Buying property in Mallorca is an exciting step — but understanding the taxes and fees involved is essential.
For international buyers, Spain’s tax system can feel complex.
With the right guidance, you can plan ahead, avoid surprises, and invest confidently.
At Robinson Architecture, Design & Construction, we work with trusted lawyers and tax advisors to give our clients complete clarity from day one.
Here’s a simple breakdown of what you’ll pay when buying in Mallorca.
Purchase Taxes (ITP, VAT & Stamp Duty)
Taxes depend on whether your property is resale or newly built:
Resale properties – Transfer Tax (ITP)
• Between 8% and 11% of the purchase price
• Paid once at completion
New properties – VAT (IVA) & Stamp Duty (AJD)
• 10% VAT on the purchase price
• 1.5% Stamp Duty on top
👉 Example:
A €1,000,000 resale villa → €80,000–€110,000 in ITP
A €1,000,000 new villa → €100,000 VAT + €15,000 AJD
Annual Property Taxes
Once you own a property, expect annual municipal taxes:
IBI (Local Property Tax)
• Similar to council tax
• Usually 0.5%–1% of the cadastral value (lower than market value)
Basura (Garbage Tax)
• Annual fee for rubbish collection
• A few hundred euros per year, depending on municipality
Wealth & Income Taxes
If you’re a foreign owner, two additional taxes may apply:
Wealth Tax (Impuesto sobre el Patrimonio)
• Applies to high-value assets
• Rates in the Balearic Islands: 0.28%–3.45%
• Smart ownership structures can reduce exposure
Income Tax on Rentals
• EU residents: 19% on net rental income
• Non-EU (e.g., US buyers): 24% on gross rental income
The US–Spain Double Tax Treaty
Good news for American buyers — the Double Taxation Treaty means:
• You won’t pay tax twice on the same income
• Spanish taxes can be credited against US taxes
• Reporting rules are clear and predictable
This makes property ownership in Mallorca much simpler for US citizens than in many other countries.
How Robinson Helps
We go far beyond architecture and building.
Our international clients rely on us to coordinate with bilingual lawyers, notaries, and tax specialists — so nothing is left to chance.
We ensure:
• All taxes are explained clearly in advance
• Ownership is structured efficiently (personal, company, or trust)
• You remain compliant in both Spain and your home country
Your home should be a beautiful investment, not a tax surprise.
✅ Ready to buy in Mallorca?
Don’t let taxes take you by surprise.
👉 See the Full Buying Process Here
