Taxes Payable When Buying Property in Mallorca
When buying a property in Mallorca, the buyer pays several mandatory taxes and fees in addition to the value of the property. The first of these is the IVA tax – a Russian equivalent of the VAT, which currently stands at 8%.
When buying a home, a stamp duty (AJD) is also charged, which in the Balearic Islands is 1%.
When buying a home on the secondary housing market, the property transfer tax (ITP) has to be paid, which varies depending on the region of Spain. On average, it is about 8%.
Below you will find an approximate cost calculation when buying a property worth 250.000 euros in the primary market:
· VAT (IVA) 8% – 20,000 Euro
· Stamp duty (IAJD) 0.5% – 1,250 Euro
· Notary – 1,097 Euro
· Property Registry – 517 Euro
· Paperwork – 525 Euro
· VAT (notary, property register, paperwork) – 34 Euro
Total – 23,423 Euro
Be sure to take into account the costs arising out of legal support for the transaction, these expenses do not exceed 1% of the property value.
The calculation is given as an example, therefore individual conditions and particularities will apply for each of the properties.