26/05/2026
Property buyers in Mallorca almost always end up paying more than they expected.
Many foreign buyers still assume that if a property is listed for €1,000,000, that is roughly the amount they will pay. In reality, it doesn’t quite work like that…
In Spain, the advertised property price is only the beginning of the total costs involved.
In practice, when buying property in Mallorca, buyers should usually add around 10–13% on top of the purchase price.
Let me show you a few common examples:
▪️ A resale apartment listed at €700,000
The real total purchase cost will usually be around €770,000–€800,000
▪️ A villa priced at €2,500,000
The final amount paid may reach approximately €2,750,000–€2,850,000
So where do these additional costs come from?
For resale properties in the Balearic Islands, buyers pay ITP purchase tax, calculated on a progressive scale which can reach approximately 13% depending on the property value.
For new developments, the structure is different:
— 10% IVA (VAT)
— 1.5% AJD (stamp duty)
In addition, buyers usually pay for:
— lawyer/legal advisor fees to supervise the transaction: approximately 1% + VAT
— notary and land registry fees: usually between €2,000–€6,000 depending on the property value
— mortgage setup and bank-related costs (if financing is involved)
— NIE number registration (approximately €300)
— document translations and power of attorney arrangements (if required)
Important: the biggest issue is often not the taxes themselves.
The most expensive mistake is buying a property with hidden legal or technical problems, such as:
— illegal extensions
— renovation restrictions
— unregistered pools or terraces
— issues with tourist rental licences
Resolving these situations in Mallorca can sometimes cost tens or even hundreds of thousands of euros, while the legalisation process itself may take anywhere from several months to 2–3 years.
This is exactly why experienced legal and professional guidance here is not a formality, but part of making a safe investment.
For the peace of mind and security of our clients, we always begin the property search process with a full document review and by involving experienced lawyers and qualified specialists from the very beginning.