The question always arrives at the first viewing, and rightly so: how much tax do you pay when buying a home in Mallorca? The short answer for 2026: between 10 % and 13 % on top of the price, adding taxes and costs together. The long answer follows.
Resale homes: the banded ITP
On resales you pay the Balearic transfer tax (ITP), in progressive bands: 8 % up to €400,000, 9 % to €600,000, 10 % to €1M, 12 % to €2M and 13 % above. It applies to the price or to the cadastral reference value if higher — a nuance worth checking before signing anything. Reduced rates exist for certain cases (main residences under thresholds, young buyers), which your adviser must confirm case by case.
New builds: VAT + stamp duty
Buying directly from a developer, instead of ITP you pay 10 % VAT plus stamp duty (AJD) — around 1.5 % in the Balearics, higher on large amounts. New builds are the exception in the southeast, but the maths changes enough to know it.
Not taxes, but still payable
- Notary: typically €800–2,000 on residential deals.
- Land Registry: €400–1,000.
- Gestoría (tax filing and registration): €300–600.
- Independent lawyer: around 1 % — essential on international purchases.
- With a mortgage: valuation and financing costs.
Worked example: an €850,000 townhouse in Santanyí. Banded ITP ≈ €75,000; notary, registry, gestoría and lawyer ≈ €10,000–14,000. Total budget: about €940,000.
Two honest caveats to finish: rates change — these are the ones in force in 2026, last checked in September — and each buyer's personal situation alters the result. The full breakdown, with the payment calendar and the annual taxes that follow, is in our free buyer's guide.
