How is ITP calculated in the Balearics?
The transfer tax ITP (Impuesto sobre Transmisiones Patrimoniales) applies when buying a resale property and is progressive in the Balearic Islands. The brackets are applied per tranche, like income tax: the whole price is not taxed at one rate; each tranche gets its own rate.
- up to 400,000 EUR: 8%
- 400,000 to 600,000 EUR: 9%
- 600,000 to 1,000,000 EUR: 10%
- 1,000,000 to 2,000,000 EUR: 12%
- above 2,000,000 EUR: 13%
An example: on a 500,000 EUR purchase you pay 8% on the first 400,000 EUR (32,000 EUR) and 9% on the remaining 100,000 EUR (9,000 EUR), 41,000 EUR in total. The current rates of the ATIB are decisive.
New builds: IVA instead of ITP
On a first sale by the developer there is no ITP; instead 10 percent IVA (the Spanish VAT) plus 1.5 percent AJD (stamp duty) apply on the purchase price. For high-priced new builds this is often cheaper than the progressive ITP brackets, for smaller properties more expensive.
Are there reduced ITP rates?
Yes, for certain buyer groups with value limits: for example 2 percent for buyers under 36 purchasing their primary residence, plus reductions for disability or large families. The tool deliberately does not calculate these special cases because the conditions need detailed checking. You will find the current rules at the ATIB.
Which fees are added on top?
Notary and land registry charge according to the statutory fee schedule (Arancel), together usually 0.2 to 0.5 percent of the purchase price with minimum amounts. A lawyer checks contracts, charges and permits and typically costs around 1 percent. A gestoria handles tax filing and re-registrations for a flat 300 to 600 EUR. As a rule of thumb, plan for a total of 10 to 13 percent of the purchase price in costs on Mallorca.