Buying property in Mallorca: the costs beyond the price
Budget 10 to 13 per cent on top of the purchase price for tax, notary, land registry and administration, with the transfer tax alone running from 8 to 13 per cent on a resale property in the Balearics.
gelisted editorial team · Updated 6 August 2026
The short version
- Transfer tax is the biggest item: a progressive scale from 8 per cent up to 400,000 euros to 13 per cent above 2,000,000.
- New build from a developer is charged 10 per cent VAT plus 1.5 per cent stamp duty instead of transfer tax.
- Notary and land registry together come to roughly 900 to 2,500 euros on a normal transaction.
- Since 2019 the lender pays most mortgage related costs, leaving the buyer the valuation at 300 to 600 euros.
The asking price is never the outlay. On a 450,000 euro purchase you need close to 500,000 available on the day of signing.
The transfer tax scale
| Property value | Cumulative tax | Rate on the next band |
|---|---|---|
| up to 400,000 € | 0 € | 8 per cent |
| 400,000.01 to 600,000 € | 32,000 € | 9 per cent |
| 600,000.01 to 1,000,000 € | 50,000 € | 10 per cent |
| 1,000,000.01 to 2,000,000 € | 90,000 € | 12 per cent |
| above 2,000,000 € | 210,000 € | 13 per cent |
A 450,000 euro home therefore pays 32,000 euros on the first 400,000 and 9 per cent on the remaining 50,000, which is 4,500 euros. Total 36,500 euros, an effective rate of 8.1 per cent.
Everything else
- Notary fees of 800 to 1,200 euros, set by a national tariff and paid by the buyer by custom.
- Land registry of 400 to 800 euros.
- Administration through a gestoría, 300 to 600 euros, optional without a mortgage.
- A nota simple before you commit, under 25 euros.
- Valuation for the lender, 300 to 600 euros.
- Legal advice, typically 1 per cent of the price or a fixed fee from 1,500 euros.
Who pays the agent
In Spain the seller instructs and pays the agency, usually 3 to 6 per cent plus VAT. A buyer paying a separate search fee is unusual and should be agreed in writing. That is the opposite of the position in several other European markets, and it catches out buyers who assume they owe commission.
Tax is calculated on the reference value set by the cadastre when that exceeds the agreed price. Check it before you sign the deposit contract, because it changes the tax bill without changing the price.
The running costs
After completion come the annual IBI property tax, usually 0.4 to 0.9 per cent of the cadastral value, rubbish collection billed separately, community fees of 40 to 250 euros a month, home insurance and, for non residents, the annual non resident income tax return even when the property is not let.
Frequently asked
+How much cash do I need up front?
With a mortgage at 80 per cent, plan on the 20 per cent deposit plus 10 to 13 per cent of costs, so roughly a third of the price.
+Can a non resident buy freely?
Yes. There is no nationality restriction. You need an NIE number and a Spanish bank account for the payments.
+What is the reference value?
A value the cadastre assigns to each property from notarised sale prices. Since 2022 it acts as the minimum tax base.
+Do I have to use a gestoría?
No, you may file the tax and register the deed yourself. With a mortgage the lender usually insists, and then the lender pays.
+What if the registered size differs from the advertised size?
You may need a surveyor and a corrective deed, which adds notary and registry costs and can delay completion by weeks.
Sources
- 1Impuesto sobre Transmisiones Patrimoniales, tipos de gravamen, Agència Tributària de les Illes Balears (August 2026)
- 2Consejo General del Notariado, Consejo General del Notariado (August 2026)