Property buying costs in Mallorca 2026: taxes, notary and fees

Property buying costs in Mallorca at a glance

Various additional costs arise alongside the purchase price when buying property in Mallorca. These expenses should be calculated in full before reserving a property so that the financing is based on a sound and realistic budget.

As a general guide, buyers should often allow an additional 9% to 13%, depending on the property type, purchase price and financing. New-build homes are subject to different tax rules from resale properties.

It is also important to distinguish clearly between one-off purchase costs and recurring expenses after completion. This guide deliberately focuses on the one-off costs of buying: taxes, notary, Land Registry, lawyer, gestoría, financing and other purchase-related items.

ITP, VAT and AJD: the main property purchase taxes

Taxes generally account for the largest share of the additional buying costs. The tax due depends mainly on whether you are purchasing a resale property or a new home directly from the developer.

A resale property is subject to ITP, the Spanish Property Transfer Tax. New-build homes are instead subject to IVA, the Spanish equivalent of VAT, and AJD, Stamp Duty.

Before making a purchase decision, it should be clear which tax treatment applies to the particular property. This helps avoid unexpected costs and allows the overall budget to be calculated more accurately.

General ITP bands in the Balearic Islands

ITP is calculated progressively. The highest band reached is not automatically applied to the entire purchase price; each portion is taxed at the rate for its respective band. In individual cases, the taxable base may not be limited to the agreed price alone. The relevant tax base and any applicable reference value should therefore be checked professionally before signing.

New builds: VAT and AJD

The first purchase of a completed residential property directly from a developer is normally subject to 10% VAT instead of ITP. AJD is also generally payable in the Balearic Islands. The general AJD rate is currently 1.5%, although different rates or relief may apply depending on the price, intended use and the buyer's personal circumstances.

Example calculation: buying costs on a €480,000 property

A practical example makes the additional costs much easier to understand. This calculation is based on a resale property with a purchase price of €480,000. Resale property is normally subject to ITP.

The first €400,000 is taxed at 8%. The remaining €80,000 is taxed at 9%.

In addition to ITP, costs arise for the notary, Land Registry, lawyer and gestoría. Amounts vary according to the property, the transaction and the extent of the checks required.

Example calculation: a €1,250,000 villa in Mallorca

Many buyers in Mallorca are interested in high-quality villas or exclusive fincas. Additional costs are often underestimated in the upper price segment, so a second example is helpful.

For a villa priced at €1,250,000, not only the tax but also legal fees, notary costs and other professional charges increase. The general progressive ITP in this example is €120,000.

Notary and Land Registry costs

The notary appointment is one of the most important stages of buying a property in Mallorca. The public deed of sale is signed before a notary, and the transfer of ownership is subsequently registered with the Spanish Land Registry.

Notary fees depend on factors including the purchase price and the length and complexity of the deed. Separate fees arise for registering the change of ownership.

Although these costs are generally much lower than the tax liability, they are a standard part of every property transaction.

Lawyer and gestoría: why professional support is valuable

International buyers in particular should not dispense with professional assistance. An independent lawyer checks the legal status of the property and can identify potential risks before binding commitments are made.

The most important checks include Land Registry records, legal ownership, possible charges, outstanding debts, building licences, cadastral information and other relevant documentation.

A gestoría mainly handles administrative matters such as tax filings, official procedures and communication with public authorities.

Financing and mortgages when buying property

If you finance your Mallorca property through a mortgage, allow for additional banking and financing costs. These vary according to the bank, buyer profile, purchase price and loan-to-value ratio.

A common cost is the official property valuation, known in Spain as a tasación. Many banks require this valuation before finally approving a mortgage.

Non-residents should establish the available financing level at an early stage. Spanish banks often require international buyers to contribute more equity than resident purchasers.

Estate agency commission in Mallorca

One of the most frequent questions from international buyers concerns estate agency commission. In Mallorca, the seller pays the commission in many transactions. Nevertheless, it should be made clear at the outset which costs may arise in the particular purchase.

The exact arrangement depends on the agency agreement and the sales model. In a conventional purchase through a local estate agent, the buyer often pays no additional agency fee. The position may be different if a buyer's agent or property finder is instructed separately.

An experienced estate agent does more than identify suitable properties. They coordinate viewings, assist with negotiations and support buyers and sellers throughout the transaction.

Ongoing expenses after purchase: a brief overview

This guide deliberately focuses on the one-off costs of purchasing property in Mallorca. After completion, recurring expenses also arise, including IBI, refuse charges, electricity, water, insurance, community fees and possible pool or garden costs.

These ongoing expenses vary considerably by property type. An apartment usually has different regular costs from a villa with a pool or a finca with extensive grounds.

Budget planning when buying property in Mallorca

Realistic budget planning is the foundation of a secure property purchase. Many buyers initially focus on the asking price and underestimate the true overall cost.

By including taxes, notary, Land Registry, lawyer, gestoría, financing costs and a sensible contingency from the beginning, you can make decisions with greater confidence and avoid unwelcome surprises.

It is also advisable to retain a financial reserve for improvements, furniture, minor changes after completion or necessary technical inspections.

Further guidance is available in our articles Top 10 mistakes when buying property in Mallorca and Is now a good time to buy property in Mallorca?.

Frequently asked questions about property buying costs in Mallorca

How much are the additional costs of buying property in Mallorca?

In many cases, buyers should allow approximately 9% to 13% on top of the purchase price. The exact amount depends on the property type, price, financing, available tax relief and tax classification.

What ITP rates apply in Mallorca in 2026?

A progressive scale from 8% to 13% generally applies to resale property. The first €400,000 is taxed at 8%, with further portions taxed at 9%, 10%, 12% or 13%, depending on the band. Relief may be available for certain main-home purchases.

What is the difference between ITP and IBI?

ITP is a one-off Property Transfer Tax when purchasing a resale property. IBI is the annual local property tax paid by the owner.

Do I need a lawyer when buying property in Mallorca?

A lawyer is not legally compulsory but is strongly recommended, especially for international buyers. They check the legal status of the property and assist throughout the transaction.

Who pays the estate agency commission in Mallorca?

In many transactions, the seller pays the commission. The exact arrangement should nevertheless be clarified before making a reservation or purchase offer.

Are buying costs higher for a new-build property?

A new-build home is normally subject to 10% VAT plus AJD instead of ITP. The total depends on the purchase price, applicable AJD rate and any available relief.

When must the purchase taxes be paid?

The tax return and payment must be made within the statutory period following the signing. As the deadline, form and tax depend on the specific case, the process should be prepared with your lawyer or gestoría.

Can foreigners buy property in Mallorca?

Yes. International buyers can purchase apartments, houses, villas and fincas in Mallorca. A Spanish NIE number is normally required.

How long does a property purchase in Mallorca take?

The timing depends on the property, legal checks and financing. Many transactions are completed within approximately four to twelve weeks after agreement.

Conclusion: budget for property buying costs realistically

If you intend to purchase property in Mallorca, always budget for the additional costs as well as the price. Depending on the property type, value and financing, the overall buying costs are often approximately 9% to 13% of the purchase price.

The main items are Property Transfer Tax or, for new builds, VAT and AJD, together with notary fees, Land Registry fees, lawyer, gestoría and any financing expenses. Considering these factors early creates a solid foundation for a secure purchase.

With professional preparation, realistic budgeting and support from experienced specialists, the entire process becomes more transparent, predictable and relaxed.