Taxes When Buying
*How much tax do I pay when buying a property in Mallorca? The single largest item in the ancillary costs — with the primary-source-verified Balearic ITP scale and the resolution of the AJD discrepancy (1.2 % vs. 1.5 %).*
Rule of thumb for total ancillary costs: resale property ~10–13 % of the purchase price, new build ~12–13 % (10 % IVA + AJD + notary/registry/lawyer). Worked examples below.
Which tax? ITP or IVA + AJD#
| Property | Tax |
|---|---|
Resale property (secondary market, segunda mano) | ITP (Impuesto sobre Transmisiones Patrimoniales) |
| New build / first sale from the developer | IVA 10 % + AJD (Actos Jurídicos Documentados) |
ITP Balearics — progressive scale ✅#
✅ documented — legal basis: Decreto Legislativo 1/2014 de les Illes Balears, Art. 10 (BOE-A-2014-6925), tramos of 12 %/13 % inserted by Decreto-ley 4/2023 and continued by Ley 12/2023 (2024 budget law); applies for 2025/2026.
The ITP is progressive per bracket (each portion of the value at its own rate), not a flat rate on the total price:
| Value portion (bracket) | Rate |
|---|---|
| up to 400.000 € | 8 % |
| 400.000,01 – 600.000 € | 9 % |
| 600.000,01 – 1.000.000 € | 10 % |
| 1.000.000,01 – 2.000.000 € | 12 % |
| over 2.000.000 € | 13 % |
✅ Important: the 13 % band only kicks in above 2 million € — between 1 and 2 million, 12 % applies. (A common error in secondary sources.)
Reduced rates (subject to conditions, as a rule only for residents/primary residence): 4 % for a primary residence ≤ 270.151,20 €; 2 % among others for buyers under 36, large families, disability; in part a 0 % bonificación for young first-time buyers. For foreign second-home/holiday users, as a rule not applicable.
Deadline & form: Modelo 600 at the ATIB, within 30 working days of the deed.
IVA + AJD on new builds ✅#
- IVA: 10 % on the purchase price (residential property).
- AJD general: 1.5 % ✅ — legal basis DLeg 1/2014 IB.
🔎 Discrepancy resolved: AJD 1.2 % vs. 1.5 %#
✅ clarified (DLeg 1/2014 IB): the general AJD rate of 1.5 % = Art. 15 (since 1.1.2020; previously 1.2 %); reduced 1.2 % for a first owner-occupied home ≤ 270.151,20 € = Art. 17; increased 2 % for properties ≥ 1.000.000 € or in cases of renuncia a la exención del IVA = Art. 17 bis. The 1.2 % circulating in secondary sources is therefore the reduced rate, not the general one.
Total new-build taxes: ~11.5 % (10 % IVA + 1.5 % AJD).
Valor de referencia — the tax base ✅#
✅ documented — since 1.1.2022 (Ley 11/2021, BOE-A-2021-11473; amending Art. 10 TRLITPAJD & Art. 9 LISD), the valor de referencia set by the Catastro is the minimum tax base for ITP/AJD/ISD. Tax is levied on the higher of the purchase price and the valor de referencia (regardless of the actual price).
⚖️ Challengeability — STC 13/2026 ✅#
STC 13/2026 of 12.02.2026 (Tribunal Constitucional) ✅: the valor de referencia is constitutional, but only because it is an open system with full freedom of proof — the taxpayer may rebut it with any means of evidence, in particular an expert report (informe pericial). If the valor de referencia exceeds the actual market price, ITP/AJD can be challenged (rectificación de autoliquidación → TEAR/TEAC → courts).
Buyer takeaway: check thevalor de referenciabefore signing the deed on the Sede del Catastro. Never sign the deed below thevalor de referenciato save tax — this triggers a back-claim (liquidación complementaria) plus a penalty.
Worked examples (resale, non-resident, without mortgage)#
Purchase price 500.000 €: ITP = 400.000 × 8 % + 100.000 × 9 % = 41.000 €; plus notary (~1.300 €), registry (~750 €), gestoría (~500 €), lawyer (~1 % + IVA ≈ 6.050 €), translator if needed (~400 €) → ≈ 50.000 € (≈ 10 %).
