ITP and Property Transfer Tax on Mallorca

Transfer tax (ITP) when buying a resale property in Mallorca is 8% up to €400,000, 9% up to €600,000, 10% up to €1,000,000, 12% up to €2,000,000 and 13% above that, in each case only on the part within the band. On a purchase price of €750,000 that is about €65,000, an average of around 8.7%. New builds from a developer are instead subject to 10% IVA plus 1.5% AJD (2% from €1m). As at October 2026.

This refers to the Transmisiones Patrimoniales Onerosas category within the Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados, ITPAJD for short. The calculator above this article helps you estimate the general ITP burden for property in Mallorca using the current Balearic scale.

What is ITP in Mallorca?

ITP is the tax on transfers of assets for consideration. For property purchases in Mallorca it mainly concerns the purchase of a second-hand apartment, finca, villa or house. In principle the buyer is liable for the tax, not the seller. The Balearic tax agency ATIB is responsible because the property is located in the Balearic Islands. The general scale applies regardless of the buyer's nationality and residence.

When does ITP apply?

ITP typically applies when a property in Mallorca is sold as a resale property, that is, when buying from a private individual or on resale by a business. No ITP in the TPO category normally applies when buying a new property directly from the developer as a first supply. In that case IVA is charged instead, and AJD is regularly payable on the notarial deed as well.

How high is ITP in Mallorca? The current scale

The general ITP scale of the Illes Balears ranges from 8% to 13% and is calculated progressively. Each rate applies only to the part of the value that falls within the relevant band (as at October 2026, according to ATIB):

The calculator above uses this progressive logic: the whole purchase price is not taxed at the highest rate, only the relevant part within each band.

How is ITP calculated? Worked examples

ITP on a purchase at €750,000 is about €65,000: €400,000 × 8% = €32,000, €200,000 × 9% = €18,000 and €150,000 × 10% = €15,000. The following table shows further examples. The key point is that each band is calculated only on its own part.

ATIB describes the calculation using an average rate rounded to two decimal places. This can cause differences of a few euros on individual amounts, for example about €65,025 (8.67%) instead of €65,000 on €750,000. The final amount is calculated by Modelo 600.

Tax base: purchase price or Valor de Referencia?

For ITP, the highest of three values counts: the purchase price, the value declared in the deed or the Valor de Referencia. Since 2022, the cadastre's Valor de Referencia has been decisive for Spanish property. So if the purchase price is €650,000 but the Valor de Referencia is €700,000, the ITP calculation should in principle be based on €700,000.

The Valor de Referencia is not the same as the traditional cadastral value used for IBI property tax. It is determined every year by the cadastre from notarial and registered market data and can be looked up through the electronic cadastre office. The cadastre published the values for 2027 on 25 September 2026.

The Spanish Constitutional Court declared the system constitutional in judgment 13/2026 of 12 February 2026. It also points to the possibility of determining the tax base directly in individual cases. If you think the Valor de Referencia is too high, clarify this with a lawyer or tax adviser before filing Modelo 600.

Resale property vs. new build

Resale property: the classic resale of a property in Mallorca is regularly subject to ITP. The buyer declares and pays the tax at ATIB using Modelo 600.

New build from a developer: the first supply of a new apartment or house by the developer is in principle subject to IVA. For residential property the IVA rate is generally 10%, or 4% for certain publicly subsidised homes. A purchase from the developer after completion counts as a first supply, unless the home was previously used continuously by others for at least two years. AJD is also regularly payable on the notarial deed. On a net price of €750,000, that is €75,000 IVA.

ITP, IVA and AJD: the main differences

• ITP: applies to second-hand property and to transfers for consideration that are not subject to IVA.
• IVA: applies to new property from the developer, that is, on the first supply.
• AJD: applies to certain notarial deeds. On a new-build purchase with IVA, AJD is in practice the additional documentary tax item.

In the Balearic Islands, AJD on new, IVA-liable property purchases is generally 1.5%. Since 14 June 2026, reduced AJD rates (1% and 0.5% respectively) apply to owner-occupied first homes under certain conditions, along with a 100% bonus for buyers under 30. They do not apply to second homes and holiday homes.

Which reduced ITP rates are there?

Reduced ITP rates of 4% or 2% apply in Mallorca only if the property becomes the buyer's main residence. For second homes, holiday homes and investment properties the general scale applies. Since 14 June 2026, the value limit for these reliefs in Mallorca has been €331,859.70 (previously €307,089, and before that €270,151.20). However, the reduced rates apply only to the first €270,151.20 of the value, and the rest is taxed at 8%.

• 4% for certain main residences: possible if the home becomes the main residence, the buyer acquires at least 50% and does not own another home to the extent of at least 50%.
• 2% for certain groups of buyers: among others for buyers under 36 on their first main residence and in certain family or disability cases.
• 100% bonus: for the first main residence of buyers under 30 or people with a disability of 33% or more. Conditions include three years' residence in the Balearic Islands, an income limit of €52,800 (€84,480 for joint filing) and a mortgage loan of at least 60% of the appraised value. The bonus applies to the first €270,151.20 of the value.
• Garages separately: for stand-alone garages, ATIB applies its own scale of 8% up to €30,000 and 9% above that. Up to two garages belonging to an apartment follow the general scale.

An example: a buyer purchases an apartment for €300,000 as a main residence and meets all the conditions for the 4% rate. That gives €270,151.20 × 4% = €10,806.05 and €29,848.80 × 8% = €2,387.90, together €13,193.95. Under the general scale it would be €24,000.

These reliefs are not blanket discounts. They must be checked in each individual case and declared correctly. If you later no longer meet the conditions, you have to pay the difference.

When and how is ITP paid? Modelo 600 and deadline

ITP must be declared and paid at ATIB using Modelo 600 within one month of the date of the notarial deed. In the Balearic Islands, both ITP and AJD are handled using Modelo 600. Plan for the amount before the notary appointment as part of the buying costs.

None of this information replaces a review of your individual case. Have the tax rate, tax base and any possible reliefs confirmed by your lawyer or tax adviser before buying.