additionally pay Stamp Duty Tax (AJD, in Spanish) at 1.5% of the purchase price. It is payable by the purchaser which must be presented within one calendar month (date to date) from the signature date of the title deed via the self-assessment procedure.

Other Expenses Arising From The Purchase of a Property in Ibiza

Attorney Fees. Approximately 1% of the purchase price, to be paid by whoever solicits the legal advice.
Notary Fees & Property Registry Fees. These fees will vary depending on the value of the property and other factors but will usually not exceed 0.5% of the purchase price; plus, as the purchase price increases the percentage decreases and can be as low as 0.1% or even lower. These fees are both to be paid by the purchaser.
Banking Expenses. Depending on the bank and the form of payment.
Agency Fees. Paid by the seller, unless otherwise agreed.

Summary of the costs related to buy a property in Ibiza

Total expenses for the purchaser can range between 8% and 12% of the purchase price and include the following:

Taxes: ITP 8-11% or 10% VAT + 1.5% Stamp Duty
Attorney/Consultancy fees: 1%
Notary & Property Registry fees: 0.1% – 0.5% (or less)
Banking expenses: Various

Annual costs

1. IBI property tax

IBI tax is paid by all property owners whether resident or non-resident. The tax base is calculated on the cadastral value of the property. This is the perceived capital value given by the town hall of the relevant municipality and is usually much lower than the actual market value (possibly 50% or less). IBI tax is between 0.3% and 1.1% of the cadastral value, depending on whether it’s on rural or urban land and which municipality it’s in.

2. IRNR/IRPF income tax for non-residents

IRNR is a form of income tax that must be paid by all non-resident property owners. If the property is not rented, a base is assumed and the tax rate applied. In this case, the tax base is 1.1% of cadastral value at a tax rate of 19% for EU residents and 24% for non-EU residents.

IRPF is the standard income tax paid by residents but applied only to the income of the rental property, less expenses. As above, the tax rate for this is 19% for EU residents and 24% for non-EU residents.

3. Wealth tax

Like IBI, wealth tax is paid by all property owners whether resident or non-resident. For non-residents, the tax-free allowance is €700,000. After that, the tax rate is on a sliding scale from 0.2% to 2.5%. The tax is based on the net value of the asset after deductions of the mortgage. For this reason, it can be worthwhile looking at refinancing after purchase

Tourist Licenses

You may be interested in developing a rental income from your Ibiza property. To legally promote and rent a property for short stays (which are defined as a tenancy of less than one month), the property will need a valid tourist license. For longer tenancies, there is no license requirement, 30 days of rental are legally permit.

Some properties will already have an older tourist license that does not expire. The more recent type of license is the ETV365, which expires every five years and must be renewed after this period.

Currently, there is a moratorium on applications for new tourist licenses meaning it is not possible to apply for one. It is not known if or when this will change. Previously, the following conditions were required, so it is likely a similar process will apply should new licenses be granted in the future:

Valid certificate of occupancy known as a Cedula de Habitabilidad
It must be within a tourist zone
The property must be at least five years old and have been used as a private residence
There must be a valid energy certificate
There must have been no previous infractions of the holiday rental licensing laws