The answer is simple; Every purchase is different and to calculate it you need to know the details of the property.
The direct taxes that are paid when you purchase a house in Mallorca are progressive.
The indirect taxes that are paid annually for having a house in Mallorca, depend on the location and size of the property.
Also, Wealth tax has to be paid if your assets are more than 700.000 euros.
Would you like to get a fairly accurate calculation of the taxes you will be paying?
Send me now the sale price indicating also (if possible) the municipality or address. You’ll receive the calculations in just a few hours.
This calculation is totally free and does not suppose any commitment on your part.
This calculation will include:
Taxes when buying a Property in Mallorca
BRAND NEW PROPERTY
A) 4% VAT. These are properties built with government subsidies.
B) 10% VAT. Properties built by a property developer to be marketed as new homes.
C) 21% VAT. Commercial premises or commercial property with a residential part
—In top of this you have to pay another 1.2% Stamp Duty Tax—
SECOND HAND PROPERTY (USED ONE) . Those are any other different to previous ones.
In this case you have to pay Transmission Tax; “Impuesto de Transmisiones Patrimoniales, ITP“. This tax, which must be paid within 30 days of purchase, is progressive.
For the first step of 1 euro up to 400,000 euros 8% is paid.
For the second step of 400,001 euros up to 600,000 euros, you pay 9%.
For the third step from 600,001 euros to 1,000,000 euros you pay 10%.
And for the fourth step, which is all that exceeds one million euros, 11% is paid.
ALSO, YOU HAVE TO PAY YEARLY TAXES FOR HOLDING A PROPERTY IN MALLORCA
IBI ( Impuesto de Bienes Inmuebles)
Wealth tax. This one it’s also progressive and will depend on of ALL YOUR ASSETS IN SPAIN if you are non-resident. If you become tax resident in Spain then will depend on of ALL YOUR ASSETS WORLD WIDE.
Why don’t you try my skills for free?
Type me the price (and optionaly other details) of the property you are willing to buy and I’ll send you the breakdown of taxes and expenses.