Property Buying Costs in Mallorca: ITP, Notary, Fees

The costs at a glance

The estate agent’s commission in Mallorca is customarily paid by the seller, so it is not part of a buyer’s costs. The municipal capital gains tax (plusvalía municipal) is likewise the seller’s obligation by law.

The Balearic ITP scale

The Balearic Islands do not tax resale homes at a flat rate. The tax is progressive: each portion of the price falls into its own bracket. The scale has applied since 1 January 2023 (source: ATIB, legal basis Decreto Legislativo 1/2014):

A worked example: on a purchase price of €1,500,000 the tax is €32,000 (8 % on the first €400,000) + €18,000 (9 % on the next €200,000) + €40,000 (10 % on the next €400,000) + €60,000 (12 % on the final €500,000) — €150,000 in total, an effective 10 %.

Reduced rates for a main residence

Buyers who make the property their main residence can pay less under narrow conditions: 4 % up to a property value of €270,151.20, 2 % among others for buyers under 36 purchasing their first home, and a full exemption for certain buyers under 30 or with a disability — each tied to residence, income and value limits. These rates do not apply to the typical second-home purchase; the general scale above is what counts. The ATIB lists the exact conditions.

New-builds: IVA instead of ITP

On a first sale from the developer no ITP is due. Instead, buyers pay VAT (IVA) at the reduced rate of 10 % for residential property (Art. 91 of Ley 37/1992), plus stamp duty (AJD) on the notarial deed: 1.5 % in the Balearics, increased to 2 % from a property value of €1,000,000 (source: ATIB).

Notary, land registry, conveyancing

Notary and land registry fees are set by royal decree in Spain and rise with the deed value; they can be calculated exactly before completion. From our own transactions, both items together usually come to a low four-figure sum depending on the price — a practical observation, not an official figure. A gestoría often handles the tax filing and registration on top.

An independent lawyer is not mandatory in Mallorca but strongly recommended — a fee of around 1 % of the price is customary (by agreement, from experience). They check charges, planning legality, the habitation certificate and the contracts.

Frequently asked questions

How high is the property transfer tax in Mallorca?

For resale homes, the Balearic progressive scale runs from 8 % (up to €400,000) to 13 % (above €2,000,000). The effective rate therefore sits in between depending on the price — for example 10 % at €1,500,000. The source is the Balearic tax agency ATIB; the scale has applied since 1 January 2023.

What applies to a new-build from a developer?

Instead of ITP, buyers pay 10 % IVA on the price plus stamp duty of 1.5 % — or 2 % once the property value reaches €1,000,000. Notary, registry and advisory costs come on top, as with a resale purchase.

Who pays the estate agent in Mallorca?

Customarily the seller — the commission is normally agreed in the listing mandate and paid out of the purchase price. The binding statement is always the one in the exposé and the purchase contract.