Ibiza’s Real Estate Tax Guide for 2025: What Buyers and Sellers Should Know

Buying or selling property in Ibiza involves several taxes and legal procedures. As of 2025, significant changes to Balearic tax laws have been introduced to ease the burden on local residents and young buyers, while Spain has also implemented new measures affecting high-net-worth property owners and foreign investors.

Whether you are a Spanish resident or an international investor, understanding the local tax landscape is essential for making informed decisions. This guide offers a comprehensive overview of property transfer taxes, ongoing ownership costs, and key regulations in Ibiza.


Buying Property in Ibiza: Resale or New Build?


Resale Properties – Transfer Tax (ITP)

When buying a second-hand property in Ibiza, you’ll pay ITP, a regional tax with progressive rates:

  • 8% on value up to €400,000
  • 9% on €400,000–€600,000
  • 10% on €600,000–€1,000,000
  • 12% on €1,000,000–€3,000,000
  • 13% on value above €3,000,000

For a resale home priced at €800,000, the total Transfer Tax (ITP) would be approximately €70,000, which equates to an effective rate of around 8.75%.

The tax must be paid by the buyer within 30 days of the purchase date, using Form Modelo 600, and submitted to the Balearic Tax Agency (ATIB). The amount is calculated based on the higher of the declared purchase price or the official appraised value of the property.


ITP Discounts (2025):

  • 4% ITP: First home ≤ €270,151, used as primary residence
  • 2% ITP: Young buyers (under 36) or people with disabilities, for first homes ≤ €270,151
  • 100% exemption: Local residents under 35 with modest income (≤ €52,800), buying a first home ≤ €270,000 (set to rise to €350,000), and financing at least 60% with a mortgage

To retain these benefits, the buyer must live in the property and maintain ownership for a minimum of three years; otherwise, the tax savings must be repaid.


New Properties – VAT (IVA) & Stamp Duty (AJD)

For new builds bought from a developer:

  • VAT (IVA): 10% of the purchase price (residential)
  • Stamp Duty (AJD):
    • 1.5% standard rate
    • 1.2% for first homes ≤ €270,151
    • 2% for properties ≥ €1 million
    • 2.5% for company-to-company sales waiving VAT exemption (rare)

Purchasing a newly built villa priced at €800,000 would incur €80,000 in VAT (IVA) and an additional €12,000 in Stamp Duty (AJD).

Both taxes are the responsibility of the buyer. IVA is paid directly to the seller as part of the transaction, while AJD must be filed separately with the Balearic Tax Office once the sale is completed.

It is also worth noting that, under current regulations, banks are required to cover the AJD associated with mortgage deeds, meaning buyers are only liable for the AJD on the property deed itself.

For a step-by-step overview tailored to Ibiza’s property market, take a look at our detailed Buyer´s Guide, where you’ll find expert insights tailored to purchasing property in Ibiza.


Can Bosc. Luxury villa integrated in nature with pool, green roofs and sea views

Selling Property in Ibiza: Taxes and Key Rules

If you’re selling property in Ibiza, you’ll face two main taxes: Capital Gains Tax (CGT) and the Plusvalía Municipal (municipal land tax). Your residency status—Spanish resident or non-resident—will determine how CGT is calculated.


Capital Gains Tax (CGT)


Spanish Residents:

  • CGT is applied progressively based on the profit:
    • 19% on the first €6,000
    • 21% on €6,001–€50,000
    • 23% on €50,001–€200,000
    • 27% on €200,001–€300,000
    • 30% on gains over €300,000

Exemptions apply if the seller is over 65 and selling their primary home, or if the proceeds are reinvested into another main residence in Spain.

Non-Residents:

  • A flat CGT rate of 19% applies to the entire gain.
  • Non-residents must file using Model 210 and pay within a few months after the sale.

Under the 3% withholding rule, the buyer is legally required to retain 3% of the property’s sale price and pay it directly to the Spanish Tax Agency on behalf of the seller. This amount serves as an advance payment towards the seller’s Capital Gains Tax liability.


Plusvalía Municipal (Municipal Land Tax)


  • Charged by the local council based on the increase in land value over the ownership period.
  • Calculated using either the cadastral land value or the actual profit—whichever results in a lower tax.
  • Typically paid by the seller within 30 days of the sale.
  • No tax is due if the property is sold at a loss.
  • The tax caps after 20 years of ownership; it does not increase beyond that point.

