When preparing to buy a home, one of the biggest investments we make in our lives, you need to budget not only for the property’s price but also for all the associated costs, including certain taxes. At Inmogestión Balear, we break down how much it costs to buy a home in Mallorca.
How much does it cost to buy a home in Mallorca?
First, there are the purchase and sale costs, which include:
- Notary fees: are incurred when formalising the sale in a public deed. The fee scales are regulated, and the amount depends on the property’s value, the contents of the deed and other factors. Request a quote for the specific transaction.
- Land Registry fees: are regulated, like notary fees, and cover entering the deed in the Land Registry. The amount depends on the transaction’s details and should be quoted for the individual case.
There are also optional costs, including:
- Estate agency fees: if the buyer hires an agency for advice or a property search, the fees and who must pay them should be set out in the contract. Selling fees agreed by the seller are not automatically passed on to the buyer.
- Administrative agency fees: if professionals are hired to handle the paperwork and tax payments, the cost depends on the services agreed and the firm chosen. It is advisable to request an itemised quote.
Finally, you must include tax costs:
- VAT (IVA): for supplies of homes subject to this tax, the general rate is 10%. At the time of this review, the 4% rate applies to VPO housing under the special regime or public-promotion housing, not to all protected housing.
- Stamp duty on documented legal acts (AJD): in the Balearic Islands, the general rate is 1.5%. A 2% rate applies to acquisitions of properties valued at €1,000,000 or more. Other special cases and reduced rates are subject to conditions, so the rate applicable to the transaction must be checked.
- Property transfer tax (ITP): if the property is a resale home. In the Balearic Islands, the general scale is progressive, with bands taxed at 8%, 9%, 10%, 12% and 13%. Reduced rates and reliefs depend on the current requirements and limits, so a reduction cannot be assumed simply because it is a first home.
Conclusions
Buying a home in Mallorca involves considering not only the property’s price, but also additional costs ranging from notary and Land Registry fees to applicable taxes. These costs can add considerably to the initial outlay and must be taken into account when planning a home purchase. A detailed assessment of all these aspects is therefore essential to make informed financial decisions and ensure a successful property transaction. At Inmogestión Balear, we are committed to providing clear, transparent information on the costs associated with buying a home in Mallorca, helping our clients make well-informed decisions at every stage of the process.
For more help planning your budget and preparing to sign, see Taxes when buying a home in Mallorca and Documents needed to buy a home in Spain.
