How Much Does It Cost to Buy a Flat in Mallorca? Taxes and Real Expenses
The property price is just the starting point. In the Balearic Islands, purchase costs can reach 13%. We break down every euro so there are no surprises.
One of the most common mistakes when buying a property in Mallorca is calculating only the sale price and forgetting the associated costs. In the Balearic Islands these can reach 13% of the purchase price. We break them all down for you.
ITP — Property Transfer Tax
The most important tax when buying a resale property. In the Balearic Islands the progressive scale is:
- Up to 400,000 €: 8%
- From 400,001 € to 600,000 €: 9%
- From 600,001 € to 1,000,000 €: 10%
- Over 1,000,000 €: 11%
Reduced rates exist for primary residences purchased by buyers under 36. Consult a tax advisor to see if this applies to your situation.
New Builds: VAT + AJD
If you buy directly from the developer, you pay VAT at 10% instead of ITP, plus the Stamp Duty (AJD) at 1.5% on the declared purchase price. That adds up to 11.5% on top of the price.
Notary and Land Registry
Notary fees are regulated by law and depend on the declared purchase price. Approximately:
- Property at 200,000 €: ~800 €
- Property at 500,000 €: ~1,200 €
- Property at 1,000,000 €: ~2,000 €
Land Registry fees amount to approximately 30–50% of the notary bill.
Management Agency and Valuation
If you are financing with a mortgage, the bank requires a management agency to settle taxes and handle registration (300–500 €) and an official property valuation (300–600 € depending on size and type).
Practical Example
Resale flat in Palma for 350,000 €:
- ITP (8%): 28,000 €
- Notary: ~1,000 €
- Land Registry: ~500 €
- Management agency: ~400 €
- Total costs: ~29,900 € — 8.5% of the price
Real total amount paid: 379,900 €.
Who Pays What?
The buyer pays ITP (or VAT+AJD), notary fees, land registry and management agency fees. The seller pays the municipal capital gains tax (plusvalía) and income tax on the capital gain. Estate agent commissions are paid by whoever engaged the service — at Amelia, they are always paid by the seller, never the buyer.
How to Reduce Costs Legally?
There is limited room for manoeuvre, as these are regulated taxes. However, you can: negotiate the sale price to lower the taxable base, check whether a reduced ITP rate applies to your case, and compare notaries (fees are indicative within a set range).
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