Buying a property in Ibiza is certainly an incredibly exciting time. However, although exciting, it is also a very serious game! We highly recommend that all clients embarking on the property buyer’s journey, particularly from international backgrounds, fully inform themselves on the Spanish buying procedure, which can often entail a multitude of differences in legalities, costs and considerations when compared to the rest of Europe.
We’ve put together an easy-read blog on our most frequently asked questions, with numerous links to various guides, island locations and detailed articles, that will help the serious buyer find all the informative answers they need.
Here’s everything you need to know before buying a new home on the island of Ibiza…
What do I need to consider when buying a property in Ibiza?
When you are considering buying a property there are several things you will need to take into consideration;
- What is the current housing market status in Ibiza?
- Is it a good time to invest in property?
- What is the property buying procedure in Spain?
- Do I need a Lawyer, Notary, and Gestor?
- Do I need residency, social security and Spanish Documentation (NIE/TIE)?
- Do I need a Spanish bank account?
- What are the related costs and legal fees when buying a property in Ibiza?
- Can I get a Spanish mortgage or will an overseas mortgage be accepted?
- Can I buy to let and obtain a Rental License for my Property in Ibiza?
- What are the best areas to buy a property in Ibiza?
- How can I find a reliable real estate agent and where do I start?
If you’ve been pondering these questions, and you’re keen to get better acquainted with buying a property in Ibiza, then read on and expand your knowledge from our experienced team of real estate agents.
Is it a Good Time to Invest in Property in Ibiza 2021?
Yes! And, we cannot emphasize this enough. Our 2020 Annual Ibiza Property Marketing Report and 2021 Forecast demonstrates the luxury housing market in Ibiza has remained unwavered throughout 2020 and during the first half of 2021.
In fact the immense pursuit from international clients has led to the high-end property market finding itself with a continued occurrence of a low supply versus a high demand. Naturally, where there is demand, areas become highly sought after, and even those smaller, lower costing properties, terrace housing, and apartments have taken a significant leap in value, creating an unwavering price curve for the whole of the Baleares.
What is the procedure to Buy a Property in Ibiza?
There are three notable phases when buying a home in Ibiza. Negotiation and Agreement, The Private Contract and Deposit Payment, and finally, The Sale Purchase Deed.
It is paramount that all buyers are aware of all the phases entailed in the property buying process in Spain. Our detailed Buyers Guide has been purposely written to help clients fully understand these three notable phases, and learn about the expenses related to buying a property in Ibiza.
To find out more about the seller’s expenses and responsibilities – read our Sellers Guide article.
What is the Role of a Notary, Lawyer & Gestor in Ibiza?
A Gestor is appointed for all the administration when buying a property in Spain, usually working as part of a Gestoria, otherwise known as an administration office.
To proceed through to completion of a sale, and become the legal owner of a new home in Ibiza, a Notary must legally complete a notarial deed. They are responsible for ensuring there are no outstanding claims on a property, and checking whether the property may be sold to a new buyer.
A Lawyer is responsible for all due diligence checks e.g. outstanding debt on the property, up-to-date payments on outstanding taxes paid, land registry data, building licenses and contracts.
Legal Construction Survey – A construction survey is usually completed by the local municipality for all newly built houses. Unless the property has obvious deficiencies, it is not usual to carry out a construction survey during a purchase here in Ibiza,. However, it is possible to hire a technician or architect who will review the state of the property if the buyer so wishes.
Do I need a Spanish Bank Account to buy a property in Ibiza?
Yes, it is a requirement to have a Spanish bank account in order to buy a property in Ibiza. The Spanish banks require a PASSPORT number to open an account. It is not necessary to have a NIE number in order to open or use a bank account – especially for non-residents.
What documentation is needed to purchase a Home in Ibiza?
The following documentation is required before signing the title deed when buying a property in Ibiza:
- Original personal ID card or passport
- Original NIE / TIE Number (an all-purpose foreigner’s identification and tax number)
- Bank cheque or proof of bank transfers. According to the payment conditions.
- Spanish Bank Account Details
- Receipts for any payments already made
Your Gestor can guide you through the necessary documentation and help arrange all the required documents for you.
What are the Extra Costs of Buying a Property in Ibiza?
Generally, the total costs of buying a property in Ibiza can range between 8% to 12% of the purchase price and include the following:
- Taxes: ITP 8-11% or 10% VAT + 1.5% Stamp Duty
- Mortgage costs: 0% (since the new Ley Hipotecaria) or 0.5% of the mortgage amount if hiring a mortgage broker
- Attorney/Consultancy fees: 1%
- Notary & Property Registry fees: 0.1% – 0.5% (or less)
- Banking expenses: Various
The exact figures and variations can be seen in our Buyers Guide, which provides a comprehensive account of all the current taxes and additional costs related to buying a property in Ibiza.
