Guide fiscale pour acheter ou vendre un bien immobilier à Ibiza

Selling your property in Spain—or buying your dream home in Ibiza—should be exciting, not a tax headache. Between IRPF, capital gains tax, ITP, and VAT, it’s easy to get lost. Here, we break down both processes in simple terms so you know exactly what to expect.

If You’re Interested in Buying…

What Do You Have to Pay? It depends on whether you’re buying new or second-hand.

If You Buy a Second-Hand Property or Plot Without a License:

You’ll pay ITP (Property Transfer Tax).

If You Buy a New Property or Plot With a License:

You’ll pay VAT + AJD (Stamp Duty):

– VAT: 10% for homes and licensed plot.
– AJD: 1.2% of the purchase price. If there’s a mortgage, an additional 1.2% applies to the loan amount.

Other Costs to Consider:

1. Lawyer

Approximate cost: 1%–1.5% of the purchase price. Essential for contract review and legal protection.

2. Notary and Plot Registry

– Notary: Between 0.1% and 0.5% of the purchase price.
– Registry: Between 0.1% and 0.5% of the purchase price.

3. IBI (Annual Property Tax)

Based on the cadastral value (usually lower than market value). Typically between 0.4% and 1.1% of that value.

4. Bank Fees

– If you take out a mortgage, you’ll add bank fees + 1.2% AJD.

Tips to Keep in Mind:

– Always budget an extra 10-16% of the purchase price for taxes and fees.
– In Ibiza, hire a specialized lawyer to avoid legal issues.

If You’re Interested in Selling…

It depends on whether you’re a resident or non-resident.
Capital Gain = Sale Price – (Purchase Price + Taxes & Fees Paid at Purchase)

IRPF (Income Tax for Residents)

If you’re a tax resident in Spain, the profit from the sale is added to your income tax declaration.

The tax rates are progressive:

How to Reduce or Avoid IRPF:

– Reinvestment in Primary Residence: If you use the proceeds to buy another home within 2 years, you’re exempt (tax applies only to the non-reinvested amount).
– Over 65 Years Old: If selling your primary residence, you’re exempt.
– Life Annuities: If you reinvest the profit in a life annuity within 6 months, you won’t owe taxes.

IRNR (Non-Resident Income Tax)

If you don’t live in Spain but sell a property here, you’ll pay:

– Non-EU/EEA residents: 19%
– Residents of other countries: 24%

Additionally, the buyer must withhold 3% of the sale price and submit it to the tax office. If the actual tax is lower, you can claim a refund; if higher, you’ll pay the difference.

Municipal Capital Gains Tax (Plusvalía)

This local tax applies to the increase in the land’s value since purchase.

– Calculated based on the cadastral land value and years of ownership.
– Since 2022, there are two calculation methods—you can choose the most favorable.
– If you sold at a loss, you can request an exemption.

What About the Balearic Islands?

IRPF and IRNR rules are the same as in the rest of Spain. However, some municipalities may have specific plusvalía regulations, so it’s best to check beforehand.

Selling a property means paying taxes, but with good planning, you can minimize the impact. If you’re a resident, take advantage of exemptions; if not, prepare for the 3% withholding. And with the plusvalía, make sure you only pay what’s fair.

Ready to Buy or Sell in Ibiza? Avoid Mistakes—Talk to Our Team Today.

At Best Ibiza, we help make your property sale or purchase as smooth as a Benirrás sunset. Because in paradise, the only complication should be choosing between the beach or the mountains.