What does ITP mean?
ITP commonly refers to Impuesto sobre Transmisiones Patrimoniales Onerosas, the transfer-tax element of Spain’s broader ITPAJD system. For property buyers it is generally relevant when acquiring a resale home rather than a qualifying new-build sale subject to VAT.
Who pays ITP?
The buyer is generally responsible for filing and paying the tax. In Mallorca, the competent regional authority is the Agència Tributària de les Illes Balears (ATIB).
How is it calculated?
The applicable rate and taxable base depend on Balearic rules and the circumstances of the purchase. Progressive bands, reliefs or special conditions may apply. The cadastral reference value can also be relevant to the taxable base. Because rates and thresholds can change, this page does not substitute for a current calculation.
What buyers should verify
- Whether the transaction is taxed as a resale or new build.
- The Balearic rate and any relief applicable on the tax date.
- The declared price and any applicable reference value.
- The filing deadline and correct tax form.
- Whether ownership shares or special buyer circumstances affect the filing.
ITP is not the full buying cost
Budget separately for legal advice, notary, registry, valuation, survey, finance and other transaction costs. New-build transactions follow a different tax treatment involving VAT and potentially AJD.
Get a current calculation
Ask a qualified tax adviser or independent lawyer to confirm the current Balearic rules for the specific property and buyer. Use official ATIB information rather than an old percentage quoted in a listing or generic article.
Related concepts
Read nota simple, contrato de arras and Costs and taxes when buying in Mallorca.