Property Transfer Tax (ITP) Mallorca

How high is the property transfer tax (ITP) on Mallorca?

The property transfer tax (Impuesto sobre Transmisiones Patrimoniales, ITP) on Mallorca ranges, depending on the purchase price, between an entry rate of 8% and a top rate of 13% – the Balearics apply a progressive scale according to price bands. Because each band only applies to the portion of the amount falling within it, you never pay the top rate on the entire purchase price, but end up with a lower average rate (tipo medio). The calculator above works out this average rate and the specific tax amount for your own purchase price in real time.

How it's calculated

The ITP works like a tiered model, similar to German income tax: the purchase price is conceptually broken down into several price bands, and each band carries its own rate – from an entry rate of 8% up to a top rate of 13%. Importantly, these are marginal rates, not flat rates. The tax actually payable results from the sum of the individual partial amounts, and from that in turn the tipo medio – the average rate you effectively pay on your entire purchase price. Anyone searching online for the ITP on Mallorca will therefore often come across conflicting figures: sometimes the marginal rate of the highest band reached is meant, sometimes the average rate. For your own calculation, only the latter counts – and that is exactly what the calculator above provides.

Tax base: the higher of two values

The ITP is not necessarily calculated on the amount stated in the notarial deed of sale (escritura). Since 2022, the rule across Spain is: the tax base is the higher value out of the notarised purchase price and the official reference value (Valor de Referencia), which the Spanish land registry (Catastro – the Spanish land registry authority) derives annually from market data. If the reference value is higher than the agreed purchase price, you still pay tax on the reference value – if you overlook this, the ATIB (Agència Tributària de les Illes Balears, the Balearic tax authority) will claim the difference to the lower purchase price retroactively. On Mallorca, where market prices are often high, the reference value is frequently lower than the purchase price – but with negotiated prices well below market level, this can be reversed. You can look up the reference value of a specific property in advance online via the Catastro.

The two-figure logic of the tax reliefs

Since 14 June 2026 (Ley 4/2026), Balearic tax law has worked with two separate figures for the tax reliefs, which are often confused:

• The island value threshold determines WHETHER you're entitled to a reduction at all. On Mallorca and Menorca it stands at €331,859.70, on Eivissa (Ibiza) and Formentera at €378,211.68 – the calculator automatically applies the correct figure for your island.
• The assessment ceiling of €270,151.20 determines which part of the value the reduced rate actually applies to. If your property value exceeds this, only the portion up to this limit is taxed at the reduced rate – the portion above it is taxed at the rate applicable to the amount above the assessment ceiling (8%).

The island value threshold is not a tax-free allowance. It only determines whether you're entitled to a reduction at all – not how far it extends. That is governed solely by the separate assessment ceiling.

This distinction is the most common stumbling block: raising the value threshold doesn't mean more of the purchase price becomes tax-free – it only means more buyers gain access to the reduction in the first place. The calculator above automatically applies both figures in the correct order.

Worked examples

The system becomes clearest through typical cases. Among others, the calculator above includes the following scenarios:

• The under-30 with full reduction: A buyer under 30 years old who uses the flat as their main residence (vivienda habitual – the home where you actually and permanently live, not a holiday property) and meets all the requirements for the full reduction pays significantly less in effect than in the standard case. The calculator shows how much this affects the final amount as soon as you enter your purchase price and select this buyer profile.
• The under-36 just above the assessment ceiling: If the property value is only slightly above the assessment ceiling, the reduced rate still applies – but only up to the limit, not to the entire purchase price. The excess amount is taxed separately at the rate for the amount above the threshold. The calculator shows you live how big the difference is between 'just barely above' and 'well above'.
• The standard case in the higher price segment: Without any special rule – for example, for a second property or a purchase price well above the island value threshold – the full progressive scale applies without any reduction. This is the case that actually applies to many Mallorca purchases in the higher price segment.

Only the calculator provides the concrete figures: enter your purchase price, select the island and buyer profile, and you'll immediately see the tax burden, the average rate and the reduction applied – alongside the standard case, so you can see the savings. If you're still looking for a suitable property, take a look beforehand at current property listings in Mallorca.

Special cases: who gets which reduction

Balearic tax law recognises several situations in which, instead of the general rate, a reduced rate or a subsequent bonificación (bonificación – a discount on the tax liability already calculated) applies. The calculator automatically draws all the rates mentioned below from the currently stored register.

All rates and bonificaciones apply to the portion of the value up to the assessment ceiling; the excess portion is subject to the general rate. Which combination results in the lowest tax for your case is shown by the calculator above when you switch the buyer profile.