Thinking of selling? Our Seller´s Guide makes the process easy to understand and simple to follow.


Annual Property Taxes & Ongoing Obligations in Ibiza

Owning property in Ibiza involves several annual tax obligations for both residents and non-residents. The most common is the "Impuesto sobre Bienes Inmuebles" (IBI) — a local tax based on the cadastral value, with rates typically ranging from 0.4% to 1.1%. It is paid by the registered owner as of 1 January, and bills are usually issued mid-year.

For high-value holdings, Wealth Tax may apply. As of 2025, the first €3 million per person is exempt in the Balearic Islands. Residents are taxed on worldwide assets, while non-residents are taxed only on Spanish assets. Rates start at 0.28%, rising for wealth above €10 million. In addition, a Solidarity Tax applies nationwide to net assets over €3 million, with rates of up to 3.5%, although any local Wealth Tax paid may be offset

Non-resident owners must also declare an imputed income tax if the property is not rented out. This assumes a notional rental value based on the cadastral figure, taxed at 19% for EU/EEA residents and 24% for others, and filed annually using Modelo 210.


Other Regulations for Property Owners in Ibiza


No Restrictions on Foreign Buyers

As of 2025, foreigners—both EU and non-EU nationals—are free to purchase property in Ibiza, enjoying the same rights as Spanish citizens. Although restrictions on non-resident buyers have been considered, no such measures have been implemented. Foreign buyers are required to obtain an NIE (Foreigner Identification Number) and must declare the origin of funds in compliance with anti-money laundering regulations.


End of the Golden Visa

As of 2025, Spain has officially ended its ‘Golden Visa’ scheme for property investment. Non-EU citizens can no longer obtain residency by purchasing real estate worth €500,000 or more. Existing visa holders retain their status, and alternative residency routes such as business or government bond investment—may still be available.


Buyer and Seller Obligations Recap


Buyers

  • Budget 10–13% of the property price for taxes (ITP or IVA + AJD, depending on property type).
  • Withhold 3% of the purchase price when buying from a non-resident seller and pay it to the Spanish Tax Agency (legal requirement).
  • Obtain an NIE (Foreigner Identification Number) before purchase.
  • Plan currency exchange and international transfers well in advance.
  • Hire a local lawyer to check for any outstanding debts tied to the property (e.g. unpaid IBI or community fees), as these may transfer with ownership.

Sellers

  • Prepare to pay Capital Gains Tax (CGT) and plusvalía (local land tax).
  • If non-resident, inform the buyer of the 3% withholding and file Form 210 within 3 months of the sale to claim a refund or pay any difference.
  • Consider working with a tax advisor to calculate deductions and reduce taxable gain.
  • Residents selling their primary residence must reinvest the proceeds within two years to qualify for CGT exemption.
  • Ensure plusvalía is paid to the town hall within 30 days of the sale; notaries typically include reminders in the sale deed.


Regional Nuances in the Balearic Islands


While Spanish property law is largely consistent across the country, Ibiza and the wider Balearic Islands have a few regional regulations that property owners should be aware of:

  • Tourist Rental Licences: Short-term rentals (e.g. Airbnb-style lets) are strictly regulated. A licence is required, and not all properties are eligible due to zoning laws and community restrictions. Letting a property without a licence can result in significant fines.
  • Protected Rural Land: Certain areas are designated as "rustic" or protected land, subject to more restrictive building regulations. Buyers should always check local planning rules before purchasing land intended for development.
  • Inheritance and Gift Tax: The Balearic Islands have their own inheritance tax regulations, offering favourable exemptions for close relatives. Foreign owners are advised to seek estate planning advice, as Spanish inheritance laws — including forced heirship — may still apply.

Making Smart Moves in Ibiza’s Property Market

Owning or investing in property in Ibiza offers exceptional opportunities, but it also comes with important tax and legal responsibilities. Understanding the full scope of costs is essential for making informed decisions and avoiding unexpected expenses.

For peace of mind, it’s always best to consult official guidance or a trusted advisor. The Prestige Properties Team is here to support you every step of the way, offering expert advice to help you navigate the process smoothly and confidently.

Do you have any questions or need more info?
Send us a message and we will get back as quickly as possible!

