Resale property: transfer tax
When you buy from a private owner, you pay Balearic transfer tax (Impuesto sobre Transmisiones Patrimoniales). The scale is progressive: the rate rises in bands as the price increases, so expensive villas pay a higher effective rate than apartments. Reduced rates and bonuses exist for some buyers of a main home, such as young buyers, under conditions that change regularly. The tax is self-assessed and paid within one month of the deed.
The tax base is not always the price written in the deed. Since 2022 the cadastral reference value applies where it is higher than the declared price. Ask for the property's reference value before agreeing the price.
New build: VAT and stamp duty
The first sale of a new home by a developer is subject to VAT, generally at the reduced rate for dwellings, plus Balearic stamp duty on the deed. Garages and storage sold separately and commercial units can follow different rates. The contract should state whether prices include VAT. See new-build property in Mallorca.
Professional and completion costs
| Cost | Notes |
|---|---|
| Notary | Regulated fees, depending on price and length of the deed |
| Land Registry | Regulated fees for registering your title |
| Legal fees | Agree a written scope and quote in advance |
| Architect or surveyor | Recommended for villas, fincas and older houses |
| Translations, apostilles, powers of attorney | For buyers abroad |
| Mortgage-related | Valuation; most other mortgage costs are borne by the bank since 2019 |
Property-specific costs
Some costs depend on the property: correcting a title description, registering old buildings, legalising an extension, obtaining a habitability certificate, or paying a community levy already approved. Identify them in due diligence and allocate them in the contract.
Ongoing ownership costs
- IBI municipal property tax and waste collection charges.
- Community fees for apartments and complexes.
- Insurance, utilities and maintenance.
- Non-resident annual income tax if you do not live in Spain.
- Income tax on rent if you let the property.
How to obtain a dependable estimate
Give your lawyer the agreed price, cadastral reference, type of seller, intended use, financing and how you will own the property. Ask for a written estimate before the arras contract, and a final completion statement before signing. Our property team works across Mallorca and the other islands; for other legal matters in English, see Castell.law.
Before you pay a deposit, ask a lawyer
Send us the listing or the document you have been asked to sign. An English-speaking property lawyer will tell you what needs checking and what it could cost you not to.
Frequently asked questions
How much are buying costs in Mallorca?
It depends on the price, the type of seller and your circumstances. Transfer tax is the largest item on resales; ask for a written estimate for your case.
Who pays the plusvalía when buying?
Normally the seller. If the seller is a non-resident individual, the buyer is legally responsible and retains it from the price.
Is VAT charged on a resale villa?
Usually not. Resales between private individuals pay transfer tax; VAT applies to first sales by developers.
Are there reduced rates for buyers?
Some reduced rates and bonuses exist for main homes and specific groups, with conditions that change. Check them for your case.