bed prop bath plot pool tick select sleeps heart star
You are here: GHL IBIZA Real Estate Agent >

Costs and Taxes Related to Buying a Property in Ibiza

Taxes 3

Costs and Taxes Related to Buying a Property in Ibiza

In a previous post we spoke about the “3 steps of buying a house in Ibiza. This time we will look at the real costs related to buying a property in Ibiza.

When you buy a property in Ibiza, you need to consider that over and above the property price, you must pay several costs and taxes. We can safely say that the estimate cost for purchasing an Ibiza property is between 9% and 12% of the property’s purchase price, including taxes and obligatory additional charges. These costs are broken down as follows:

Taxes 2

1. Transfer Tax 

When buying a property in Ibiza, there is a state tax you must pay, whether you buy a new build property or an existing one.

  • If you buy a second-hand property you must pay the Impuesto sobre Transmisiones Patrimoniales (ITP, starting at 8%) 
  • When buying a new build property, you must pay the Impuesto sobre el Valor Añadido (IVA, starting at 10%) 

In both cases, it’s the buyer who must pay the tax on property transfers, calculated according to the total value of the property being sold.

Taxes 4

2. Local Property Tax 

This tax is similar to the council tax in the UK and it’s called Impuesto sobre Bienes Inmuebles (IBI). It’s a local tax raised by the Town Hall (Ayuntamiento) where the property is registered. 

The tax base is calculated with regards to the Catastral value of the property (Valor Catastral). The tax rate varies depending on the size of the municipality where the property is located. The total amount charged is the property catastral value multiplied by the tax rate. If you buy a property in Ibiza, you will have to pay this tax only once the property has been register to your name. 

If you buy an existing property, before signing the Escritura, the seller is obliged to present the last receipt for the payment of rates (IBI) to the notary or your lawyer. Bear in mind that your lawyer should also obtain a certificate from the Local Rates office (Racaudacion Provincial) to confirm that all rates have been paid. In the eventuality that the IBI has not bee paid by the previous owner, the local town hall may charge unpaid IBI for up to a maximum of five years in arrears, with penalties of up to 20% for late payment.

Taxes 1

3. Other costs

When buying a property you will incur in many other external costs, some bigger than others. These expenses will include agency and legal fees, notary expenses, the property registration, if you choose to buy with a mortgage this will add extra costs too. Don’t forget about the bank cost to set up a Spanish bank account and transfer the funds across from your home country bank account, plus eventually the Income Tax Provision if you buy from a non-resident. 

For more information on how we can help during the buying process, visit our Service Page.

Other interesting articles

What Makes a Home Sustainable?

Once upon a time, every home built in Ibiza was sustainable. That’s because in the past, people only had access…

GHL has become a proud sponsor of Ibiza Polo Club!

GHL is happy to be partnering up with Ibiza Polo Club! The club was founded by Gabriel Inglesias in 2010…

5 signs that you’ve found the right house in Ibiza

We know that looking for a house can be tricky and doubts can raise wondering if you’re making the right…

Moving to Ibiza With Your Family – What You Need to Know

Moving abroad can be challenging, even more so if you have kids. Ibiza and Spain, in general, are very child-friendly…

GHL IBIZA
THE APP

This is what we might call a 21st century version of the printed catalogue that we can find in any real-estate. The idea behind is the deeply-rooted eco thinking of Gould, Heinz & Lang. We are keen on reducing footprint and thus invest in alternative options and embrace the digital world!

The App features our client’s luxury villas and is available from all of the various App stores, in all formats and is downloadable free from all platforms and for any device.

Offices

Both our offices are located right in the heart of the island, in Santa Eulalia and San Juan. Our prime locations provide easy access to all our customers. We are always happy about your visit and we would like to introduce you to our portfolio.


 

GOULD HEINZ & LANG – Paseo s’Alamera 11
07840 Santa Eulalia, Ibiza, Spain
+34 971 339 305
office@ghl-ibiza.com

 

 

GOULD HEINZ & LANG – Plaza Major
Sant Juan, Ibiza, Spain
office@ghl-ibiza.com

Newsletter Offers,
legal advice & lifestyle
Newsletter iPad