    Top 5 Luxury Properties for Sale in Ibiza 2025

    If you’re seeking a unique and luxurious villa or property in Ibiza, you’ve come to the ideal place. This enchanting island boasts homes with elegant interiors, breathtaking swimming pools, panoramic sea and countryside views, and a wealth of natural beauty to create your own slice of paradise. Intrigued? Discover our top luxury properties for sale in Ibiza below.


    Exclusive Ibiza: Top 5 Premium Properties for Sale

    Explore the pinnacle of luxury living with our thoughtfully curated collection, featuring everything from hilltop villas and newly refurbished residences to breathtaking sea-view penthouses. Whether you prioritise expansive spaces, ultimate privacy, or a prime location, your ideal home awaits.


    Can Bosc

    A luxurious villa seamlessly blending with nature, featuring a pool, lush green roofs, and breathtaking sea views

    Can Bosc is an exquisite property that blends modern luxury with natural beauty, featuring a main residence and an annex. Thoughtfully designed with sustainability and advanced technology, it offers privacy, comfort, and breathtaking views of three nearby beaches. A discreet entrance is accessed through a beautifully landscaped path surrounded by lush vegetation, leading to a parking area that integrates harmoniously with the surroundings.

    The main house includes three ensuite bedrooms, with the master suite boasting a spacious dressing area. A cozy living room serves as a welcoming space for relaxation, while the high-end kitchen is equipped with premium appliances. The annex provides two additional ensuite double bedrooms, and the basement offers an extra room with windows, along with ample storage.

    Outdoors, the design embraces nature with green roofs, natural stone facades, and Mediterranean landscaping. A stunning pool serves as a focal point for leisure, while an outdoor kitchen enhances the al fresco dining experience. The home includes underfloor heating powered by an aerothermal system, an integrated Sonos sound system, and an advanced home automation system. The green roofs contribute to energy efficiency and insulation, and a private water well adds to its self-sufficiency. 

    Positioned in a privileged location, the house is oriented to maximise panoramic views of three pristine beaches. It strikes the perfect balance between tranquility and accessibility, with natural surroundings ensuring privacy while remaining close to essential amenities. The strategic orientation allows for abundant natural light throughout the day, making this property a truly exceptional retreat.

    Can Bosc. Luxury villa integrated in nature with pool, green roofs and sea views

    Villa Terracota

    Stunning Villa with 2 annexes and tennis court between Sa Caleta and Cala Jondal

    Villa Terracota is a beautifully renovated property in the sought-after Southeast region of Ibiza, just minutes from popular beaches like Sa Caleta and Cala Jondal. Surrounded by top restaurants and beach clubs, this villa offers an exceptional blend of luxury and lifestyle. The fully fenced estate features a main house with two bedrooms and two separate annexes, bringing the total to four bedrooms. The main house is thoughtfully designed with a modern kitchen, a living room with terrace and pool views, and en-suite bedrooms with private outdoor showers. The first annex includes a double bedroom, bathroom, living room, and fully equipped kitchen, offering stylish guest accommodations.

    The villa’s outdoor spaces are perfect for relaxation and entertainment, featuring an outdoor kitchen and bar, spacious dining and living areas, a poolside sundeck with sea views, and a rooftop chill-out area overlooking the Mediterranean. For active living, the property includes a private tennis court and an indoor/outdoor gym. Modern amenities such as hot and cold air conditioning, mains water, electricity, and fibre optic internet ensure year-round comfort and connectivity.

    Located in San José de Sa Talaia, Villa Terracota enjoys a south-facing orientation, guaranteeing sun on the pool and terraces throughout the day. Its proximity to Ibiza Town, the airport, and vibrant attractions makes it an excellent choice for a holiday retreat, investment property, or peaceful retirement home. 

    Villa Terracota. Stunning villa with 2 annexes and tennis court between Sa Caleta and Cala Jondal

    Can Estel

    Exceptional property near Santa Gertrudis and Morna college with rental license 

    Can Estel, exclusively offered by Prestige Properties Ibiza, is an exceptional estate blending traditional Ibizan architecture with modern elegance. Located just five minutes from Santa Gertrudis, this tranquil property offers privacy and ample space for year-round living or holiday retreats. The estate includes a renovated main house with three bedrooms, an annex with three additional bedrooms, and a separate studio, totalling seven bedrooms and five bathrooms. Its tourist rental license adds excellent investment potential.

