Mallorca Property Taxes in 2026
Buying property in Mallorca remains one of the most attractive investments in Europe, whether you are searching for a luxury villa, a seafront apartment, a country finca, or a holiday home. However, understanding the taxes and additional costs involved is essential before making an offer.
This updated 2026 guide explains the main property taxes in Mallorca, purchase costs, ongoing ownership taxes, and the expenses international buyers should budget for when acquiring real estate in the Balearic Islands.
Taxes are only one part of the transaction. Our Mallorca buyer’s guide sets out the wider purchase process and due diligence questions.
How Much Are Property Purchase Costs in Mallorca?
As a general rule, buyers should budget between 10% and 15% of the purchase price for taxes and associated acquisition costs. The exact amount depends on whether the property is a resale or a new-build home.
Typical costs include:
Property Transfer Tax (ITP)
VAT (IVA) on new-build properties
Stamp Duty (AJD)
Notary fees
Land Registry fees
Legal fees
Mortgage-related costs (if applicable)
Property Transfer Tax (ITP) in Mallorca 2026
When buying a resale property in Mallorca, buyers must pay Property Transfer Tax (Impuesto sobre Transmisiones Patrimoniales – ITP).
The Balearic Islands apply a progressive tax scale:
Property ValueITP Rate
Up to €400,0008%€400,001 – €600,0009%€600,001 – €1,000,00010%€1,000,001 – €2,000,00012%Over €2,000,00013%
These rates are applied progressively rather than as a flat percentage on the entire purchase price.
Example
For a property purchased at €1,500,000, the tax is calculated in bands, with each portion taxed at the corresponding rate. Because Mallorca’s luxury market contains many properties above €1 million, calculating ITP correctly is particularly important.
VAT (IVA) on New-Build Properties
If you buy a newly built property directly from a developer, ITP does not apply.
Instead, buyers pay:
10% VAT (IVA)
1.5% Stamp Duty (AJD)
This generally results in acquisition taxes of approximately 11.5% before legal and registration costs are added.
Stamp Duty (AJD)
Stamp Duty, known as AJD (Actos Jurídicos Documentados), is payable on new-build purchases and certain mortgage transactions.
In the Balearic Islands, AJD is currently 1.5% of the declared purchase value.
Notary and Land Registry Fees
All Spanish property transactions must be formalised before a public notary.
Buyers should typically budget:
Notary fees: approximately 0.1%–0.5%
Land Registry fees: approximately 0.1%–0.3%
The exact amount depends on the property value and complexity of the transaction.
Legal Fees
Hiring an independent property lawyer in Mallorca is highly recommended.
Legal fees generally range from 1% to 1.5% of the purchase price plus VAT, depending on the scope of services provided.
A specialist lawyer will:
Verify ownership
Review contracts
Check planning permissions
Identify debts or charges
Ensure compliance with local regulations
For international buyers, legal representation provides valuable protection throughout the transaction process.
Annual Property Taxes in Mallorca
IBI (Council Tax)
IBI (Impuesto sobre Bienes Inmuebles) is the Spanish equivalent of council tax.
The amount depends on:
Property value
Municipality
Property type
Annual charges vary significantly across Mallorca’s municipalities.
Rubbish Collection Tax
Most municipalities charge a separate waste collection fee, payable annually by property owners.
Non-Resident Income Tax
Owners who are not Spanish tax residents may be liable for Non-Resident Income Tax (IRNR), even if the property is not rented.
The amount depends on residency status and property value.
Wealth Tax and Solidarity Tax
High-net-worth individuals owning significant assets in Spain may also be subject to:
Wealth Tax (Impuesto sobre el Patrimonio)
Temporary Solidarity Tax on Large Fortunes
Tax liabilities vary according to residency status, ownership structure, and total worldwide assets.
Professional tax advice is strongly recommended for buyers purchasing luxury properties in Mallorca.
Why Professional Tax and Legal Advice Matters
Property taxation in Spain can be complex, particularly for overseas buyers unfamiliar with the Spanish legal system.
Before purchasing property in Mallorca, buyers should obtain advice from:
An experienced property lawyer
A qualified tax adviser
A reputable real estate agency
This ensures all taxes are correctly calculated and helps avoid unexpected liabilities after completion.
Understanding Mallorca property taxes in 2026 is an essential part of planning a successful property purchase. Depending on whether you buy a resale property or a new-build home, acquisition taxes can range from approximately 10% to 15% of the purchase price once legal fees and registration costs are included.
Working with experienced local professionals will help you navigate the buying process, understand your tax obligations, and make your investment in Mallorca as secure and efficient as possible.
Frequently Asked Questions about Mallorca Property Taxes
Do all Mallorca purchases pay the same tax?
No. A resale purchase is generally subject to property transfer tax (ITP), while a qualifying new-build purchase typically involves VAT and stamp duty (AJD). The applicable calculation and any reliefs depend on the property and buyer, so request a written estimate before paying a deposit.
What recurring property charges should an overseas owner consider?
Owners should budget for municipal property tax (IBI), any local waste charges and ongoing maintenance. Non-resident income tax and other obligations may also apply depending on residency, use and ownership structure. A tax adviser can confirm the returns relevant to your situation.
When should I confirm purchase taxes and fees?
Ask your independent lawyer or tax adviser for an itemised estimate before signing a reservation or preliminary contract. Recheck it if the purchase price, property type or ownership structure changes.
