Buying property in Mallorca is an exciting step — but before you make an offer, it is important to understand the full picture of what you will pay. Beyond the purchase price, there are taxes and fees that every buyer needs to account for. None of them are surprising once you know what to expect, and with the right preparation, the process is straightforward.
This guide covers the main costs involved so you can plan with confidence.
Property Transfer Tax for resale properties
If you are buying a resale property — one that has been previously owned — you will pay Property Transfer Tax, known in Spain as ITP (Impuesto sobre Transmisiones Patrimoniales). In the Balearic Islands, this tax is calculated progressively based on the purchase price.
The current rates are:
| Purchase price | Tax rate |
|---|---|
| Up to €400,000 | 8% |
| €400,001 – €600,000 | 9% |
| €600,001 – €1,000,000 | 10% |
| €1,000,001 – €2,000,000 | 12% |
| Above €2,000,000 | 13% |
The progressive system means each rate applies only to the portion of the price within that band — not to the total purchase price.
Example: on a €500,000 purchase, you would pay 8% on the first €400,000 (€32,000) and 9% on the remaining €100,000 (€9,000) — a total ITP of €41,000.
One important detail: since 2022, the Spanish tax authorities use an official reference value (Valor de Referencia) as the minimum taxable base. If the agreed purchase price is lower than this official value, ITP is still calculated on the higher figure. Your lawyer will be able to check this in advance for any property you are considering.
VAT and stamp duty on new-build properties
If you are purchasing a newly built property directly from a developer, VAT (IVA) applies instead of ITP. For residential properties the rate is 10%. For land, commercial properties and some garage spaces, VAT of up to 21% may apply.
In addition to VAT, new-build buyers in the Balearic Islands must also pay stamp duty (Actos Jurídicos Documentados — AJD) at 1.5% of the purchase price. This applies to the notarised deed and is separate from VAT.
It is worth clarifying the property type with your lawyer early in the process so you know exactly which taxes apply to your purchase.
Notary and property registry fees
All property purchases in Spain must be completed before a notary, who prepares the official deed of sale. The deed is then registered at the land registry. These costs — including stamp duty for resale properties — typically amount to around 1% of the purchase price.
Legal fees
Most international buyers choose to work with an independent lawyer to handle the legal aspects of the transaction. This includes due diligence on the property, reviewing contracts, and ensuring the purchase is completed correctly. Legal fees are typically around 1% of the purchase price, though this can vary depending on the complexity of the transaction.
Working with a good lawyer is one of the most important decisions you will make in the buying process. If you would like a recommendation, we are happy to connect you with trusted professionals we work with regularly.
Agency fees
In Mallorca, the agency commission is paid by the seller, not the buyer. As a buyer, you pay no agency fee.
What to budget for in total
As a general guide, buyers should plan for additional costs of approximately 10–13% on top of the purchase price, depending on whether the property is a resale or new build, and the price band it falls into.
A note on accuracy
Tax rates and regulations can change, and the exact costs of your purchase will depend on the specific property and circumstances. This guide is intended as a general overview. For precise figures and legal advice tailored to your situation, we recommend speaking with a qualified lawyer before proceeding.
We would be happy to recommend trusted legal professionals who work regularly with international buyers in Mallorca. Get in touch and we will point you in the right direction.
We also have a complete guide for buying property 2026.