In short: you will need an NIE and a Spanish bank account. On a resale home you pay Balearic transfer tax (ITP) of 8% to 13% in bands according to price; on a new build, 10% VAT plus 1.5% stamp duty (AJD) (2% from one million). Allow roughly 1–2% for notary, land registry and administration. Since April 2025, buying a home no longer qualifies for a golden visa.
What you need before buying
- NIE (foreigner identification number). It is required to sign the deed and pay taxes.
- A Spanish bank account, to pay taxes, utilities and the annual property tax (IBI).
- Power of attorney, if you cannot attend the signing. It is granted before a notary in your country or at a Spanish consulate.
- Documented source of funds. The notary and the bank will ask for it under anti-money-laundering rules.
Purchase taxes in the Balearic Islands
Resale property: transfer tax (ITP)
Transfer tax is charged on a progressive scale. The base is the higher of the deed price and the Land Registry (Catastro) reference value.
| Value band | Rate |
|---|---|
| Up to €400,000 | 8% |
| €400,000 – 600,000 | 9% |
| €600,000 – 1,000,000 | 10% |
| €1,000,000 – 2,000,000 | 12% |
| Over €2,000,000 | 13% |
Each rate applies only to the part of the value within its band. Reduced rates exist for residents buying a first main home under price caps that most high-end properties in Ibiza exceed.
New build bought from a developer: VAT and AJD
No ITP is due. Instead you pay 10% VAT on the price plus stamp duty (AJD): 1.5% in general and 2% if the value is one million euros or more.
Purchase costs
Notary, land registry and administration usually add up to around 1–2% of the price. With a mortgage, add the valuation and the bank’s fees.
Checks before signing
- Land Registry extract (nota simple): owner, charges, mortgages and liens.
- Legality of what is built: what exists must match the permits. Unlicensed extensions, pools or outbuildings are common, especially on rural land, and can block future legalisation or renovation.
- Habitation certificate and energy certificate.
- Holiday rental licence, if you plan to let: in Ibiza these are very limited and not every home can obtain one. Do not assume you will be able to rent short term.
- IBI and community fees paid up to date.
How the process works
- Reservation with a small deposit to take the property off the market.
- Deposit contract (arras), usually 10% of the price. If the buyer withdraws, the deposit is lost; if the seller withdraws, they return it twice over.
- Deed before a notary and payment of the balance.
- Tax settlement and registration at the Land Registry.
If the seller is also a non-resident, you as the buyer must withhold 3% of the price and pay it to the Spanish tax agency within the following month. The notary checks this at signing.
Annual taxes as a non-resident owner
- IBI, the municipal property tax.
- Non-Resident Income Tax. If the house is not let, the tax agency deems an income of 1.1% or 2% of the cadastral value, taxed at 19% for EU/EEA residents and 24% for others. If it is let, rental income is declared: 19% on net income (EU/EEA) or 24% on gross income (others).
- Wealth tax, depending on your total assets in Spain. Review it with your tax adviser before buying, because how you buy (personally or through a company) changes the outcome.
About the golden visa
Since April 2025, buying a home in Spain no longer gives access to residence by investment. Visas granted earlier remain valid under their transitional rules. If you need to reside in Spain, other routes have to be considered.
Frequently asked questions
Can a foreigner buy a house in Ibiza?
Yes. You need an NIE and, in practice, a Spanish bank account. The purchase is signed before a notary like any resident’s.
What taxes do you pay when buying a house in Ibiza?
On a resale, Balearic transfer tax in bands: 8% up to €400,000, then 9%, 10%, 12% and 13% above €2 million. On a new build, 10% VAT plus 1.5% stamp duty (2% from one million). Plus around 1–2% for notary, registry and administration.
Does buying a house in Spain give you residency?
Not any more. Since April 2025 no new golden visas are granted for buying property.
This guide is general information. It is not tax or legal advice for your specific case: figures and rules change, and they should be confirmed before signing anything.
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