Table of Contents
- The Golden Rule: Budget 10 to 14 Per Cent Above the Purchase Price
- Property Transfer Tax (ITP) for Resale Properties
- VAT and Stamp Duty for New-Build Properties
- Notary Fees
- Land Registry Fees
- Legal Fees: The Case for Independent Representation
- The NIE Number
- Worked Cost Examples When Buying Property in Mallorca
- Ongoing Ownership Costs After Buying Property in Mallorca
- The Deposit Contract (Contrato de Arras)
- Working with Imperial Properties When Buying in Mallorca
Buying Property in Mallorca in 2026: The Complete Cost Guide
Buying property in Mallorca is one of the most rewarding decisions an international buyer can make, and one of the most consistently misunderstood when it comes to the true total cost. The asking price on the listing is only the starting point. In the Balearic Islands, the combination of transfer taxes, stamp duty, notary fees, legal costs and ongoing ownership charges adds a meaningful layer on top of the purchase price — and the structure of those costs differs depending on whether you are buying a resale property or a new build. This guide sets out every cost in clear terms, with worked examples across the price brackets most relevant to the Mallorca market, so that anyone buying property in Mallorca in 2026 can budget with confidence from day one.
The Golden Rule: Budget 10 to 14 Per Cent Above the Purchase Price
The most reliable rule of thumb for buying property in Mallorca is to budget an additional 10 to 14 per cent on top of the agreed purchase price to cover all taxes, fees and associated costs. For a resale property, the figure tends to sit closer to 12 to 14 per cent due to the progressive structure of the Balearic transfer tax. For a new build, the structure is different but the total is broadly similar, typically 12 to 13 per cent when VAT and stamp duty are combined with legal and notary costs.
Property Transfer Tax (ITP) for Resale Properties
When buying property in Mallorca as a resale (second-hand) purchase from a private seller, the largest single additional cost is the Impuesto de Transmisiones Patrimoniales, known as ITP. This is calculated on a progressive scale based on the total purchase price, with each band taxed at a different rate. The current Balearic Islands ITP scale is as follows:
| Purchase Price Band | ITP Rate |
|---|---|
| Up to €400,000 | 8% |
| €400,001 to €600,000 | 9% |
| €600,001 to €1,000,000 | 10% |
| €1,000,001 to €2,000,000 | 12% |
| Above €2,000,001 | 13% |
It is important to understand that ITP is progressive, meaning each band only applies to the portion of the price that falls within it — not the full purchase price. So when buying property in Mallorca at €1,500,000, you pay 8% on the first €400,000, 9% on the next €200,000, 10% on the next €400,000, and 12% on the remaining €500,000 — not 12% on the entire amount. ITP must be settled with the Balearic Tax Agency within 30 days of signing the public deed before a notary.
A reduced ITP rate of 4% applies for buyers purchasing a primary residence for their own habitual use, provided the property price does not exceed €270,151.20 and other qualifying conditions are met. This reduced rate is not available to second-home or investment buyers.
VAT and Stamp Duty for New-Build Properties
When buying property in Mallorca that is a new build or first transfer from a developer, ITP does not apply. Instead, the buyer pays Value Added Tax (IVA) at 10% of the purchase price, plus Stamp Duty (Actos Jurídicos Documentados, or AJD). In the Balearic Islands, the AJD rate is 1.2% of the purchase price for most properties, rising to 1.5% for properties above €1,000,000. The total tax burden on a new build is therefore broadly 11.2% to 11.5%, making it slightly lower than a comparable resale purchase at the higher price bands. Both IVA and AJD must be paid within 30 days of signing the public deed.
Notary Fees
Every property purchase in Spain must be completed before a notary, who drafts and certifies the public deed of sale. Notary fees in Spain are regulated by the government and therefore broadly consistent. When buying property in Mallorca, buyers should budget between €600 and €2,000 for notary fees, depending on the complexity and value of the transaction. For high-value luxury purchases above €2,000,000, fees at the higher end of this range are standard. Notary fees are customarily paid by the buyer, though this is in principle negotiable between the parties.
Land Registry Fees
After the public deed has been signed before the notary, the property must be formally registered in the buyer's name at the Land Registry. Land Registry fees in the Balearic Islands typically range from €300 to €1,200, depending on the value of the property. A property at €500,000 typically incurs a registration fee of around €700 to €900. Registering the property is a legal requirement and protects the buyer's ownership rights against any future dispute or claim.
