Resa Estates · Buyer’s Guide

Buying property
in Ibiza

A clear, step-by-step overview of the purchase process on the island — from the preliminary agreement to the notary, mortgages, taxes and the costs that come with them.

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Introduction

Resa Estates is a real estate agency in Ibiza, with over 10 years of experience in buying, selling, renovating, and renting properties for both long and short-term stays.

Whether you are buying or selling, Resa Estates believes it is vital to make this process as easy, efficient, and transparent as possible. Working closely with our legal team and the local authorities, Resa Estates always ensures that both parties are satisfied, keeping our clients’ best interests at heart.

Before closing

What must be in order.

Checking outstanding payments: We always request the most recent proof of payment for municipal and property taxes. These must also be presented at the closing.
Energy Certificate: Since July 2013, every property must hold an energy performance certificate. The selling party is responsible for providing this.

Reservation & preliminary purchase agreement

From agreement to the notary.

01
Legal verification
Once an agreement is reached between the buyer and seller, the lawyer will verify if the property can legally be transferred.
02
Preliminary purchase agreement
A preliminary purchase agreement is drafted, and an initial deposit — usually 10% of the agreed price — is transferred to the buyer or paid into a notary’s escrow account.
03
Closing before the notary
The remaining balance is paid at the time of closing before the notary.
04
Registration
Both the reservation and the preliminary purchase agreement must always be registered with the Property Registry. This ensures other potential buyers can see that the property has already been taken off the market.

Mortgage

Financing your purchase.

Banks generally finance 60% up to a maximum of 70% of the purchase price or the appraisal value of the property (whichever value is lower). When buying a property, you must also take purchase costs and mortgage fees into account. The maximum mortgage in Spain for purchasing a so-called finca or rustic property is capped at 60%. You will need to cover the remaining amount with your own funds. This can be done, for example, through a mortgage refinance or increase in your home country, or with personal savings.

To qualify for a maximum mortgage in Spain, you must first and foremost be able to prove your income. This can be income from permanent employment, self-employment, rental income, or returns on investments. In any case, it must be fully verifiable. Self-employed entrepreneurs must be able to present financial statements for the last two years.

Furthermore, banks apply income criteria to determine the maximum mortgage amount. While each bank uses its own calculation method, you can generally apply the following formula: you are allowed to spend up to 35% of your net annual income on total credit or rental obligations.

In addition to income criteria, Spanish banks evaluate mortgage applications based on family composition, whether you rent or own your current home, the number and age of your children, your job type, your income source, and your professional sector.

60 – 70%

Generally financed by banks, of purchase price or appraisal value (whichever is lower)

60%

Maximum mortgage for a finca or rustic property

35%

Of net annual income allowed for total credit or rental obligations

Taxes & additional costs

What to account for.

Transfer tax (ITP): 8 – 11%; Due on the purchase of an existing property. Impuesto sobre Transmisiones Patrimoniales varies by region; in the Balearic Islands it currently ranges between 8% and 11%.
AJD Stamp Duty: Indirect tax; Applied only to property transfers and not to capital or inheritances — it applies when you buy or sell a car, real estate, or the use of land, for example.
Notary fees: circa 1%; Approximately 1% of the property value. Normally the notary also registers the property with the Property Registry — always double-check this. This involves extra costs, which will only be disclosed after the closing.
VAT (IVA): Newly built; Applicable in the case of newly built properties.
Legal fees: circa 1%; Lawyers generally charge around 1%. Always request a quote.
Property Registry (Registro): circa 1%; Around 1% of the purchase price. The exact amount is only known at the time of the transfer.

Next step

Let’s talk through your purchase, at your own pace.