Buying Property in Ibiza

When looking for property in Ibiza, you’ll usually deal with:

• Estate agents (Inmobiliarias): Lightly regulated, regionally based and often multilingual. Check their professionalism and note that commission is usually built into the price. The same property may appear with different agents at different prices.
• Property searchers: Independent specialists who shortlist properties for you. Some charge a fee, others take commission from the agent.
• Notaries: Public officials who legalise transactions, check titles and ensure no outstanding debts. Using a notary is compulsory.
• New builds and developments: Often bought directly from developers. Research the developer’s track record and past projects.

Independent legal advice is essential. Choose your own lawyer (registered with the Bar Association), not one recommended by an agent, and make sure you get an NIE number (foreign identity number) to handle taxes.

It’s also smart to explore your mortgage options early so you know your budget.

Buying in Spain involves several key stages:

• Initial contract (Opcion de Compra): After your offer is accepted, a binding contract is drawn up with details of buyer, seller, price, property description, fixtures, fees and clauses. A deposit is paid at this point. For new builds, staged payment plans may apply.
• Mortgage arrangements: Sort your financing before moving further.
• Notary instruction: The notary verifies the legality of the transaction and prepares the final deed.
• Completion: On completion day, the final deed (Escritura) is signed by all parties in front of the notary. Remaining funds are paid, insurance should be in place, and taxes are settled. The deeds are then registered in your name.

If you can’t attend, you can grant power of attorney.

Before completion, make sure you:

• Order a Nota Simple from the Land Registry to check ownership, debts and restrictions.
• Confirm planning permissions, licences and land boundaries.
• Ensure agreements cover outstanding taxes and utility bills.
• Use a lawyer fluent in English and Spanish to guide you.
• Consider a survey, ideally from an RICS-accredited surveyor.
• Negotiate the price, but remember the asking price often includes the agent’s commission.

Always check the legal and financial status of the property thoroughly — once you own it, you’re responsible for any debts attached.

Expect to pay additional costs on top of the purchase price, often around 10%. These may include:

• Legal fees
• Notary and land registration fees
• Estate agent fees (usually included in the asking price)
• Property transfer tax or VAT (for new builds)
• Plusvalia tax (normally paid by the seller but can be passed on)
• Mortgage arrangement fees
• Currency exchange costs if transferring funds from abroad

For off-plan purchases, make sure deposits are bank guaranteed and the finished build is properly signed off by a registered architect.

Non-residents can usually borrow a portion of the property value, subject to valuation. Requirements include proof of income, tax returns and life insurance. A Spanish bank account is also necessary.

Your options include:

• Spanish banks and lenders – each has its own criteria and fees.
• Mortgage brokers – useful for advice, lender access and handling language barriers.
• Estate agent mortgage services – similar to brokers but less independent.

Always get professional advice to compare terms and avoid hidden costs.

As a property owner in Spain, you’ll need to budget for:

• Wealth tax – based on property value, paid annually.
• Inheritance laws – very different to the UK. A Spanish will is strongly advised to avoid complications, especially with blended families.

You’ll also pay local taxes such as:

• IBI – annual property tax.
• Basura – waste collection.

These vary by municipality and are collected through the local SUMA office.

Don’t rely solely on agents or sellers for advice — always do your own checks. Owning property abroad may affect your UK and Spanish tax situation, especially for:

• Rental income (declare both in Spain and the UK)
• Capital gains when selling
• Succession and inheritance rules
• Double taxation agreements

Since tax and legal systems vary widely, independent advice is essential before buying.