When you buy a Property in Mallorca, or any other place in Spain, transmission tax has to be paid. Purchase tax in Mallorca are different depending of the property you are buying. As you will see if you use my Mallorca’s buying tax calculator, in case you buy a brand new property you will pay IVA tax. In case the property you are buying it’s not new, you will pay transmission tax (ITP) for your property purchase in Mallorca.
The best way to calculate the taxes arising you purchase in Mallorca, it’s sending me the details and in a few hours you will get a breakdown, not only with the exact amount of taxes but also with the costs of buying the property in Mallorca.
The vendor it’s a promoter, a company who had developed the property. In some cases, the promoter had both an old property but has fully reconverted.
The IVA tax may be 4%, 10% or 21% depending of the characteristics of the property you are buying.
This tax it’s going to be paid the same day you buy the property. Vendor will withhold it and wire it to tax offices.
Transmission tax will be paid when you buy a second house in Mallorca and in this case the amount that you will paid it’s progressive. So, it depend o the purchase price. For properties under 400.000 euros you will pay 8%, that tax will rise up step by step up to 11’5%.
NOTE: Transfer tax will increase from 1 January 2023
This tax has to be paid in a period of 30 days after the purchase.
Before you close the deal it’s essential to know the final cost of your purchase, so I recommend you to use my Mallorca’s buying tax calculator service.
From January 1st 2023 purchase of property in the Balearic Islands increased for properties worth more than 1 million euros.However, the increase affects the tranche that exceeds 1 million euros and not the taxes paid from 0 to 999,999 euros.Today, the brackets are as follows: from 0 to 400,000 euros 8% is paid, from 400,000 […]
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