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What taxes are payable on the purchase of a property in Mallorca?

One of the most important expenses in a real estate transaction are the taxes. In Mallorca and the Balearic Islands the taxes paid are the same as in the rest of Spain, although the percentages to be applied vary from one autonomous community to another.

The taxes are different for the buyer and for the seller. There are also differences if it is a newly built property or a used property. In this article we will focus on the taxes to be paid by the buyer.


Purchase of a new home.

The main tax payable is VAT. It is calculated on the sale price. The applicable percentage is 10%, except for social housing, which is reduced to 4%.

It should be borne in mind that if the purchase is executed in a public deed, which is highly recommended, Stamp Duty Tax must be added (social housing is exempt from this tax).

The amount of stamp duty depends on the value of the property:

Tax table

 In conclusion, when buying a newly built property in Mallorca, a minimum tax rate of 11.2% and a maximum of 12% of the value of the property must be paid if it is not a social housing property.

 

Purchase of a used home.

When buying a second (or subsequent) transfer property, the buyer must pay to the tax office of the Balearic Islands the Property Transfer Tax, the taxation of which varies according to the value of the property:


Tax table

* Provided that the purchaser does not have any other right of ownership or right of use or enjoyment in respect of any other property.

When the deed of sale is notarised, the stamp duty (Impuesto de Actos Jurídicos Documentados) must also be paid, according to the table detailed in the previous section.

 

Other tax considerations

It should be borne in mind that, from the moment a buyer becomes the owner of a property, he/she must pay the Property Tax (IBI) every year, which only affects urban properties and, as it is a municipal tax, it varies from one municipality to another in Mallorca.

Published: 04 Apr 2023
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