Purchase price 1.000.000 €: ITP = 32.000 (8 %) + 18.000 (9 %) + 40.000 (10 %) = 90.000 €; plus ancillary costs → ≈ 107.000 € (≈ 10.7 %).
*Verification check:* 700.000 € → ITP = 32.000 + 18.000 + 10.000 = 60.000 € ✅ (consistent).
Key tax forms (Modelos)#
| Modelo | Purpose | Deadline |
|---|---|---|
| 600 | ITP/AJD (ATIB) | 30 working days from the deed |
| 210 | IRNR (non-residents, → Ch. 05/06) | annually / 4 months on sale |
| 211 | 3 % retención on sale by non-residents (→ Ch. 06) | 1 month from the deed |
| 714 | Wealth tax (→ Ch. 07) | Renta campaign (Apr–Jun) |
| 720 | Foreign assets (only residents, → Ch. 18/19) | 1.1.–31.3. |
In depth#
ITP reductions in detail (DLeg 1/2014 IB)#
- 100 % bonificación (0 € ITP) for the first
vivienda habitualof buyers under 30
or with a disability ≥ 33 % — Art. 14 quater; conditions: Balearic residence in the preceding 3 years, first home with ≥ 50 % full ownership, value ≤ 270.151,20 €. ✅
- 2 % (on the first 270.151,20 €) for first-time buyers under 36. 🟡
- ✅ Familia numerosa / monoparental: 2 % on the first 270.151,20 € (+ 8 % above), where
the home is a vivienda habitual and the total value is ≤ 350.000 €. 🔎 The 5 % circulating in secondary sources refers to VPO (social housing), not to the standard familia-numerosa relief. 🔴 Exact article (Art. 10 vs. 12 DLeg 1/2014) open.
- 🟡 2026: island price ceilings for the bonificaciones raised (Mallorca 307.089 €),
but the relief still applies only to the first 270.151,20 €.
Special cases ITP/IVA#
- Garages/trasteros: on a new build, 10 % IVA applies to a maximum of 2 spaces, **if acquired in the same
legal act** as the home (3rd garage → 21 %). ✅
- VPO: first transfer AJD-exempt. ✅
extinción de condominio(dissolution of co-ownership): as a rule only AJD instead of ITP. 🟡renuncia a la exención del IVA(sale to a business): 2 % AJD +
inversión del sujeto pasivo (the buyer owes the IVA). ✅
IRNR reform 2024 (important for landlords)#
✅ For rental income from 1.1.2024, the quarterly filing is dropped — an annual return (Modelo 210), deadline 1–20 January of the following year (applies to territorio común = Balearics). The renta imputada (own use) remains annual (until 31.12. of the following year). With co-ownership, each owner files their own Modelo 210.
Tax calendar for the buyer#
| Deadline | Procedure | Modelo |
|---|---|---|
| 30 working days from the deed | ITP / AJD | 600 |
| 1 month from the deed | 3 % retención (non-resident seller) | 211 |
| 1–20 January (rental) / following year (own use) | IRNR owner | 210 |
| 30 working days (sale) / 6 months (inheritance) | Plusvalía municipal | municipal |
❓ FAQ#
How much transfer tax do I pay in Mallorca? For resale properties, the progressive ITP: 8 % up to 400.000 €, then 9/10/12 %, and 13 % above 2 million €. For new builds, instead 10 % IVA + 1.5 % AJD.
What is the valor de referencia and why does it matter? A value set by the Catastro that, since 2022, is the minimum tax base for purchase tax. The tax follows the higher of the purchase price and the valor de referencia — but it can be challenged via an expert report (STC 13/2026).
Sources (selection)#
- DLeg 1/2014 IB (BOE-A-2014-6925), Art. 10 (ITP), Art. 15/17/17bis (AJD) · DL 4/2023 · Ley 12/2023
- Ley 11/2021 (BOE-A-2021-11473) · STC 13/2026 (→ Ch. 23) · ATIB / Sede del Catastro