Legal and tax checklist when buying in Balearics (2025): notary, taxes and deadlines

Buying property in Balearics involves a series of specific legal and tax procedures that differ from other autonomous communities. This checklist will guide you step by step so you don't forget anything and avoid future problems.

Before signing: essential verifications

1. Property Registry extract

• Cost: €9-15 (online or in person)
• What it verifies: Legal owner, charges, mortgages, seizures
• Deadline: Request updated version (maximum 30 days old)
• Alert: If charges or annotations appear not explained by seller, investigate

2. Habitability certificate

• What it is: Certificate that property meets minimum habitability requirements
• Mandatory: For property transmission
• Validity: 15 years from issue
• Responsible: Seller must provide it, but verify date

3. Energy efficiency certificate

• Mandatory: Since 2013
• Validity: 10 years
• Importance: Letter A/B increases value, E/F/G penalizes
• Renewal cost: €150-300

4. Urban planning status

• Verify at Town Hall: Building licenses, AFO (Assimilated Out of Planning)
• Old constructions: Many have irregularities, ensure they're legalizable
• Extensions without license: May force you to demolish

5. IBI up to date

• Responsibility: Buyer responsible for previous IBI debts
• Verification: Request receipts last 4 years
• If debts: Deduct from price or demand payment before signing

Taxes when buying in Balearics

New construction: VAT + AJD

• VAT: 10% of price (housing) or 21% (other)
• AJD (Documented Legal Acts): 1.2% of price
• Total: 11.2% on purchase price
• Example: €1,200,000 villa = €134,400 in taxes

Second-hand: ITP

• ITP (Property Transfer Tax): Progressive scale in Balearics
• Up to €400,000: 8%
• €400,001-600,000: 9%
• €600,001-1,000,000: 10%
• Over €1,000,000: 11%
• Example: €1,200,000 villa = ~€125,000 ITP

Notary and registry expenses

Notary

• Cost: 0.3-0.5% of purchase price
• Example: €1,200,000 villa = €3,600-6,000
• Includes: Public deed, authorized copies
• Tip: You can choose notary (not obliged to be seller's)

Property Registry

• Cost: 0.15-0.25% of price
• Example: €1,200,000 villa = €1,800-3,000
• Registration deadline: 1-3 months from signing

Agency/lawyer

• Optional but recommended: Especially if foreigner
• Cost: €1,500-3,000 depending on complexity
• Services: Previous verifications, signing accompaniment, tax management

Summary of total purchase costs

Example: €1,200,000 second-hand villa in Alcudia

• Purchase price: €1,200,000
• ITP (11%): €125,000
• Notary: €4,800
• Registry: €2,400
• Agency: €2,000
• TOTAL COSTS: €134,200 (11.2% on price)
• TOTAL INVESTMENT: €1,334,200

Typical process timelines

• Property reservation: Deposit €10,000-30,000 (day 0)
• Earnest money contract: 10% price (weeks 2-4)
• Legal verifications: 2-4 weeks
• Deed signing: 4-8 weeks from earnest
• Tax payment: 30 days from signing
• Registry inscription: 1-3 months from signing
• Total process: 2-3 months from accepted offer

Documents you need (buyer)

EU citizens

• Valid passport or ID card
• NIE (mandatory to buy, 2-4 week process)
• Bank certificate of funds (if cash purchase)
• Funds origin declaration (if >€50,000 cash)

Non-EU citizens

• All above
• Residence permit (if applicable)
• In some cases, country of origin reciprocity certificate

Common mistakes to avoid

• ❌ Not verifying Registry charges before signing
• ❌ Paying before having signed deeds
• ❌ Not checking building licenses for previous renovations
• ❌ Forgetting to budget taxes (11-12% additional to price)
• ❌ Not hiring independent lawyer (uses bank's or seller's)
• ❌ Signing without understanding all contract clauses

Final advice: professional counsel

Although you can buy without lawyer, investing €1,500-3,000 in legal counsel saves you risks of problems that can cost tens of thousands of euros. Especially in purchases >€500,000, it's an investment absolutely worthwhile.