Transfer tax in the Balearics: the bands that apply
A resale property in the Balearics is subject to transfer tax charged on a progressive scale, so each slice of the price is taxed at its own rate, while a new build from a developer carries VAT plus stamp duty instead.
gelisted editorial team · Updated 15 August 2026
The short version
- Resale purchases pay transfer tax on a progressive band system.
- New builds pay VAT plus documented legal acts duty, not transfer tax.
- The tax base is the higher of the price paid and the reference value.
- The self-assessment must be filed within 30 working days of the deed.
This is the largest single cost on top of the price, and the one most often underestimated because buyers apply a single percentage to the whole amount.
How the bands work
The scale is progressive, not a flat rate. Each slice of the purchase price falls into its own band and is taxed at that band's rate, in the same way income tax works. Applying the top band rate to the entire price overstates the bill, while applying the bottom rate understates it. The regional government sets and periodically revises both the bands and the rates.
| Purchase type | Tax | Filing deadline |
|---|---|---|
| Resale from a private seller | transfer tax, progressive scale | 30 working days |
| New build from a developer | VAT plus stamp duty | with the deed |
| Plot of land from a business | VAT plus stamp duty | with the deed |
| Plot of land from a private seller | transfer tax | 30 working days |
| Garage bought with the home | same regime as the home | |
| Tax base | higher of price or reference value | |
| Reduced rates | certain buyer categories | regional rules |
The reference value catch
The taxable base is not automatically the price on the deed. It is the higher of the price paid and the cadastral reference value assigned to the property. If you buy below that value, the tax is still calculated on the reference value, and the difference can add several thousand euros to a purchase that looked like a bargain. Check the reference value before agreeing the price, not after.
Deadlines and who files
The buyer is liable and must file a self-assessment within 30 working days of signing the deed. Late filing triggers surcharges that increase with the delay. In practice the lawyer or gestor handling the purchase files it, but the legal responsibility sits with the buyer, so it is worth confirming in writing that it has been done and keeping the stamped receipt.
The scale of the figures explains the care. On a 400,000 € resale, transfer tax at an effective 9 % is 36,000 €; at an effective 10 % it is 40,000 €. Add notary and registry of 1,500 to 3,000 €, legal fees of 1 % and a valuation of 300 to 700 €, and total acquisition costs land between 10 % and 13 % of the price, or 40,000 to 52,000 € on that purchase.
The land registry will not register the property in your name until the tax has been filed and paid, so a missed deadline blocks the registration as well.
Reduced rates
Regional rules provide reduced rates in defined situations, which have included first homes below a price threshold, buyers under a certain age, large families and people with a recognised disability. The conditions are strict and usually require the property to be the habitual residence for a minimum period. They are worth checking with a local adviser before completion, since they cannot be claimed retroactively once the standard rate has been paid.
Frequently asked
+How is transfer tax calculated?
On a progressive scale, with each slice of the price taxed at its own band rate rather than one flat percentage.
+Does a new build pay transfer tax?
No. A new build from a developer carries VAT plus documented legal acts duty instead.
+What is the taxable base?
The higher of the price paid and the cadastral reference value assigned to the property.
+When must it be paid?
Within 30 working days of signing the deed, with surcharges applying to late filing.
+Are there reduced rates?
Yes in defined cases such as first homes below a threshold, subject to strict conditions that cannot be claimed retroactively.
Sources
- 1Govern de les Illes Balears, Govern de les Illes Balears (August 2026)
- 2Boletín Oficial del Estado, BOE (August 2026)