How High Is the Property Transfer Tax (ITP) on Ibiza?

24/11/2025

Buying property on Ibiza involves more than negotiating the ideal villa or finca. Understanding the Property Transfer Tax (Impuesto de Transmisiones Patrimoniales – ITP) is essential, especially for international buyers entering the Balearic real estate market. ITP applies exclusively to resale properties—not to newly built homes purchased directly from developers—and follows a progressive tax scale based on the final purchase price.
Below you’ll find a comprehensive, up-to-date overview for November 2025, including VAT (IVA) and stamp duty (AJD) applicable to new constructions.

The Current ITP Scale on Ibiza (2025)

The Balearic Islands apply a tiered property transfer tax system. The following rates currently apply when buying a resale property on Ibiza:

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%

These brackets reflect the region’s current taxation guidelines and directly impact the overall purchase budget. Each rate corresponds to the full purchase value of the property within its respective price bracket.

What This Means in Practice

A practical example helps illustrate how ITP affects real investment decisions on Ibiza:

A €750,000 villa falls within the 10% rate → €75,000 in ITP.
A luxury estate priced at €2.5 million falls within the 13% bracket → €325,000 in ITP.

Especially for high-value transactions in Ibiza’s premium segment, ITP represents a substantial portion of the overall acquisition cost—and needs to be factored in from the very beginning.

VAT (IVA) + Stamp Duty (AJD) for New-Build Properties (2025)

Buyers of newly built homes—those purchased directly from a developer—do not pay ITP. Instead, two other taxes apply:

1. VAT (IVA) – 10%

For residential new-builds on Ibiza (villas, apartments, townhouses), the standard VAT rate is 10% of the purchase price.

2. Stamp Duty (AJD) – approx. 1.2%

In addition to VAT, buyers must pay Actos Jurídicos Documentados (AJD), commonly known as stamp duty.
As of November 2025, the rate on the Balearic Islands is approximately 1.2%.

Example for a new-build villa (€800,000):

€80,000 VAT (10%)
€9,600 AJD (1.2%)
Total taxes: €89,600

This makes new-build purchases subject to a different—but still significant—tax structure.

Why Agents Mention “13% ITP + Works (Obras)”

It is common in Ibiza’s luxury real estate market to see the phrase:
“13% ITP + obras”

This refers to two separate cost components:

13% ITP: The property price exceeds €2 million and is subject to the highest ITP bracket.
Obras (works): Renovation, modernization, or structural improvements the buyer must undertake, often significant for fincas or traditional Ibizan properties.

In essence, this shorthand warns buyers to budget for both taxes and upcoming renovation investments.

Important Considerations When Buying Property on Ibiza

ITP applies only to resale properties.
New-builds are taxed with 10% VAT + 1.2% stamp duty.
Tax rates can be updated, so buyers should verify the current structure or consult a real estate professional.
Purchase decisions should always include taxation, legal fees, notary fees, registry fees, and—in luxury cases—potential renovation or upgrade expenses.

Ibiza One – Guiding You Through Every Step

Whether you are searching for a secluded finca, a contemporary architectural villa, or a frontline estate overlooking the Mediterranean, Ibiza One ensures complete transparency in every aspect of the purchase process. From tax calculation to renovation planning and market valuation, our team provides expert guidance based on decades of experience in Ibiza’s exclusive real estate segment.