ITP in the Balearic Islands 2026: What You’ll Really Pay When Buying a Resale Home

The price you see in the listing is never the final price. When buying a resale home in Mallorca, the Property Transfer Tax (Impuesto de Transmisiones Patrimoniales, ITP) is usually the item that surprises foreign buyers most, because in the Balearic Islands it isn’t a fixed percentage: it depends on the value of the property, the buyer’s age, and family size.

In short: ITP in the Balearic Islands is progressive, from 8% to 13% depending on the property’s value. There’s a reduced 2% rate for under-36s and large families, which applies to the first value bracket (not the total price), with the rest taxed at the general rate. It’s settled via the Modelo 600 form with the ATIB within 30 working days of signing. As a budgeting reference, set aside between 9% and 10% extra for a used home in the general market range.

What ITP is and when it applies

ITP taxes the sale of resale homes between private individuals, or between a private individual and a company not acting as a developer. It’s a regional tax, so each autonomous community sets its own scale, and the Balearic Islands apply one of the highest in Spain in the upper brackets.

The general rate: progressive, from 8% to 13%

In the Balearic Islands, ITP isn’t applied as a single percentage on the total price, but in brackets: each value band is taxed at a different rate, and only the portion of the price that falls within each bracket is taxed at that bracket’s rate. The general scale, indicative and subject to updates, is roughly as follows:

Value bracket	Rate applicable to that bracket
Up to €400,000	8%
€400,000 to €600,000	9%
€600,000 to €1,000,000	10%
€1,000,000 to €2,000,000	12%
Over €2,000,000	13%

As with income tax, this is a progressive, bracket-based scale: if you buy a €700,000 home, you don’t pay 10% on the total, but 8% on the first €400,000, 9% on the next €200,000, and 10% on the last €100,000.

The result is that the real effective rate — total tax divided by price — almost always ends up below the marginal rate of the highest bracket the property falls into. Since these brackets can be updated, the most reliable approach is to ask your advisor or notary for the exact calculation applied to the property’s specific price before signing.

The reduced 2% rate: under-36s and large families

There’s a significant reduction for certain buyer profiles — people under 36, large families, single-parent families, and people with disabilities buying their main home — a reduced 2% rate on the first bracket of the property’s value, instead of the general rate.

The threshold up to which this reduced rate applies is periodically reviewed by the Balearic Islands Tax Agency (ATIB), so it’s worth confirming the exact figure in force at the time of purchase.

The important nuance, and the one that causes the most confusion, is that this reduction applies marginally, not as an all-or-nothing benefit: the 2% taxes only the portion of the price within the reduced threshold, and the rest of the value — if the property costs more than that threshold — is taxed at the general bracket rate, just like any other purchase.

There’s no “cliff edge” that makes you lose the entire benefit by exceeding the limit by one euro: simply, beyond that point, the rest is taxed as a normal purchase. Even so, the budget difference between fitting or not fitting this profile is considerable, so anyone close to the threshold should ask their advisor for the exact calculation before setting the purchase price.

How and when it’s settled: the Modelo 600 and the ATIB

ITP is self-assessed via the Modelo 600 form with the ATIB (Agència Tributària de les Illes Balears), within 30 working days of the date the public deed of sale is signed before a notary.

In practice, this step is usually handled by the advisor or lawyer managing the deal, but ultimate responsibility for settling it on time lies with the buyer, and late payment generates surcharges and interest.

New-build homes: a different tax, not ITP

Everything above applies to resale homes. If you’re buying a new build — directly from the developer, on first transfer — ITP doesn’t come into play: you pay 10% VAT plus Stamp Duty (Impuesto de Actos Jurídicos Documentados, AJD), whose general rate in the Balearic Islands is around 1.2%–1.5% depending on the type of transaction, with reduced rates for the same profiles that benefit from reduced ITP.

A common mistake among foreign buyers is budgeting for ITP on a property that’s actually taxed under the new-build route, so it’s worth confirming from the outset whether the seller is a private individual or a developer, and asking your advisor for the exact applicable AJD rate.

How much to budget in practice

As an indicative reference for planning your total purchase budget — adding ITP, notary, land registry and administrative fees — it’s worth setting aside:

• Between 9% and 10% extra on top of the purchase price, for a used home in the general market range.
• Between 13% and 14%, for luxury-segment deals, where the top ITP bracket carries more relative weight.

These figures are indicative: the exact amount depends on the final price, the applicable bracket, and whether the buyer qualifies for the reduced rate. Given the complexity of the scale and its periodic updates, the practical recommendation is always to have a tax advisor or administrative agent do the final calculation before signing the reservation contract (contrato de arras) — not after.

Frequently asked questions

Is ITP paid on the deed price or the cadastral reference value?
It’s paid on whichever is higher: the price agreed in the deed or the reference value published by the Cadastre, if that’s higher.

Can I apply the reduced rate if I buy with someone who doesn’t meet the requirements?
Generally the reduced rate applies only to the proportional share of whoever meets the requirements, not to the whole purchase; it’s worth confirming this with your advisor for your specific case.

What happens if I don’t settle ITP within the 30 working days?
Surcharges apply that increase the longer you wait, plus late-payment interest, so it’s best to settle it as soon as possible after signing.

Is ITP the only tax I pay when buying?
No: besides ITP you need to budget for notary fees, land registry, and, if you don’t reside in Spain, your annual obligations as a non-resident.

Before signing, also make sure you’ve sorted your NIE, and if you won’t be residing in Spain, check our guide on IRNR and the Modelo 210 to understand your tax obligations after the purchase.