Real Estate in Spain

Spain is one of Europe’s most dynamic housing markets in 2026; in the Balearic Islands, purchase prices rose by 13.7 % year on year in the second quarter according to the INE house price index, while asking prices on idealista were up 4.1 % in September. The index measures notarised sales, idealista the prices in listings. Almost one in seven home purchases in Spain goes to foreign buyers. We support you with your plans.

Locations

• Mallorca: Palma, South-west, Tramuntana, South-east
• Ibiza: Ibiza Town, Santa Eulària des Riu, Sant Josep de sa Talaia, North

Market Figures Spain

Buying and Costs

• Resale: transfer tax (ITP) in the Balearic Islands tiered from 8 % to 13 % (Agència Tributària de les Illes Balears).
• New build from the developer: VAT (IVA) 10 % (Agencia Tributaria), plus stamp duty (AJD) in the Balearic Islands of 1.5 %, 2 % from €1m (ATIB).
• Total purchase costs: approx. 10 to 15 %, depending on price (BELLAZZURA estimate, non-binding).

Notes for Foreign Buyers

• Foreign buyers need a Spanish tax identification number (NIE).
• In the Balearic Islands, new holiday rentals in apartment buildings have been prohibited since April 2025 (Decreto-ley 4/2025, BOE). Anyone wishing to let needs an existing licence.
• The residence permit for property investors (Golden Visa) was abolished on 3 April 2025 (Spanish government).
• Before the purchase we check the land register, building permits and holiday rental licences.
• We state our commission and that of the local partner office in text form before the search begins.