Buying a property in Ibiza: Can I Get a Mortgage?
The short answer is: Yes, you can. Like anywhere else, you will have to fulfill certain criteria regarding income and fluidity, and the legalities of the property you wish to take the mortgage out over also plays an important part, however, there are generally few obstacles to asking for a mortgage in Ibiza.
If you wish to find out more about eligibility for getting a mortgage in Ibiza, then head to our interview blog, "Everything you need to know about getting a Mortgage in Ibiza" with CEO & Founder and leading expert at BMS (Balearic Mortgage Services), Bettina Lorenz.
Can I buy to let and obtain a Rental License for my Property in Ibiza?
If you wish to rent the property you are purchasing on a short-term basis or as a vacation home, then you will need to apply for a rental license, however, certain criteria will need to be met to qualify for a rental license and not all properties will meet these criteria.
It is illegal to rent an apartment for short-term holiday rentals with an exception of renting on a long-term basis (minimum 3 months) to one contracted tenant.
Which areas are best to buy a property in Ibiza?
The island of Ibiza is inundated with beautiful locations and plenty of diversity to suit all buyers looking to relocate or invest in a second home. Typically, Ibiza is divided into five municipalities, and we would highly recommend seeking the right location(s) that are most appealing before venturing on property viewings. Here are some small insights into each municipality below, with links to our informative articles to help you make the right location decision.
Buying a property in Ibiza: San José
Sant Josep de Sa Talaia, in the south-west of the island, consists of four charming villages, spectacular scenery and coastlines, archaeological Phoenician settlements, and an array of historical heritage sites. The culture and style of the municipality of San José varies throughout, from authentic charm to high profile and favoured ‘A’-list celebrity spots.
Read our article, "Why buy a property in Sant Josep de Sa Talaia" to find out more!
Check out our location page with more info on San José and to see all Current Properties for Sale in San José.
Buying a property in Ibiza: Santa Eulalia
The Municipality of Santa Eulalia del Rio, encompassing the island’s east coast as well as much of the centre inland, is typically characterised by its idyllic family-friendly areas and returning tourism. The area boasts beautiful beaches, spectacular forestry, agricultural farmland, charming villages like the popular Santa Gertrudis, a Marina Port, and hosts a busy and vibrant atmosphere with restaurants and amenities open all year round.
Read our article, "Why buy a property in Santa Eulalia del Rio" to find out more!
Check out our location page with more info on Santa Eulalia and to see all Current Properties for Sale in Santa Eulalia.
Buying a property in Ibiza: Eivissa – Ibiza Town
Widely recognised by its World Heritage Site, the city is divided into, Dalt Vila (The Old Town), and the modern extension, Eixample. Additionally, Ibiza hosts two popular beaches, Talamanca and Figueretas, and just a few moments drive away sits the VIP area of Marina Botafoch where a front row set of luxury apartments and penthouses reside.
Buying a property in Ibiza: San Juan
The municipality of Sant Joan de Labritja, located in the very North of the island, is typically characterised by its expansive rural areas and farmland. The unspoilt rustic municipality boasts four charming villages, plus some of the island’s most outstanding and picturesque beaches, such as Benirrás and the Bay of Cala Xarraca. The culture, community, and style of the municipality is reasonably diverse with both locals and international residents. However, the area is renowned for its laid back approach to life with a typical bohemian-hippy-chic label.
Check out our location page with more info on San Juan and to see all Current Properties for Sale in Sant Joan. Or head over to our article about "Living in Sant Joan".
Buying a property in Ibiza: San Antonio
The municipality of Sant Antoni de Portmany, typically characterised by its prominent tourism, is famous for its glorious sunsets, beautiful beaches and vibrant nightlife. However, aside from it’s tourism popularity, Sant Antoni de Portmany also offers many versatile and relatively less well-known aspects, including some of the island’s most secluded beach hotspots and Michelin star dining experiences.
Check out our location page with more info on San Antonio and to see all Current Properties for Sale in San Antonio. You can also check out our very informative article "Life in San Antonio: Debunking it’s Misconceptions".
How do I choose the right Professional and Reliable Real Estate Agency in Ibiza?
We cannot stress enough just how important it is to fully trust your real estate agent and ensure they know how to close a deal. We always recommend that you work with a reputable real estate agency from Ibiza.
There are many private people who promote themselves as real estate agents, who are not industry professionals, committed, trustworthy, or can guide you correctly through the property buying procedure. Save yourself time, hassle, and problems by ensuring you pick the right real estate agent, with both solid history and confident client reviews, right here in Ibiza.For some additional tips and tricks on how to navigate the sometimes rather confusing Ibiza Real Estate Market, check out our buyer’s ultimate guide to sanity during the search for the perfect home in Ibiza – "Ibiza Real Estate: Welcome to the Jungle", written by one of our top agents, Inge Van Knippenberg.