    The property features convenient access via a well-maintained road, two gated entrances for privacy, and a carport for two vehicles with additional parking. The main house retains its traditional finca charm while offering modern updates, including stone walls, an open-plan living area, and a modern kitchen with a patio and BBQ. The annex provides two double bedrooms, a single bedroom, a cosy living room with a chimney, and a kitchen, while the studio adds versatility for extra accommodation or workspace.

    Surrounded by lush gardens, the estate boasts a swimming pool, vegetable garden, orchard, and winter garden. Its expansive grounds can also accommodate recreational spaces like a playground or tennis court. Modern amenities such as air conditioning, pellet heaters, and a private well ensure year-round comfort. Close to Santa Gertrudis and the Morna Valley School, Can Estel enjoys stunning countryside views and proximity to beaches, restaurants, and other attractions, making it ideal for families or as a rental property. 

    Can Estel. Exceptional property near Santa Gertrudis and Morna college with rental license

    Finca Can Verde

    Exceptional finca with heated saltwater pool in the tranquil Benimussa valley

    Finca Can Verde is an exceptional property for sale exclusively through Prestige Properties Ibiza, blending traditional Ibizan architecture with modern touches. Located in the tranquil Benimussa Valley, this 35,000 m² estate ensures privacy and offers plenty of outdoor space for relaxation or activities. The property spans 400 m², featuring 5 bedrooms, a heated saltwater pool, and several annexes, making it ideal for year-round living or holiday retreats.

    The finca is easily accessible via a well-maintained road, with two gated entrances. On-site, a carport accommodates two cars, with additional parking available. The house is divided into two sections: the original finca, with high ceilings, a dining room, a fully equipped kitchen, and a main bedroom with a walk-in wardrobe, and the modern extension built in 2009, which houses a living room, three double bedrooms, and three bathrooms. An additional annex can serve as an office, art studio, or extra bedroom, while another annex provides a storage room, laundry facilities, and a solar battery room.

    The exterior reflects the natural beauty of Ibiza, with ancient olive, almond, and citrus trees, as well as a tropical landscaped pool area featuring a 4x14m heated saltwater pool with an electric cover. The finca is designed for sustainability, with solar panels, a private water well, a large cistern, underfloor heating powered by gas, and a septic system.

    Located just 15 minutes from Ibiza Town and 25 minutes from the airport and beaches like Cala Bassa, the finca enjoys stunning countryside views and sun exposure throughout the day. Ideal for nature lovers, this off-grid retreat is perfect for year-round living or as a serene holiday escape. Contact us today to schedule a viewing or request a virtual tour.

    Finca Can Verde. Exceptional finca with heated saltwater pool in the tranquil Benimussa valley

    Villa Elegance

    A sophisticated modern villa featuring a pool and breathtaking sea views

    Villa Elegance is a stunning seafront residence in southwest Ibiza, featuring direct sea access and breathtaking views of the coastline, nearby islands, and spectacular sunsets. Set on a 700 m² fenced plot with 300 m² of living space, this stylish villa offers five ensuite bedrooms, a beautiful pool, and seamless indoor-outdoor living. Designed on a single level for convenience, it includes a spacious living area, a fully equipped kitchen with a dining space, and a master suite with a private lounge, dressing room, and pool terrace access. Three additional bedrooms are reached through a charming courtyard, while a fifth room doubles as a laundry area. 

    The outdoor spaces are thoughtfully landscaped with Mediterranean gardens, a large pool terrace, a covered dining area, and an upper-level solarium for stunning panoramic views. Equipped with air conditioning, double-glazed windows, and a recently renovated electrical and plumbing system, the villa ensures modern comfort. 

    Located in the exclusive gated community of Caló d’en Real, it offers privacy, two private sea access points just minutes away, and proximity to San José (10 minutes) and Ibiza town (25 minutes). Perfect for families, groups, or investors seeking a luxurious retreat, this villa combines style, comfort, and some of the island’s most spectacular sea views and sunsets.

    Villa Elegance. Elegant contemporary design villa with pool and stunning sea views

    Explore More Luxury Properties in Ibiza

    We hope you’ve enjoyed exploring our top 5 Ibiza properties currently on the market! To discover our full range of exclusive homes in Ibiza just follow the link below! 

    Take advantage of this opportunity and schedule your viewing today. Virtual tours are also available upon request. Reach out to us for further details.

    Do you have any questions or need more info?
    Send us a message and we will get back as quickly as possible!