Spanish property tax is often the part of buying in Mallorca that surprises international buyers most — not because it's unusually high, but because it's structured differently to most home markets, with a mix of one-off transaction taxes and ongoing annual liabilities. This guide sets out exactly what non-resident buyers and owners should budget for in 2026.
Transfer Tax (ITP): The Main Purchase Cost
When you buy an existing (resale) property in the Balearic Islands, the main tax due is ITP - Impuesto sobre Transmisiones Patrimoniales, or Property Transfer Tax. It is charged as a percentage of the declared purchase value, on a progressive banded scale:
| Purchase Price Band | ITP Rate |
|---|---|
| Up to €400,000 | 8% |
| €400,001 - €600,000 | 9% |
| €600,001 - €1,000,000 | 10% |
| Above €1,000,000 | Rises further on a progressive scale |
ITP must be declared and paid to the Balearic tax authority (ATIB) within 30 working days of the notarial deed being signed - your lawyer or gestoria will typically handle this filing for you. Since 1 March 2026, the property value thresholds that govern access to certain tax reliefs have also been raised across the Balearics, with the relevant threshold for Mallorca set at €307,089 - worth checking with your adviser if your purchase sits near this figure.
New-Build Property: VAT Instead of ITP
If you buy a new-build property directly from a developer, VAT (IVA) applies at 10% instead of ITP. This is an important distinction when comparing a new-build purchase against a resale property of similar value - the headline tax rate is lower, but stamp duty (AJD) is also typically due on new-builds, so it's worth calculating the full cost either way.
Additional Purchase Costs
Beyond ITP or VAT, budget for the following one-off costs at completion:
| Cost | Typical Amount |
|---|---|
| Notary Fees | €600 - €2,000 |
| Land Registry Fees | €400 - €1,200 |
| Legal / Gestoria Fees | 1% - 1.5% of purchase price |
In total, non-resident buyers should plan for around 10-12% on top of the purchase price for a resale home, rising to 13-14% in the luxury market once every fee is accounted for.
TSB Yachting's investment division coordinates lawyers, notaries, and gestorias throughout the process, so tax filings and deadlines are handled correctly and on time - one less thing for an international buyer to manage from abroad.
Ongoing Annual Taxes for Owners
Once you own a property in Mallorca, several annual tax obligations apply, regardless of residency status:
| Tax | Who Pays | Basis |
|---|---|---|
| IBI (local property tax) | All owners | Annual, based on cadastral value, set by the local town hall |
| Non-resident income tax | Non-resident owners | Charged on notional or actual rental income, even if the property is not rented out |
| Wealth tax | Owners above regional thresholds | Applies to the net value of Spanish assets above the applicable allowance |
A local tax adviser should always confirm your exact liability, since personal circumstances - tax residency, other Spanish assets, whether the property is let - all affect the final calculation.
An Important Note on Residency
Spain's property-linked Golden Visa programme, which previously granted residency to non-EU buyers investing €500,000 or more, was formally abolished in April 2025. Buying property in Mallorca today does not, on its own, grant any Spanish residency rights. Existing Golden Visa holders from before the change are unaffected, but new buyers should not factor residency into their purchase decision.
Get Tailored Guidance for Your Purchase
Every purchase is different. Speak to TSB Yachting's investment team for guidance specific to your situation and current property opportunities in Mallorca.
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