Property taxation · Balearic Islands
In the Balearic Islands, resale properties and new builds follow different tax regimes.
A usada property located in the Balearic Islands is normally subject to Transfer Tax (TPO, commonly referred to as ITP), with a progressive regional tarifa general rate. A first transfer of a new home subject to IVA is generally taxed at 10% IVA, and the deed may also be subject to AJD. The Balearic Islands have reduced rates and tax relief linked to primary residence status, age, disability, family circumstances and other conditions, so it is not enough to apply a single percentage to the price.
Short answer
What tax does the buyer of a home in the Balearic Islands pay?
In a standard residential purchase, the first question is whether the transaction is a usada transfer or a first transfer subject to IVA. For resale properties, the buyer usually self-assesses TPO with the ATIB. For a first transfer of a home by the developer, the buyer normally pays IVA and the deed may be subject to AJD. Regional tax benefits do not apply based on nationality: they depend on the legal conditions of the property and the buyer.
Resale property
8%–13%Progressive general Tarifa TPO rate for properties. The calculation is made using the regional tarifa and the resulting average rate.
First delivery
10%Standard IVA rate for homes in the common territory, including the Balearic Islands. Certain special-regime or publicly promoted VPO homes may be taxed at 4%.
Notarial document
1,5%Standard Balearic rate for notarial documents subject to the graduated charge. There are reductions, tax reliefs and an increased rate of 2% for certain transactions of at least €1.000.000.
A usada property subject to TPO and a first transfer subject to IVA follow different regimes. For new-build properties subject to IVA, AJD may apply to the deed where the relevant requirements are met.
The 8% is the first band of the general TPO tarifa, not a universal flat rate for every price. There are also tax benefits and special rules.
Resale · TPO
The general tarifa is progressive: it increases in bands according to the property's value.
Article 10 of the Balearic Islands Consolidated Text on Transferred Taxes establishes a tarifa for onerous transfers of real estate. The regulations first calculate the tax due according to the bands and then determine the average rate applicable to the taxable base. Therefore, a purchase of 500.000 € is not taxed by applying 9% to the entire amount.
- Up to 400.000 €: 8% band.
- From 400.000,01 € to 600.000 €: 9% band.
- From 600.000,01 € to 1.000.000 €: 10% band.
- From 1.000.000,01 € to 2.000.000 €: 12% band.
- From 2.000.000,01 €: 13% band.
Primary source: Legislative Decree 1/2014 of the Balearic Islands, Article 10.
| Property value | Cumulative tax due at the start of the band | Band rate | Practical interpretation |
|---|---|---|---|
| 0 – 400.000 € | 0 € | 8% | First band of the general tarifa. |
| 400.000,01 – 600.000 € | 32.000 € | 9% | The amount above 400.000 € falls into the next band. |
| 600.000,01 – 1.000.000 € | 50.000 € | 10% | The amount above 600.000 € is taxed at 10% within this band. |
| 1.000.000,01 – 2.000.000 € | 90.000 € | 12% | The next band applies up to the threshold of 2 million. |
| More than €2.000.000 | 210.000 € | 13% | The amount exceeding 2 million falls within the higher band. |
General example: if the relevant tax base of a property usada is 500.000 €, the tax due under tarifa is 32.000 € on the first 400.000 € + 9.000 € on the next 100.000 € = 41.000 €. Example without tax reliefs and assuming that 500.000 € is the applicable taxable base.
Tax reliefs for residential property
The Balearic Islands combine reduced rates and rebates, but each relief has its own requirements.
Balearic legislation provides for a reduced rate of 4% for certain main-residence purchases, 2% for certain groups, and a 100% rebate on the tax due for certain buyers under 30 or people with disabilities. Since 14 June 2026, the fifth additional provision and Order 13/2026 have amended the value thresholds that allow access to several of these reliefs.
Main residence
It may apply where the conditions in Article 10.c are met: main residence, acquisition of at least 50% of full ownership or a right of use/enjoyment, and no holding of at least 50% in another property under the legal terms.
Under the 2026 threshold system, the relief is limited to the first 270.151,20 €, and the excess is taxed at 8%.
