Cost of Buying Property in Mallorca
How much does it cost to buy property in Mallorca?
On a resale, budget roughly 10–13% of the price on top for taxes and fees; on a new-build a little less, once you weigh VAT against transfer tax. The largest single cost is the transfer tax (ITP).
Mallorca transfer tax (ITP) — the 2026 scale
ITP on a resale is charged on a progressive Balearic scale, per band: 8% up to €400,000; 9% from €400,001 to €600,000; 10% from €600,001 to €1,000,000; 12% from €1,000,000 to €2,000,000; and 13% above €2,000,000. For example, a €900,000 home is taxed 8% on the first €400,000, 9% on the next €200,000 and 10% on the final €300,000.
New-build: VAT and stamp duty instead of ITP
A brand-new home bought from the developer carries 10% IVA (VAT) plus AJD stamp duty of roughly 1.2–2% in the Balearics. Plots and commercial units can carry 21% IVA.
The other buying costs
- Notary: about €600–€2,500 (federal fee scale).
- Land Registry: about €600–€2,200.
- Independent lawyer: about 0.5–1.5% plus 21% VAT.
- Gestoría and extras: about €300–€1,000.
- Mortgage: a bank valuation fee; since Ley 5/2019 the mortgage stamp duty (AJD) is paid by the bank, not the buyer.
What is the tax based on?
Transfer tax is calculated on the higher of the purchase price and the official reference value (valor de referencia) — check it before you commit.
Related guides
See where to buy in Mallorca, the live market report, and how to buy as a foreigner.