Buying Expenses in the Balearic Islands (Formentera, Ibiza, Mallorca, Menorca).
It’s advisable to allocate approximately 14% of the property value for buying costs. This breaks down into various components: a maximum 11% tax (akin to the Spanish stamp duty), local taxes, legal fees, and notary fees.
In the Balearics, the tax structure is as follows:
Up to €400,000: 8%
From €400,001 to €600,000: 9%
From €600,001 to €1,000,000: 10%
Exceeding €1,000,001: 11%.
For those opting for a mortgage, there is a 3% charge on the mortgage value, comprising a 1% arrangement fee, 1% tax, and 1% notary charge.
Non-residents seeking a mortgage can borrow a maximum of 70% based on the bank valuation, not surpassing the official price. For residents, this percentage may increase but typically does not surpass 80%. Expect a certified bank valuation to cost around €500.
Disclaimer
Please be aware that laws in Ibiza undergo frequent changes. Despite my efforts to accurately interpret the law, the above is not comprehensive legal advice. It reflects my interpretation and is not a substitute for the legal counsel of an attorney.
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