Specific groups
Subject to the basic requirements of Article 10.c, it may apply, among other cases, to people under 36 where it is their first home under the terms of Article 10.d, as well as in certain cases involving family disability and large or single-parent families.
The 2% applies to the first 270.151,20 €; the excess is taxed at 8% where the relief can use the extended threshold.
Tax rebate
For the first main residence of people under 30 or people with disabilities ≥33%, provided all the requirements of Article 14 quater are met jointly.
The rebate only applies to the tax due on the first 270.151,20 € of the taxable base, even where the access value may be higher depending on the island.
If the property exceeds 270.151,20 € but falls within the permitted island threshold, the rebate may cover the tax due on the first 270.151,20 €, while the excess is subject to 8%. All personal and financial requirements must also be met.
Since 14 June 2026, the purchase of a property classified as Limited-Price Housing (VPL) may qualify for a regional rebate of 50% on the TPO tax due under Article 14 septies.
Key requirements for the 100% rebate
Habitual residence in the Balearic Islands for at least the 3 years immediately preceding.
Acquisition of at least 50% of full ownership of the first home, subject to limits on other housing rights.
Total taxable base in the latest completed IRPF return: maximum 52.800 € for an individual return or 84.480 € for a joint return.
A mortgage-backed loan for an amount equal to or greater than 60% of the appraised value.
Change in force since 14 June 2026
The value thresholds for accessing certain benefits now depend on the island.
Order 13/2026 adapts Order 5/2026 to the new fifth additional provision. For taxable events from 14 June 2026, the maximum property value used for certain benefits is 331.859,70 € in Mallorca and Menorca and 378.211,68 € in Eivissa and Formentera.
Mallorca
331.859,70 €Island-specific eligibility threshold applicable to the benefits covered by the fifth additional provision.
Menorca
331.859,70 €The legal minimum 2026 raised the limit compared with the previous amount.
Eivissa / Ibiza
378.211,68 €This corresponds to the maximum 40% increase permitted over 270.151,20 €.
Formentera
378.211,68 €Order 13/2026 corrected the previous rounding and set this exact amount.
The fifth additional provision expressly states that the 4% and 2% TPO rates apply only to the first 270.151,20 €, with the remainder taxed at 8%; the 100% TPO/AJD relief covers only the first 270.151,20 €; and the reduced AJD rates of 1% or 0,5% apply to the first 270.151,20 €, with the excess taxed at the general rate under article 15.
See the official update from the ATIB on the new property thresholds from 14 June 2026 and the Order 13/2026.
New build · VAT
In the Balearic Islands, a first delivery of a property subject to VAT is generally taxed at 10%.
The Balearic Islands are part of the Spanish VAT territory. The AEAT states that the sale of a new home by the developer—where it constitutes a first delivery for VAT purposes—is subject to VAT. The current standard residential rate is 10%; certain special-regime or publicly promoted social housing may be taxed at 4%.
- The buyer pays VAT to the seller/developer, who remits it to the tax authorities.
- Up to two parking spaces and annexes located in the same building may be taxed at the property's rate when transferred together and the requirements are met.
- The commercial label “new build” does not replace the tax assessment of whether a first delivery exists.
- A transaction subject to VAT may also be subject to AJD on the deed.
See the national guide from RealtorList on VAT and AJD when buying a new-build property in España.
Basic tax estimate
Net price × applicable IVA + AJD on the deed, calculated under Balearic regulations and any applicable reliefs.
Do not automatically add TPO to the same initial transfer subject to IVA.
Business transactions and waivers of exemptions with specific rules fall outside the scope of this guide to standard residential purchases.
Documented Legal Acts
AJD in the Balearic Islands: 1,5% standard rate, reductions for housing, and an increased rate for high-value transactions.
Article 15 of the Balearic legislation sets a standard rate of 1,5% for first copies of notarial deeds and records that meet the requirements for the progressive charge. Article 17 establishes reduced rates of 1% and 0,5% in certain cases involving a first primary residence. Article 17 bis sets a rate of 2% for certain real-estate transactions where the property's value is equal to or greater than 1.000.000 €.
General rate
General reference for notarial documents subject to the progressive charge in the Balearic Islands.
First primary residence
It may apply to certain first primary residence purchases that meet the requirements of Article 17.1.
