What it costs to buy

A resale home in the Balearics pays the regional transfer tax (ITP) on a sliding scale — 8% up to €400,000, 9% to €600,000, 10% to €1 million, 12% to €2 million and 13% above €2 million (Balearic Tax Agency, ITP). A new home bought from the developer is a first delivery and pays VAT instead — 10% for housing — plus the deed stamp duty (AJD), which in the Balearics is 1.5%, rising to 2% where the value is €1 million or more (Spanish Tax Agency, VAT or ITP; Balearic Tax Agency, AJD).

Before you buy

A foreign buyer needs an NIE, the identity number for foreigners with economic interests in Spain, applied for on form EX-15 with fee 790-012 through the police or a consulate (Policía Nacional, NIE). Deals are commonly secured with a private deposit contract (arras) before the public deed is signed before a notary. The type of arras decides what happens to the deposit if either side walks away — make your lawyer explain which one you are signing.

What it costs to hold

A non-resident who keeps a Balearic home for their own use pays Spanish non-resident income tax every year on an imputed income of 1.1% or 2% of the cadastral value, at 19% for residents of the EU and EEA and 24% for others, declared on form 210 (Spanish Tax Agency, imputed income). Non-residents are also within Spanish wealth tax on their Spanish assets, with an exempt minimum of €700,000 under the state rules; EU/EEA residents may opt for regional rules (Spanish Tax Agency, wealth tax for non-residents).

Selling

When a non-resident sells, the buyer must withhold 3% of the agreed price and pay it to the tax agency on form 211 (Spanish Tax Agency, withholding). The gain itself is taxed at 19%, and the withholding is credited against it (Spanish Tax Agency, capital gain on sale).

Residency

The Spanish investor visa that once accepted property purchases is gone: the Ministry of Economy's programme page states that Organic Law 1/2025 — in force since 3 April 2025 (BOE) — emptied the investor-visa articles of the entrepreneurs' law, while existing permits may still be renewed under its transitional provisions (Ministerio de Economía, Comercio y Empresa).