When buying a property in Ibiza it’s important to get all your ducks in a row as there is a lot of paperwork to be done. Here’s a quick breakdown of the steps you need to take before you can buy your perfect property:
1. Get a Lawyer
2. Get an NIE Number (this is the Spanish version of a National Insurance number)
You will need this before you open your bank account.
3. Open your Spanish Bank Account
This is recommended because it works in the buyer’s favour, as when the offer goes through all the rest of the other details will already be organised.
4. Organise the Transfer Tax
This is a tax applicable to most private buyers purchasing a property if the “minimum fiscal value” of the property as per the Regional Government, is greater than the price, usually between 8-10%.
5. Pay VAT & Stamp Duty
Brand New Properties (Villas, Apartments, Garages) = 10% +1.5%
Re-sale Properties/Land = 21% +1.5%
6. Pay Registration & Notary Fees
This price will vary depending on the value of the property and the length and complexity of the document, but try to budget around €3,000
7. Plus Valia (Municipal Added Value Tax)
This can be negotiated with the seller – as it depends on how many times the property has been sold – it’s a tax from the town hall and could be anything between a couple of thousand to a couple of hundred euros.
8. Lawyers’ Fees
Usually, these are around 1% of the value of the property – it is case dependent though.
So… how much is this all going to cost?
The average estimate of the cost of buying a property in Ibiza is under 12% + lawyers fee.