Main residence, general

If you buy a property as your main residence (vivienda habitual) and its value remains below the value threshold for your island, a reduced rate of 4% applies to the portion of the value up to the assessment ceiling. The requirement is that you actually live there – not merely register your address there.

Under 36 years old and first home

If you are younger than 36 years old at the time of purchase and are acquiring your first home, a further reduced rate of 2% applies to the favoured portion of the value – again limited by the assessment ceiling.

Disability of an ancestor or descendant

The same reduced rate as for first-home purchases under 36 years of age also applies if, in your most recently filed income tax return, you were entitled to the minimum disability allowance for ascendants or descendants – that is, for parents, grandparents or children with an officially recognised disability, for whom you are responsible for tax purposes. A disability of the purchaser themselves, however, belongs in the next section: it does not lead to this reduced rate, but rather to the full bonification from the legal minimum degree onwards.

Large families and single-parent families

Families with the official status of a large family (familia numerosa) as well as single parents with children recognised as such pay a reduced rate of 2% on the favoured portion of the value. The recognition certificate must already be in place at the time of purchase.

Under 30 years of age or disability of 33 percent or more: full bonification

The strongest benefit is not a reduction of the rate, but a bonification of 100% on the already calculated tax liability. It only applies if you meet all of the following conditions simultaneously:

• You are under 30 years of age at the time of purchase, or you have a recognised disability of a degree of 33 percent or more.
• You had already held habitual residence (residencia habitual) in the Balearics for three years immediately prior to the purchase.
• This is your first home, and you are acquiring at least half of it in full ownership (pleno dominio) – that is, not merely a usufruct or a mere share.
• You do not already hold a share of half or more in any other home.
• Your income according to your most recent income tax return is below the income threshold legally set for this purpose.
• A substantial part of the purchase price is financed through a mortgage loan that covers at least the legally required minimum proportion of the property's appraised value.

If even one of these conditions is not met, the full bonification does not apply – the calculator then automatically checks whether at least one of the other reduced rates applies.

Price-capped housing (HPL)

For price-capped housing (habitatge de preu limitat, in Spanish vivienda de precio limitado, abbreviated HPL – housing whose sale price is capped by law) a separate bonification of 50% applies to the calculated tax liability, regardless of the buyers' age.

Subsequent assessment: when a requirement is no longer met later on

All the benefits mentioned are subject to conditions that must continue to be met even after the purchase – above all, actual use as a main home. If a requirement subsequently ceases to apply (you let the home out on a permanent basis, you move out again within the minimum period, or it turns out that a condition was never met), you are obliged to submit a supplementary self-assessment within one month and pay the difference to the general rate – plus late-payment interest. The ATIB actively checks this within its limitation period.

Deadlines and forms

After the notarial deed (escritura) is signed, you have one month to calculate and declare the tax yourself – this is done via Modelo 600, the official form for self-assessment (autoliquidación) of the ITP. The deadline begins on the day of the legal transaction, not on the day of registration in the land registry. An extension is generally possible, but must be requested before the original deadline expires.

Payment is made to the ATIB, either online or at an authorised bank. The payment receipt is not a mere formality: without it, the land registry (Registro de la Propiedad) will not register the transfer of ownership.

Without the ATIB payment receipt, the land registry will not carry out the registration – so keep it safe, even if the notary appointment was a while ago.

Anyone who misses the deadline risks staggered surcharges and late-payment interest on the tax debt – how high these turn out to be in a given case depends on how much time has passed since the deadline expired. For context: the ITP applies exclusively to you as the buyer. The seller has nothing to do with this tax but may have to pay the Plusvalía (a municipal tax on the increase in value of the property since the last sale) as well as income tax on their capital gain – not a payment obligation for you as the buyer, but useful to know when it comes to contract negotiations.

ITP or VAT? Setting the course before the bill arrives

Before any rate can even be applied, it must be established whether your purchase is subject to the ITP or to VAT (IVA) instead. This is not an academic question – anyone who pays the wrong tax has a reversal problem that is time-consuming and not always fully solvable.

If you buy directly from the developer, you pay VAT on the full purchase price, plus stamp duty at the general rate (1.5%) on the notarised deed. Unlike the ITP, this combination is not progressively staggered: for smaller purchase prices it can work out cheaper, but for very high purchase prices often not. Whether a new build or an existing property works out better in terms of ancillary costs cannot be answered in general terms.

