Purchase costs Ibiza

At Residence Ibiza, we understand that finding and purchasing your dream home in Ibiza is much more than just picking the perfect place and signing the deed. It's crucial to be fully prepared for all the additional costs involved. That's why we've put together this guide to navigate you through the financial side of buying a home on our beautiful island.

1. Taxes and Costs to consider

a. New Build vs Existing Property

If you opt for a new build in Ibiza, you need to consider:

VAT (IVA): 10% of the purchase price. Stamp Duty (AJD): 1.5%, an additional expense to remember in your budget. For existing properties, Transfer Tax (ITP) applies, ranging between 8% and 13%, depending on the price established for the property.

b. Lawyer Fees

For legal assistance regarding your purchase, budget around 1% of the purchase price for lawyer fees.

c. Mortgage Costs

The costs of obtaining a mortgage, including valuation fees, are typically borne by the bank. However, it's wise to research this beforehand. Residence Ibiza can connect you with a mortgage provider that suits your needs, ensuring you get the best deal.

d. Notary and Land Registry Fees

These costs are usually less than 0.5% of the purchase price but are crucial for the official registration of your new property.

e. Bank Charges

Transaction fees can vary, so it's advisable to check with your bank beforehand for any charges when transferring large amounts to Spain.

2. Total estimated costs

Realistically, you can expect additional costs ranging from about 8% to 15%, depending on the purchase price, on top of the purchase price of your house in Ibiza. This estimate helps you to establish a comprehensive budget, including all taxes and fees.

3. Buy smart

At Residence Ibiza, we always recommend our clients to seek professional assistance. This includes legal advice to ensure all documentation is accurate and that you fully understand your financial obligations. We can connect you with the right lawyer to meet your specific needs. We always advise conducting legal and technical due diligence so you know exactly what you're buying!

4. Prepare for your purchase

Before taking the final step, make sure you:

Have your financing in order, including understanding all costs.
Have a reliable lawyer specializing in Spanish real estate.
Are prepared to pay the necessary taxes and fees to secure your dream home.

5. Overview of Costs

To give you a clear overview of what to expect, here's a summary of possible costs as a percentage of the purchase price:

VAT (IVA) for new builds: 10%
Stamp Duty (AJD) for new builds: 1.5%
Transfer Tax (ITP) for existing properties: 8% - 13%
Lawyer fees: Approximately 1%
Notary and Land Registry fees: Less than 0.5%
Bank charges: Variable

So, the total extra costs vary between 8% and 15% of the purchase price, depending on what you're specifically buying. This overview helps you create a comprehensive budget for your purchase in Ibiza.