Purchase taxes are the largest cost on top of the price when buying in Mallorca, and they differ fundamentally between resale properties and new builds. The Balearic Islands apply their own progressive transfer-tax scale, so the effective rate rises with the price.
Here are the rates and typical costs as of July 2026, with worked examples in real numbers.
Resale property: ITP on a progressive Balearic scale
Resale purchases pay ITP (transfer tax), applied on the higher of the price or the cadastral reference value. The Balearic brackets are:
- Up to 400.000 € → 8%
- 400.000,01 € to 600.000 € → 9%
- 600.000,01 € to 1.000.000 € → 10%
- 1.000.000,01 € to 2.000.000 € → 12%
- Above 2.000.000 € → 13%
Worked examples
Because the scale is progressive, each bracket applies only to the portion of the base within it. Total ITP works out as follows: a 500.000 € purchase pays 41.000 €; a 1.000.000 € purchase pays 90.000 €; a 1.500.000 € purchase pays 150.000 €; and a 2.500.000 € purchase pays 275.000 €.
Reduced rates for young buyers exist, but with strict residence, income and value limits that rarely apply to international buyers.
New build: IVA plus stamp duty
New builds bought from a developer pay no ITP. Instead you pay 10% IVA (VAT) on the home — including up to two parking spaces bought together with it — plus AJD stamp duty at the Balearic rate of 1,5%, rising to 2% where the value is 1.000.000 € or more.
Other purchase costs
Beyond taxes, budget for the professionals who close the purchase. As a rule of thumb: resale = ITP plus roughly 1–2% for notary, registry and professionals; new build = 10% IVA plus 1,5–2% AJD plus professional costs.
Since 2018, the stamp duty on a mortgage is paid by the lender, not the borrower. And since 2022, the taxable base is the higher of the price or the cadastral reference value — the reference value sets a floor, so check it before you offer, especially on older properties.
- Notary: 600 € to 1.500 €
- Land Registry: 400 € to 1.000 €
- Gestoría: 300 € to 600 €
- Independent lawyer: variable, agreed in advance
After the purchase
Purchase taxes must be filed within one month of the notary deed with ATIB, the Balearic tax agency, before the deed is registered at the Land Registry. If you later sell, different taxes apply to you as seller — plusvalía municipal and capital gains — and if you sell as a non-resident, the buyer withholds 3% of the price on account of your gain.
Knowing the all-in number changes what price bracket you should search in. If you tell us your total budget, we search with taxes and costs already factored in.
This guide is general information, updated July 2026. It is not legal or tax advice. Rules and rates change; always verify the specifics of your purchase with an independent lawyer and tax advisor before committing.