Eligible groups
It may apply, subject to the basic requirements of Article 17, in specific cases, including buyers under 36 years of age.
≥ 1.000.000 €
Increased rate for certain first copies of deeds and records concerning transfers or real-estate rights at or above that value.
From 14 June 2026, Article 19 quater provides relief of 100% for deeds relating to a first primary residence for people under 30 years of age or persons with a disability ≥33%, subject to requirements including prior residence in the Balearic Islands, first home ownership, income and mortgage financing.
Additional Provision Five limits the 100% relief to the first 270.151,20 €. If the property falls within the expanded island threshold but exceeds that amount, the excess is taxed under the applicable general rule.
Article 19 quinquies, in force since 14 June 2026, provides relief of 50% of the AJD charge for deeds documenting transfers of homes with the legal classifications of capped-price housing or Vivienda de Precio Limitado (VPL).
Taxable amount
Before applying a rate, check the Catastro reference value.
For TPO on real estate, national legislation provides that the property's value is its reference value on the tax due date. If the declared value, agreed price or consideration is higher than the reference value, the highest of those amounts is used. Where no reference value exists or it cannot be certified, the legally established rules on declared value and market value apply.
Check the value
Obtain the property's reference value as of the tax due date, if available.
Compare it
Compare it with the price/consideration and the declared value under the rule in national Article 10.
Then calculate
Only once the correct tax base has been established should the tarifa TPO rate or, where applicable, the relevant AJD rule be applied.
Calculating ITP solely on the advertised or agreed price may produce an incorrect result when the tax reference value is higher.
Official source: Directorate General for the Cadastre · tax uses of the reference value.
Practical examples 2026
Three different purchases can produce very different tax outcomes.
The following examples isolate acquisition taxes. They do not include notary, Land Registry, lawyer, administrative agent, financing or other costs, and assume that the stated base is the applicable tax base.
Usada · 500.000 €
No tax benefit: first 400.000 € at 8% = 32.000 €; subsequent 100.000 € at 9% = 9.000 €.
41.000 €TPO amount in the example.
Menorca · 325.000 € · under 36
If all requirements for the reduced first-home rate are met: 2% on 270.151,20 € + 8% on 54.848,80 €.
9.790,92 €Example consistent with ATIB's official explanation for the regime in force since 14/06/2026.
Palma · new build · 325.000 € · under 30
If all requirements for the AJD relief are met: standard residential IVA of 32.500 € + AJD of 822,73 € on the non-relieved excess.
33.322,73 €Total IVA + AJD in the example. This does not mean that everyone under 30 years of age is entitled to the relief.
Main-residence status, age, previous residence, income, percentage acquired, ownership of other homes, financing, VPL/VPO classification, reference value and the exact date may change the outcome.
Self-assessment in the Balearic Islands
ATIB specifies a general one-month deadline for TPO/AJD and uses form 600.
Under the current operational guidance of the Balearic Islands Tax Agency, the tax becomes due on the date of the taxable act or contract, and there is a one-month deadline for payment and filing. For properties, the general form is 600, and the relevant supporting documentation must be provided, such as the deed and a simple copy where applicable.
Tax due date
The date on which the taxable act or contract takes place.
General deadline
ATIB states that the relevant filing and payment must be made within one month of the date of the act or contract.
Model
Form 600 for the standard self-assessment of ITP/AJD in the property scenarios covered.
In a standard purchase of a new home subject to VAT, the buyer pays VAT to the seller/developer. This payment should not be confused with the regional self-assessment using form 600 for TPO/AJD.
Common mistakes
The most costly mistakes often start before signing.
Applying 8% to everything
It ignores the progressive tarifa TPO rate and may underestimate a higher-value purchase.
Using an outdated threshold
The island-specific amounts changed with effect from 14 June 2026.
Confusing eligibility with a tax relief
A home may fall within the new island threshold while the benefit is still limited to the first 270.151,20 €.
Forgetting the reference value
The contract price is not always the only figure relevant to the taxable base.
“Under 30 = zero”
The 100% tax relief requires prior residence, income, a first home, financing and other conditions to be met simultaneously.
New build = always VAT
For tax purposes, it must be verified whether the transfer constitutes a first supply; the commercial label is not enough.
