The current additional costs associated with buying a property in Mallorca
Purchase Costs When Buying Property in Mallorca (2025/2026)
Anyone buying property in Mallorca should factor in not just the purchase price, but also the additional costs on top of it. Depending on the property type and purchase price, 8 to 13% of the purchase price in additional costs should be expected. The key distinction: whether you are buying a new-build or a resale property determines which taxes apply.
🏗️ New-Build Property
When purchasing a new-build directly from a developer, the following taxes apply:
VAT (IVA) — 10 %VAT on residential properties is 10% of the purchase price. For commercial properties and land, the rate is 21%.
Stamp Duty (Actos Jurídicos Documentados / AJD) — 1.5 %In addition to VAT, stamp duty of 1.5% of the notarised purchase price applies. It becomes due after signing the notarial deed of sale.
Example new-build at €400,000:IVA 10% = €40,000 + AJD 1.5% = €6,000 → Total tax: €46,000
🏡 Resale Property
When buying a resale property, VAT does not apply — instead, a progressive property transfer tax is charged:
Property Transfer Tax (Impuesto sobre Transmisiones Patrimoniales / ITP)
The Balearic Islands have one of the highest progressive ITP rates in Spain:
| Purchase price portion | Tax rate |
|---|---|
| Up to €400,000 | 8% |
| €400,001 – €600,000 | 9% |
| €600,001 – €1,000,000 | 10% |
| Over €1,000,000 | 11.5% |
Example resale at €600,000:€400,000 × 8% = €32,000€200,000 × 9% = €18,000ITP total: €50,000 (≈ 8.3% of purchase price)
📋 Costs Applicable in Both Cases
Notary Fees — approx. €600 to €2,000Notary fees are legally regulated and depend on the purchase price. They cover the notarisation of the purchase contract.
Land Registry Entry — approx. €300 to €1,200After notarisation, the property must be registered in the Land Registry (Registro de la Propiedad). Costs also depend on the purchase price.
Gestoria — approx. €300 to €600The Gestoria handles all administrative dealings with the Land Registry, the bank and the tax authorities on your behalf.
Lawyer (strongly recommended) — 0.5% to 1% of the purchase priceAlthough not legally required, engaging a Spanish lawyer (Abogado) is strongly recommended — especially for foreign buyers — to verify title deeds, check for encumbrances and review all relevant documents.
📊 Summary Overview
| New-Build | Resale | |
|---|---|---|
| Main tax | IVA 10% | ITP 8–11.5% (progressive) |
| Stamp duty | AJD 1.5% | Not applicable (except mortgage) |
| Notary | €600 – €2,000 | €600 – €2,000 |
| Land Registry | €300 – €1,200 | €300 – €1,200 |
| Gestoria | €300 – €600 | €300 – €600 |
| Lawyer | 0.5 – 1% | 0.5 – 1% |
| Total approx. | 11.5 – 12.5% | 9 – 13% |
💡 Conclusion
Purchase costs in Mallorca are high by European standards — but they must be factored into your budget from the very beginning. As a rule of thumb: budget at least 10–12% of the purchase price on top. Since the ITP is progressively tiered, the tax burden increases disproportionately for higher-priced resale properties. An experienced lawyer and a reliable Gestoria are not optional extras — they are essential partners when buying property in Mallorca.
welcome to mallorca real estate — Your partner for property in Mallorca