Legal Fees: The Case for Independent Representation
Engaging an independent Spanish property lawyer is strongly recommended for all buyers, and particularly for non-resident international buyers purchasing property in Mallorca. A qualified lawyer will conduct due diligence on the property — verifying legal ownership via the Nota Simple from the Land Registry, checking for outstanding mortgages, charges or encumbrances, confirming planning compliance and the existence of any building licence irregularities, and reviewing the terms of the purchase contract before any deposit is paid.
Legal fees for buying property in Mallorca typically run to around 1% of the purchase price, with a practical minimum of around €2,500 and an upper range of €8,000 to €15,000 for complex transactions involving high-value properties, company structures or simultaneous mortgage arrangements. This fee is among the best-value protections available in any property transaction.
The NIE Number
Every non-Spanish buyer purchasing property in Mallorca must hold a Número de Identidad de Extranjero (NIE) — a Spanish tax identification number for foreign nationals. Without an NIE it is not possible to complete a property purchase, open a Spanish bank account, pay taxes or sign official documents. An NIE can be obtained directly from the Spanish Consulate in the buyer's home country or from the Foreigners' Office in Mallorca. Many buyers choose to grant a Spanish lawyer Power of Attorney to apply for the NIE on their behalf, which allows the entire purchase process to be managed remotely if needed.
Worked Cost Examples When Buying Property in Mallorca
The following examples illustrate the total additional costs a buyer should budget when buying property in Mallorca at different price points, assuming resale purchases:
| Purchase Price | ITP (Progressive) | Notary / Registry | Legal Fees (~1%) | Total Extra Costs | Total to Budget |
|---|---|---|---|---|---|
| €750,000 | ~€77,000 | ~€2,000 | ~€7,500 | ~€86,500 (~11.5%) | ~€836,500 |
| €1,500,000 | ~€168,000 | ~€2,500 | ~€12,000 | ~€182,500 (~12.2%) | ~€1,682,500 |
| €3,000,000 | ~€368,000 | ~€3,000 | ~€15,000 | ~€386,000 (~12.9%) | ~€3,386,000 |
Ongoing Ownership Costs After Buying Property in Mallorca
Once the purchase is complete, buying property in Mallorca involves a set of annual ownership costs that buyers should factor into their long-term budget. The most significant are:
IBI (Impuesto sobre Bienes Inmuebles) is the annual municipal property tax, calculated by each municipality based on the cadastral value of the property. In practice, IBI for a property in the Calvià or Andratx area typically runs between €3,000 and €8,000 per year for properties at the premium end of the market, though this varies significantly by cadastral value and municipality.
Non-Resident Income Tax (IRNR) applies to all non-resident property owners in Spain. Even if the property is not rented out, the Spanish tax authority deems a notional rental income equivalent to 1.1% of the cadastral value and applies a 19% tax rate for EU residents (24% for non-EU residents) to this deemed amount. The resulting annual tax liability is modest in most cases but must be filed annually.
Wealth Tax applies in the Balearic Islands to assets above €3,000,000 per person. The Balearic Government raised this threshold in 2024 from €700,000, meaning the majority of buyers in the sub-three-million bracket carry no wealth tax liability on their Mallorca property.
Community fees apply to any property forming part of a development with shared facilities such as a pool, gardens or security. These vary considerably from a few hundred euros per year for simple developments to €5,000 or more annually for premium managed communities with full concierge and maintenance services.
Utilities and maintenance for a three-to-four-bedroom villa in the southwest typically run to around €250 per month for electricity, water and basic services, with additional seasonal costs for pool maintenance, garden upkeep and any alarm monitoring service.
The Deposit Contract (Contrato de Arras)
When buying property in Mallorca, once a price has been agreed, the standard next step is the signing of a private deposit contract (contrato de arras penitenciales), typically accompanied by a deposit of 10% of the agreed purchase price. Under this structure, if the buyer withdraws without legal justification, the deposit is forfeited. If the seller withdraws, they are obliged to return double the deposit to the buyer. The arras contract and its terms should always be reviewed by the buyer's independent lawyer before signing.
Working with Imperial Properties When Buying in Mallorca
At Imperial Properties, we have guided international buyers through the process of buying property in Mallorca for many years. From identifying the right property and area to structuring the search programme, coordinating due diligence and managing the process through to completion, we are committed to making the experience of buying property in Mallorca as straightforward and well-informed as possible. Contact us directly to begin a conversation about your requirements and the areas of the island that best suit your lifestyle and investment objectives.
