Buying Costs When Purchasing Property in Mallorca

Buying costs in Mallorca are usually around 10 to 13% of the purchase price for a resale property and around 13% for a new build from a developer. For resale, the largest item is ITP transfer tax (8 to 13%, calculated in bands); for a new build it is IVA of 10% plus AJD of 1.5%, or 2% from a value of €1,000,000. As at October 2026. The percentages come from the worked examples below and exclude financing.

When buying property in Mallorca, the budget is more than just the purchase price. One-off costs arise for taxes, notary, Registro, legal review and, if you finance the purchase, bank costs. The ongoing costs after the purchase are covered in the guide to the total costs of owning a property in Mallorca.

Which costs arise when buying property in Mallorca?

When you buy, you mainly pay taxes (ITP, or IVA plus AJD), plus officially regulated fees for the notary and Registro and freely agreed fees for the lawyer and Gestoría. The table shows all items with their rate or range and source.

Resale property or new build: which tax applies?

On a resale property the buyer pays ITP; on a new build from a developer the buyer pays 10% IVA plus AJD instead. A new build in the tax sense (first sale) is a purchase from the developer after completion, as long as the property has not been used continuously by others for at least two years.

How high is transfer tax (ITP) in Mallorca?

In Mallorca, ITP is 8% on the first €400,000, 9% on the part up to €600,000, 10% up to €1,000,000, 12% up to €2,000,000 and 13% on the part above that. This is the general Balearic scale for resale properties. For a quick estimate, use the ITP and property transfer tax page with calculator.

Is ITP calculated in bands or at a single rate?

ITP is calculated in bands: each rate applies only to the part of the price within its band, not to the whole purchase price. ATIB calls this the average rate from the tariff table; the result is the sum of the partial amounts.

The tax base is the highest of the purchase price, the value declared in the deed and the reference value from the land registry (valor de referencia). If there is no reference value, the higher of the purchase price, the declared value and the market value applies.

Reduced rates of 4% and 2% apply only if the property becomes the buyer's main residence and is worth no more than €270,151.20. The 100% bonus for people under 30 or people with a disability of 33% or more additionally requires three years' residence in the Balearic Islands. For holiday homes and second homes these rules are irrelevant. Have special cases checked individually by a tax adviser.

How much does a notary cost when buying property in Mallorca?

For a purchase at €750,000 a notary costs about €573 and at €1,500,000 about €787, in each case plus 21% IVA, folios, copies and disbursements. The fee is set uniformly throughout Spain in the Arancel (Real Decreto 1426/1989): €90.15 up to a value of €6,010.12, above that 4.5‰, 1.5‰, 1‰ and 0.5‰ per band, and from €601,012.10 0.3‰, less 5%.

By law the seller bears the cost of the deed and the buyer the first copy. In practice the buyer often pays everything. How the appointment works is explained in the guide to the notary appointment.

How much does registration at the land registry cost?

Registration at the Registro de la Propiedad costs about €320 on €750,000 and about €462 on €1,500,000, in each case plus 21% IVA. The basis is the Arancel of the Registradores (Real Decreto 1427/1989): €24.04 up to a value of €6,010.12, above that 1.75‰, 1.25‰, 0.75‰ and 0.30‰ per band, and from €601,012.10 0.20‰, less 5%. A maximum of €2,181.67 is possible per registration. The person in whose favour the entry is made pays, that is the buyer.

Do you need a lawyer to buy in Mallorca, and what does it cost?

A lawyer is not required by law when buying property, but for international buyers in Mallorca it is very much advisable in practice. The fee is freely negotiable and is typically 1 to 1.5% of the purchase price plus 21% IVA. On €750,000 at 1% that is €7,500 plus €1,575 IVA, a total of €9,075.

The review typically covers title deeds, charges, building permits, usage status, cadastre and land registry data, community debts, tax risks, the purchase contract, the Arras contract and powers of attorney. It is important to engage the lawyer in writing. Who handles what is explained in the guide to the lawyer, notary, tax adviser and estate agent.

Which bank and financing costs arise with a mortgage?

On a new mortgage the borrower pays the Tasación (valuation of the property), while the bank pays the notary, Registro, Gestoría and AJD on the mortgage deed. This has applied since the mortgage credit law Ley 5/2019. You pay for any copies you request yourself. An arrangement fee may apply if it is agreed in the loan offer. More on financing can be found in the guide to mortgages in Mallorca.

Which other one-off costs are there?

A Gestoría that handles the tax and registry formalities costs around €300 to €350 in a standard case, more for non-residents. Depending on the buyer's profile, you may also face NIE applications, certified translations, interpreters, powers of attorney, technical surveys, an architect's review or a land survey. The estate agent's commission is not included in the examples below. Clarify who bears it before signing the contract. If the seller is not tax resident in Spain, you must withhold 3% of the purchase price and pay it over using Modelo 211 (payment on account of the seller).

What does it cost to buy a resale property for €750,000?

At €750,000, the buying costs of a resale property are about €75,800, or about 10.1% of the purchase price. ITP in bands: €400,000 at 8% is €32,000, €200,000 at 9% is €18,000 and the remaining €150,000 at 10% is €15,000. That gives €65,000 (about 8.7%).

Total cost: about €825,800. With 10% on the whole price (€75,000), ITP would be €10,000 too high.

What does it cost to buy a resale property for €1,500,000?

At €1,500,000, the buying costs of a resale property are about €170,000, or about 11.4% of the purchase price. ITP in bands: €32,000 + €18,000 + €400,000 at 10% (€40,000) + €500,000 at 12% (€60,000) gives €150,000 (10%).

Total cost: about €1,670,300. With 12% on the whole price (€180,000), ITP would be €30,000 too high.

What do you pay on a new build: IVA and AJD?

On a new build you pay 10% IVA plus AJD. On €750,000 that is about €86,250 (€75,000 IVA plus €11,250 AJD at 1.5%), and on €1,500,000 about €180,000 (€150,000 IVA plus €30,000 AJD at 2%). The higher AJD rate of 2% applies if the value of the property is at least €1,000,000. The examples calculate AJD on the purchase price; the notary will confirm the base. For a main residence up to €270,151.20 a reduced AJD rate of 1% applies. On €1,500,000, taxes on a new build are therefore 12% rather than the 10% on resale. With notary, Registro, lawyer and Gestoría, buying costs on a new build come to about 13%.

How do I plan the budget for buying costs?

For a resale property, ITP is the starting point for budget planning; for a new build it is IVA plus AJD. Notary, Registro, lawyer and, where applicable, financing costs come on top. The information does not replace tax or legal advice. Have your case reviewed by a tax adviser or lawyer.