AJD always 1,5%
There are reduced rates, tax reliefs and an increased rate of 2% for certain transactions from 1.000.000 €.
Comparing regions
Do not apply rates or tax reliefs from Andalucía, Madrid, Valencia or another region to a property in the Balearic Islands.
Before making a reservation
Calculate the tax implications once the island, type of property and buyer profile have been defined.
For a purchase in Mallorca, Menorca, Eivissa or Formentera, a reliable estimate requires knowing whether it is a first supply or a resale, the applicable tax base, whether it will be the main residence, the buyer's age and circumstances, any other property rights, income and financing where a tax relief is intended to be claimed.
Verified official sources
Legislation and authorities used for this guide.
Last checked: 8 August 2026. For regional rates and tax reliefs, current Balearic legislation prevails; for VAT, national legislation and the AEAT apply.
Related guides
Continue with the canonical page that addresses each part of the purchase.
Frequently asked questions
Taxes when buying a property in the Balearic Islands
The general TPO tarifa is progressive: 8% on the first band up to 400.000 €, 9% on the next band up to 600.000 €, 10% up to 1.000.000 €, 12% on the following band up to 2.000.000 € and 13% on the excess. Reduced rates and tax relief are available where the relevant requirements are met.
Where it is a first residential transfer subject to VAT, the current general rate is 10% in the Balearic Islands. Certain special-regime or publicly promoted VPO homes may be taxed at 4%. It must be verified that the transaction genuinely qualifies as a first transfer for tax purposes.
The general rate for notarial documents subject to the progressive fee is 1,5%. The legislation provides for reduced rates of 1% and 0,5% in certain first primary-residence cases, a 100% tax relief for certain buyers under 30 or people with disabilities, and a rate of 2% for certain property transactions valued at or above 1.000.000 €.
This cannot be stated as a general rule. There is a 100% tax relief on the liability for a first primary residence purchased by people under 30 or people with a disability of 33% or more, but it also requires prior residence in the Balearic Islands, a first home, income limits, mortgage financing and other conditions to be met simultaneously. Furthermore, under the increased thresholds, the tax relief covers only the liability corresponding to the first 270.151,20 €.
For benefits covered by the fifth additional provision and taxable events from 14 June 2026, the threshold is 331.859,70 € in Mallorca and Menorca, and 378.211,68 € in Eivissa and Formentera. Each benefit also requires compliance with its specific conditions.
No. The fifth additional provision establishes that the reduced TPO rates of 4% or 2% apply to the first 270.151,20 €, with the excess taxed at 8%. For AJD, the reduced rates of 1% or 0,5% apply to the first 270.151,20 €, with the excess taxed at the applicable general rate.
Nationality alone does not create a different general TPO, VAT or AJD rate for the purchase. However, certain regional tax benefits require specific personal conditions; for example, the 100% tax relief for certain buyers requires three years of prior habitual residence in the Balearic Islands, so a non-resident who does not meet that condition cannot apply this benefit.
State legislation establishes that, for real estate, the reference value is the baseline for the taxable base and, if the declared value, price or agreed consideration is higher, the highest of those amounts is used. It is therefore advisable to check the reference value before making a reservation or finalising the tax budget.
ATIB states a general deadline of one month from the taxable act or contract for filing and paying ITP/AJD. The general form used for these transactions is form 600. The exact tax accrual date and current procedure should always be verified.
Yes. From 14 June 2026, Balearic regulations provide for a 50% reduction in TPO tax payable on the purchase of Limited-Price Housing (VPL), and a 50% reduction in AJD for deeds relating to capped-price housing or VPL, subject to the applicable legal terms.
Property taxation · Balearic Islands
In the Balearic Islands, resale properties and new builds follow different tax regimes.
A usada property located in the Balearic Islands is normally subject to Transfer Tax (TPO, commonly referred to as ITP), with a progressive regional tarifa general rate. A first transfer of a new home subject to IVA is generally taxed at 10% IVA, and the deed may also be subject to AJD. The Balearic Islands have reduced rates and tax relief linked to primary residence status, age, disability, family circumstances and other conditions, so it is not enough to apply a single percentage to the price.
Short answer
What tax does the buyer of a home in the Balearic Islands pay?
