Buyer’s Guide — Purchasing Real Estate in Ibiza (2025 Edition)

25/07/2025

True Cost Checklist — Taxes & Professional Fees

Key point: total acquisition cost for buyers typically falls between 8 % and 12 % of the agreed price.

Understanding Ibiza’s Purchase Taxes

Transfer Tax (ITP) — Resale Properties

Paid within 30 days of signing the title deed, based on the higher of the declared price or the Spanish tax authority’s appraised value.

Parking spaces: up to €30k taxed at 8 %, balance at 9 %.

VAT (IVA) & Stamp Duty (AJD) — New-Builds

• VAT: 10 % on residential units; 21 % on land, commercial space, storage rooms and garages.
• AJD: 1.5 % of the purchase price, payable by the buyer within 30 days.

Non-Tax Expenditure

• Legal Fees: typically 1 % of price.
• Mortgage Valuation & Arrangement: valuation cost depends on size/value; all other loan costs borne by the lending bank under Spain’s 2019 mortgage law.
• Notary & Registry: seldom exceed 0.5 % combined—and percentage falls as price rises.
• Bank Costs: transfer fees, banker’s drafts, currency conversion.
• Agency Commission: paid by the seller unless expressly agreed otherwise.

Buyer Responsibilities — Document Pack

• Passport or national ID
• Original NIE/TIE (Spanish tax ID)
• Bank cheque or proof of transfer
• Receipts for any pre-payments
• Military Permit (non-EU buyers purchasing rural or defence-zone land; Swiss buyers exempt)
• Golden Visa paperwork where applicable

Tip: engage a gestoría to collate and file documents with the police, tax office and notary.

Compliance & Due Diligence

Before exchanging contracts, your lawyer should verify:

1. Title deed matches seller’s ownership.
2. Land Registry shows no liens, fines or embargoes.
3. Cadastre data aligns with physical boundaries.
4. Valid building licence & habitation certificate (cédula).
5. Recent energy performance certificate (EPC).
6. Paid-up IBI property tax and utilities.
7. No outstanding community fees or restrictive bylaws.
8. Absence of existing rental contracts or tenants.

Three Contract Phases

The Public Deed (Escritura de Compraventa)

Signed before a notary; balance of price paid. Buyer selects the notary (and bears cost). Ownership transfers at that moment.

Post-Completion Checklist

1. Notary sends electronic copy to Land Registry (60-day protection).
2. Buyer pays ITP or IVA/AJD within 30 days.
3. Register change of ownership at Catastro and local council.
4. Notary (often) files capital-gains notification to the town hall.

Financing & Mortgage Insights

• Spanish banks lend up to 60 – 70 % LTV to non-residents.
• Variable and fixed rates available; valuation cost €300 – €3,000+.
• All ancillary mortgage charges (notary, registry, arrangement) now paid by the lender.
• Use a currency broker to hedge FX exposure.

Residency & Golden Visa

• €500,000 unencumbered purchase unlocks two-year residency.
• Renewable every five years; no minimum stay.
• Eligible family members included.
• After ten years of legal residence, citizenship may be requested.

Money-Laundering Regulations

Spanish Law 10/2010 demands proof of funds’ origin. Be prepared to supply bank statements, sale contracts, inheritance paperwork or company accounts early in the process.

Summary of Buyer Costs (Quick View)

• Taxes: 8-13 % ITP or 10 % VAT + 1.5 % AJD
• Legal advice: ~1 %
• Notary & Registry: 0.1–0.5 %
• Valuation & bank fees: variable
• Total outlay: typically 8–12 % on top of purchase price

The Sale-Purchase Deed (Escritura de Compraventa)

The final, legally binding step in purchasing a property in Ibiza is the execution of the Sale-Purchase Deed before a local notary (Escritura de Compraventa). This official signing takes place in the presence of all parties involved — either the buyers and sellers themselves or their legally appointed representatives.

At this point, the full purchase price is paid, minus any deposit previously transferred during the reservation or private agreement phase. Buyers are entitled to choose their notary, since they are responsible for covering the notarial costs.

Upon signing, full ownership of the property, along with all associated rights and responsibilities, is officially transferred to the buyer. From this moment, you are the legal titleholder of the property.

What Happens After the Deed Is Signed?

After the deed has been signed and notarised, a number of important administrative and fiscal steps must be completed to fully register the property in your name and meet all legal obligations.

Real Property Registry (Registro de la Propiedad)

Immediately following the notarial signing, the notary will send a certified electronic copy of the deed to the official Real Property Registry, initiating a “submission entry” (asiento de presentación).

This entry remains valid for 60 days, during which time the buyer must complete the official registration of the property under their name, including any legal encumbrances that existed at the time of purchase.

This step secures your legal ownership in public records, protecting against third-party claims.

Payment of Taxes

The signing of the deed also triggers the obligation to pay applicable taxes based on the type of property:

• For resale (second-hand) properties, the Property Transfer Tax (ITP) applies.
• For new builds or undeveloped land, VAT (IVA) and Stamp Duty (AJD) must be paid instead.

All tax payments must be completed within one month from the date of signing.

Registration with the Land Registry (Catastro)

Buyers must also notify the Land Registry (Catastro) of the change in ownership within two months. This ensures that cadastral records, tax data, and ownership information are updated correctly.

Notification to the Local Municipality

Finally, the new owner is required to inform the local municipal authority (Ayuntamiento) of the change in ownership. This is done by submitting a non-certified copy of the notarised title deed so the municipality can assess the local capital gains tax (Plusvalía Municipal / Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana).

Note: In most cases, this notification is handled automatically by the notary’s office via electronic submission on your behalf.

Final Note

We hope this comprehensive Buyer’s Guide has provided valuable insight into how to purchase a property in Ibiza with full confidence and legal security.

For tailored support, legal coordination, or private off-market opportunities, don’t hesitate to reach out to your dedicated team at Ibiza One – multilingual, discreet, and deeply connected across the island’s legal and real estate networks.

Final Word

Owning property in Ibiza combines lifestyle, capital appreciation and—if structured well—tax efficiency. Whether you seek a designer clifftop villa, a restored finca or a marina penthouse, thorough preparation, expert legal guidance and accurate budgeting are the cornerstones of a seamless purchase.

For bespoke advice, Golden-Visa structuring or private off-market listings, contact our multilingual legal and brokerage team at Ibiza One — we navigate every step so you can focus on the sunsets.

→ Discover our Seller’s Guide: How to Sell a Property in Ibiza for a full overview of their responsibilities and costs.