The property transfer tax is the largest item among the purchase ancillary costs, but not the only one: notary, land registry, gestoría and usually a lawyer are added on top. What your purchase costs in total is calculated by the purchase ancillary costs calculator — here in brief, in detail on itsown page:

Step by step: how the purchase process works

1. Before the notary appointment: Clarify whether ITP or VAT applies, check the reference value (Valor de Referencia) online at the Catastro, and verify whether one of the discounts described above is applicable.
2. At the notary's office: The notarial deed of sale (escritura) is signed. The notary forwards the data to the land registry but does not handle the tax payment for you.
3. Within the one-month deadline: Submit the self-assessment via Modelo 600 to the ATIB and transfer the tax or pay it in at an authorised bank.
4. Keep proof of payment: You'll need the ATIB receipt for the next step – without it, you cannot proceed.
5. Land registry entry: The payment receipt is submitted to the Land Registry (Registro de la Propiedad); only then will you be registered as the new owner.
6. Review by the ATIB: Within its limitation period, the authority can review the assessed value and demand additional payment if there are discrepancies.

You'll find a detailed overview of the entire process – from the reservation contract to the handover of the keys – in our guide on the process of buying property in Spain.

The most common mistakes – and how to avoid them

• Calculating based on the purchase price instead of the correct assessment basis: If the reference value is higher than the purchase price, the reference value still applies – anyone who overlooks this will hear from the ATIB.
• Not actively claiming discounts: Reduced rates and bonifications are not granted automatically. You must state them in the self-assessment and be able to prove that the requirements are met.
• Underestimating the one-month deadline: Anyone who returns to their home country after the notary appointment can quickly lose track. A power of attorney to a gestoría – a Spanish administrative office that handles bureaucratic tasks like this on your behalf – or to your tax advisor protects you from surcharges.
• Confusing ITP and VAT: If ITP is mistakenly paid instead of VAT (or vice versa) on a purchase from a developer, correcting this is complex and not always fully possible.
• Confusing the island's value threshold with a tax exemption: It only determines whether you're entitled to a discount – not that no tax is due up to that value.
• Not keeping the payment receipt for the land registry entry: Without proof from the ATIB, registration in the Registro de la Propiedad remains blocked.

What comes next? Ongoing tax obligations after the purchase

The ITP is a one-off tax. After the purchase, regular obligations take its place:

• IBI (Impuesto sobre Bienes Inmuebles): the annual property tax levied by the local council.
• Wealth tax (Impuesto sobre el Patrimonio): relevant on the Balearics from a certain level of net worth.
• Non-resident tax (Modelo 210): Anyone who remains liable to tax abroad and does not let the property owes a notional income tax on the value of personal use.
• Community fees (Comunidad de Propietarios): for flats held in joint ownership, a monthly payment that isn't a tax but is just as binding.

More on this in our guides on IBI tax in Spain and on wealth tax.

Checklist: before the notary appointment

• Clarified: ITP or VAT – resale or new build, seller a private individual or a company?
• Reference value (Valor de Referencia) looked up online at the Catastro
• Checked whether the property value is below your island's threshold
• Checked which relief – if any – applies (age, main residence, disability, large family, HPL)
• Tax adviser, lawyer or gestoría engaged for the self-assessment (Modelo 600)
• Liquidity planned for: the calculator above shows you the purchase price including transfer tax; notary, land registry and gestoría fees come on top and are set out in the purchase incidental costs calculator
• One-month deadline from the notary appointment entered in the calendar
• Power of attorney granted, in case you're no longer on-site by the deadline

Further guides on buying property

• Lawyer for buying property in Spain
• Foreign buyers on Mallorca
• AWV reporting obligation when buying property in Spain
• ANEI and nature conservation for plots on Mallorca
• Censo and Alodio for plots on Mallorca

And if you're already searching for something specific: browse our current property listings in Mallorca, before entering your figures into the calculator.

Official sources

• ATIB – Agència Tributària de les Illes Balears (the Balearic tax authority, responsible for ITP and Modelo 600): www.atib.es
• BOE – Boletín Oficial del Estado (the state official gazette, national framework law on ITP and AJD): www.boe.es
• BOIB – Butlletí Oficial de les Illes Balears (Balearic official gazette, the source for Ley 4/2026 and the associated Órdenes): caib.es/eboibfront
• Sede Electrónica del Catastro (official lookup for the Valor de Referencia): sedecatastro.gob.es
• Registro de la Propiedad (Balearic land registries, registration after ITP payment): www.registradores.org

Legal basis and status

The Balearic ITP is governed by Decreto Legislativo 1/2014 (the Balearic version of the taxes devolved by the state), in the version in force since 14 June 2026 under Ley 4/2026, as specified further by Orden 5/2026 in the version amended by Orden 13/2026. The tax is administered by ATIB (Agència Tributària de les Illes Balears, the Balearic tax authority). Rates, value thresholds and assessment caps change with every legislative amendment – so don't rely on static figures in this or any other article, but on the calculator above, which computes against the currently stored register.