In a standard residential purchase, the first question is whether the transaction is a usada transfer or a first transfer subject to IVA. For resale properties, the buyer usually self-assesses TPO with the ATIB. For a first transfer of a home by the developer, the buyer normally pays IVA and the deed may be subject to AJD. Regional tax benefits do not apply based on nationality: they depend on the legal conditions of the property and the buyer.
Resale property
8%–13%Progressive general Tarifa TPO rate for properties. The calculation is made using the regional tarifa and the resulting average rate.
First delivery
10%Standard IVA rate for homes in the common territory, including the Balearic Islands. Certain special-regime or publicly promoted VPO homes may be taxed at 4%.
Notarial document
1,5%Standard Balearic rate for notarial documents subject to the graduated charge. There are reductions, tax reliefs and an increased rate of 2% for certain transactions of at least €1.000.000.
A usada property subject to TPO and a first transfer subject to IVA follow different regimes. For new-build properties subject to IVA, AJD may apply to the deed where the relevant requirements are met.
The 8% is the first band of the general TPO tarifa, not a universal flat rate for every price. There are also tax benefits and special rules.
Resale · TPO
The general tarifa is progressive: it increases in bands according to the property's value.
Article 10 of the Balearic Islands Consolidated Text on Transferred Taxes establishes a tarifa for onerous transfers of real estate. The regulations first calculate the tax due according to the bands and then determine the average rate applicable to the taxable base. Therefore, a purchase of 500.000 € is not taxed by applying 9% to the entire amount.
- Up to 400.000 €: 8% band.
- From 400.000,01 € to 600.000 €: 9% band.
- From 600.000,01 € to 1.000.000 €: 10% band.
- From 1.000.000,01 € to 2.000.000 €: 12% band.
- From 2.000.000,01 €: 13% band.
Primary source: Legislative Decree 1/2014 of the Balearic Islands, Article 10.
| Property value | Cumulative tax due at the start of the band | Band rate | Practical interpretation |
|---|---|---|---|
| 0 – 400.000 € | 0 € | 8% | First band of the general tarifa. |
| 400.000,01 – 600.000 € | 32.000 € | 9% | The amount above 400.000 € falls into the next band. |
| 600.000,01 – 1.000.000 € | 50.000 € | 10% | The amount above 600.000 € is taxed at 10% within this band. |
| 1.000.000,01 – 2.000.000 € | 90.000 € | 12% | The next band applies up to the threshold of 2 million. |
| More than €2.000.000 | 210.000 € | 13% | The amount exceeding 2 million falls within the higher band. |
General example: if the relevant tax base of a property usada is 500.000 €, the tax due under tarifa is 32.000 € on the first 400.000 € + 9.000 € on the next 100.000 € = 41.000 €. Example without tax reliefs and assuming that 500.000 € is the applicable taxable base.
Tax reliefs for residential property
The Balearic Islands combine reduced rates and rebates, but each relief has its own requirements.
Balearic legislation provides for a reduced rate of 4% for certain main-residence purchases, 2% for certain groups, and a 100% rebate on the tax due for certain buyers under 30 or people with disabilities. Since 14 June 2026, the fifth additional provision and Order 13/2026 have amended the value thresholds that allow access to several of these reliefs.
Main residence
It may apply where the conditions in Article 10.c are met: main residence, acquisition of at least 50% of full ownership or a right of use/enjoyment, and no holding of at least 50% in another property under the legal terms.
Under the 2026 threshold system, the relief is limited to the first 270.151,20 €, and the excess is taxed at 8%.
Specific groups
Subject to the basic requirements of Article 10.c, it may apply, among other cases, to people under 36 where it is their first home under the terms of Article 10.d, as well as in certain cases involving family disability and large or single-parent families.
The 2% applies to the first 270.151,20 €; the excess is taxed at 8% where the relief can use the extended threshold.
Tax rebate
For the first main residence of people under 30 or people with disabilities ≥33%, provided all the requirements of Article 14 quater are met jointly.
The rebate only applies to the tax due on the first 270.151,20 € of the taxable base, even where the access value may be higher depending on the island.
If the property exceeds 270.151,20 € but falls within the permitted island threshold, the rebate may cover the tax due on the first 270.151,20 €, while the excess is subject to 8%. All personal and financial requirements must also be met.
