Our team at Blue Lines Real Estate has helped hundreds of buyers purchase property in Ibiza. We are knowledgeable, well connected and aware of all the pitfalls. We’re excited about helping you navigate your property-buying journey and ensuring that it is a happy and hassle-free experience. We will be with you every step of the way, but just so you know what’s ahead, here is a brief outline of the fees and the steps involved with buying your new property in Spain.
What costs and fees will I need to pay when I buy a property?
When you buy a property in Ibiza you need to pay tax. On new builds you will pay VAT (IVA), at 10% for housing and 21% for land, and stamp duty (AJD) at 1.5%. Other properties will demand the Property Conveyance Tax (ITP), which is paid to the tax office, where the property is located, less than one month after the final sales transaction. The tax rate is dependent upon the sale price. On properties up to €400,000 it is 8%; €400,000 to €599,999 demands 9%; €600,000 to €999,999 requires 10%; and for properties over €1,00,000 the tax is 11%.
The cost of notary fees is between 0.5% and 1% of the purchase price. This covers the processing of the transfer deed and registration at the Registro de la Propiedad (land registry).
Buyers taking out a loan from the bank will need to pay around 1% of the mortgage amount in fees and if contracting a broker’s services these usually cost an additional 0.25%. Don’t forget that if you’re applying for a mortgage you will need a Spanish bank account first, and make sure you include a clause in the contract that dissolves your liability to go through with the purchase if you can’t raise a mortgage.
What checks will need to be made on the property before purchasing?
Before buying a property in Spain it is advisable to carry out due diligence on the property you wish to purchase. You will need to hire a good real estate lawyer for this task and we can help with this by putting you in touch with independent lawyers from our tried and trusted network of professionals. Checks to carry out include: land and property registry (to verify ownership); verifying the property’s title deed; past building permissions (to ensure the building is legal); and confirming there aren’t any existing rental agreements or leases.
What should I expect from the buying process?

Before you purchase a property you need to have a 'NIE' (Numero de Identificación de Extranjero or Foreign Identification Number in English), a tax identification number, which we can help you to obtain.In terms of timing, if a sale is straightforward then the buying process itself can be wrapped up in a matter of weeks, but if it is more complicated it can take several months.After viewing a property and making an offer – with the Blue Lines team at your side, of course – your lawyer will carry out a building survey.

If you need a translator, this is the moment, but we speak several languages including English and Spanish, so usually our services have our clients covered. Once a sale agreement has been made, you can opt to take out a “private contract” ahead of the “sale purchase deed”. This is not a legal requirement, but some buyers and sellers prefer to take this route for peace of mind. There are several choices on the type of contract to take, depending on whether timescales or deposits are involved. They include: a “private purchase” contract, an “earnest money” contract or a “purchase option” contract.

The Blue Lines team can give you information on each option and help you decide which one is best for you. The final sale agreement will be drawn up in front of a notary with all parties present and once complete it will be entered into the official property registry within 60 days. Following this the VAT and Stamp Duty (if a new build) and Conveyance Tax (existing property) are due. Finally, buyers must not forget to notify the council by sending a copy of the title deed of ownership.

At Blue Lines, our focus is on you and your needs. Are you planning to sell your property? Or planning to buy? To learn more about how we work? Then come and talk to us...
Let us know how we can help and we will be in touch.


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