BUYER GUIDE · REVIEWED SEPTEMBER 2026
Costs and taxes when buying property in Mallorca
A practical way to budget beyond the asking price—without relying on a single percentage that may be wrong for your property.
Your acquisition budget should separate purchase tax, legal and registration costs, finance costs, technical checks and immediate property work. The applicable tax route depends principally on the transaction and property—not simply on the buyer being foreign.
Resale property: transfer tax
Resale purchases in the Balearic Islands are generally subject to Impuesto sobre Transmisiones Patrimoniales, or ITP. The Balearic tax agency publishes a progressive general tariff. At the time of review, bands rise with property value, while reduced rates or benefits have strict conditions.
Always verify the current table and eligibility directly with ATIB and obtain a written calculation for the precise transaction.
New-build property
A first transfer from a developer normally follows a VAT and stamp-duty route rather than resale ITP. Confirm whether parking, storage or other elements are included and how each is treated. Your lawyer should state the tax base, rate and filing responsibility in writing.
Professional and completion costs
Independent lawyer
Due diligence, contracts, completion, tax filing and registration scope should be clear in the quote.
Notary and Registry
Fees depend on the deed and transaction. Registration protects the recorded ownership position.
Technical survey
Scope varies widely. Rural homes, structural concerns and planned works justify deeper investigation.
Finance and valuation
Allow for valuation, banking and mortgage costs that apply to your case, plus currency risk if funds are not in euros.
Costs buyers often miss
- Community fees, approved works and possible special assessments.
- IBI, waste charges, insurance and utilities.
- Immediate furniture, repairs, security and climate-control work.
- Garden, pool, land and property management while absent.
- Renovation licences, professional fees and difficult site access.
For a rural purchase, read buying a finca in Mallorca. For the full sequence, see our Mallorca buying guide.
How to create a safer budget
- Separate the property price from acquisition costs.
- Request a written tax calculation using the current rules and relevant taxable value.
- Add legal, technical and financing quotes.
- Estimate first-year running costs and immediate works.
- Keep a contingency that reflects the building’s condition and complexity.
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