Since 14 June 2026, the purchase of a property classified as Limited-Price Housing (VPL) may qualify for a regional rebate of 50% on the TPO tax due under Article 14 septies.
Key requirements for the 100% rebate
Habitual residence in the Balearic Islands for at least the 3 years immediately preceding.
Acquisition of at least 50% of full ownership of the first home, subject to limits on other housing rights.
Total taxable base in the latest completed IRPF return: maximum 52.800 € for an individual return or 84.480 € for a joint return.
A mortgage-backed loan for an amount equal to or greater than 60% of the appraised value.
Change in force since 14 June 2026
The value thresholds for accessing certain benefits now depend on the island.
Order 13/2026 adapts Order 5/2026 to the new fifth additional provision. For taxable events from 14 June 2026, the maximum property value used for certain benefits is 331.859,70 € in Mallorca and Menorca and 378.211,68 € in Eivissa and Formentera.
Mallorca
331.859,70 €Island-specific eligibility threshold applicable to the benefits covered by the fifth additional provision.
Menorca
331.859,70 €The legal minimum 2026 raised the limit compared with the previous amount.
Eivissa / Ibiza
378.211,68 €This corresponds to the maximum 40% increase permitted over 270.151,20 €.
Formentera
378.211,68 €Order 13/2026 corrected the previous rounding and set this exact amount.
The fifth additional provision expressly states that the 4% and 2% TPO rates apply only to the first 270.151,20 €, with the remainder taxed at 8%; the 100% TPO/AJD relief covers only the first 270.151,20 €; and the reduced AJD rates of 1% or 0,5% apply to the first 270.151,20 €, with the excess taxed at the general rate under article 15.
See the official update from the ATIB on the new property thresholds from 14 June 2026 and the Order 13/2026.
New build · VAT
In the Balearic Islands, a first delivery of a property subject to VAT is generally taxed at 10%.
The Balearic Islands are part of the Spanish VAT territory. The AEAT states that the sale of a new home by the developer—where it constitutes a first delivery for VAT purposes—is subject to VAT. The current standard residential rate is 10%; certain special-regime or publicly promoted social housing may be taxed at 4%.
- The buyer pays VAT to the seller/developer, who remits it to the tax authorities.
- Up to two parking spaces and annexes located in the same building may be taxed at the property's rate when transferred together and the requirements are met.
- The commercial label “new build” does not replace the tax assessment of whether a first delivery exists.
- A transaction subject to VAT may also be subject to AJD on the deed.
See the national guide from RealtorList on VAT and AJD when buying a new-build property in España.
Basic tax estimate
Net price × applicable IVA + AJD on the deed, calculated under Balearic regulations and any applicable reliefs.
Do not automatically add TPO to the same initial transfer subject to IVA.
Business transactions and waivers of exemptions with specific rules fall outside the scope of this guide to standard residential purchases.
Documented Legal Acts
AJD in the Balearic Islands: 1,5% standard rate, reductions for housing, and an increased rate for high-value transactions.
Article 15 of the Balearic legislation sets a standard rate of 1,5% for first copies of notarial deeds and records that meet the requirements for the progressive charge. Article 17 establishes reduced rates of 1% and 0,5% in certain cases involving a first primary residence. Article 17 bis sets a rate of 2% for certain real-estate transactions where the property's value is equal to or greater than 1.000.000 €.
General rate
General reference for notarial documents subject to the progressive charge in the Balearic Islands.
First primary residence
It may apply to certain first primary residence purchases that meet the requirements of Article 17.1.
Eligible groups
It may apply, subject to the basic requirements of Article 17, in specific cases, including buyers under 36 years of age.
≥ 1.000.000 €
Increased rate for certain first copies of deeds and records concerning transfers or real-estate rights at or above that value.
From 14 June 2026, Article 19 quater provides relief of 100% for deeds relating to a first primary residence for people under 30 years of age or persons with a disability ≥33%, subject to requirements including prior residence in the Balearic Islands, first home ownership, income and mortgage financing.
Additional Provision Five limits the 100% relief to the first 270.151,20 €. If the property falls within the expanded island threshold but exceeds that amount, the excess is taxed under the applicable general rule.
