NIE, taxes and the real cost of buying property in the Balearics
Beyond the price: purchase taxes, notary, registry and the annual taxation of the non-resident owner in the Balearics.
When budgeting a home purchase in Mallorca, add taxes and costs to the price. These are the main ones for a foreign buyer.
Purchase taxes
For resale homes you pay Transfer Tax (ITP), with tiered rates in the Balearics. For new-builds you pay VAT plus Stamp Duty. Notary, registry and administrative fees are added on top.
Annual non-resident taxation
If you are not resident in Spain, each year you must file form 210 (IRNR) for your home, even if you do not rent it. If you rent it, you are taxed on the income. We calculate and file it so you get no surprises.
When you sell
When you sell as a non-resident, the buyer withholds 3% of the price on account of your gain. If the withholding exceeds the actual tax, we handle the refund.