Article 19 quinquies, in force since 14 June 2026, provides relief of 50% of the AJD charge for deeds documenting transfers of homes with the legal classifications of capped-price housing or Vivienda de Precio Limitado (VPL).
Taxable amount
Before applying a rate, check the Catastro reference value.
For TPO on real estate, national legislation provides that the property's value is its reference value on the tax due date. If the declared value, agreed price or consideration is higher than the reference value, the highest of those amounts is used. Where no reference value exists or it cannot be certified, the legally established rules on declared value and market value apply.
Check the value
Obtain the property's reference value as of the tax due date, if available.
Compare it
Compare it with the price/consideration and the declared value under the rule in national Article 10.
Then calculate
Only once the correct tax base has been established should the tarifa TPO rate or, where applicable, the relevant AJD rule be applied.
Calculating ITP solely on the advertised or agreed price may produce an incorrect result when the tax reference value is higher.
Official source: Directorate General for the Cadastre · tax uses of the reference value.
Practical examples 2026
Three different purchases can produce very different tax outcomes.
The following examples isolate acquisition taxes. They do not include notary, Land Registry, lawyer, administrative agent, financing or other costs, and assume that the stated base is the applicable tax base.
Usada · 500.000 €
No tax benefit: first 400.000 € at 8% = 32.000 €; subsequent 100.000 € at 9% = 9.000 €.
41.000 €TPO amount in the example.
Menorca · 325.000 € · under 36
If all requirements for the reduced first-home rate are met: 2% on 270.151,20 € + 8% on 54.848,80 €.
9.790,92 €Example consistent with ATIB's official explanation for the regime in force since 14/06/2026.
Palma · new build · 325.000 € · under 30
If all requirements for the AJD relief are met: standard residential IVA of 32.500 € + AJD of 822,73 € on the non-relieved excess.
33.322,73 €Total IVA + AJD in the example. This does not mean that everyone under 30 years of age is entitled to the relief.
Main-residence status, age, previous residence, income, percentage acquired, ownership of other homes, financing, VPL/VPO classification, reference value and the exact date may change the outcome.
Self-assessment in the Balearic Islands
ATIB specifies a general one-month deadline for TPO/AJD and uses form 600.
Under the current operational guidance of the Balearic Islands Tax Agency, the tax becomes due on the date of the taxable act or contract, and there is a one-month deadline for payment and filing. For properties, the general form is 600, and the relevant supporting documentation must be provided, such as the deed and a simple copy where applicable.
Tax due date
The date on which the taxable act or contract takes place.
General deadline
ATIB states that the relevant filing and payment must be made within one month of the date of the act or contract.
Model
Form 600 for the standard self-assessment of ITP/AJD in the property scenarios covered.
In a standard purchase of a new home subject to VAT, the buyer pays VAT to the seller/developer. This payment should not be confused with the regional self-assessment using form 600 for TPO/AJD.
Common mistakes
The most costly mistakes often start before signing.
Applying 8% to everything
It ignores the progressive tarifa TPO rate and may underestimate a higher-value purchase.
Using an outdated threshold
The island-specific amounts changed with effect from 14 June 2026.
Confusing eligibility with a tax relief
A home may fall within the new island threshold while the benefit is still limited to the first 270.151,20 €.
Forgetting the reference value
The contract price is not always the only figure relevant to the taxable base.
“Under 30 = zero”
The 100% tax relief requires prior residence, income, a first home, financing and other conditions to be met simultaneously.
New build = always VAT
For tax purposes, it must be verified whether the transfer constitutes a first supply; the commercial label is not enough.
AJD always 1,5%
There are reduced rates, tax reliefs and an increased rate of 2% for certain transactions from 1.000.000 €.
Comparing regions
Do not apply rates or tax reliefs from Andalucía, Madrid, Valencia or another region to a property in the Balearic Islands.
Before making a reservation
Calculate the tax implications once the island, type of property and buyer profile have been defined.
For a purchase in Mallorca, Menorca, Eivissa or Formentera, a reliable estimate requires knowing whether it is a first supply or a resale, the applicable tax base, whether it will be the main residence, the buyer's age and circumstances, any other property rights, income and financing where a tax relief is intended to be claimed.
Verified official sources
Legislation and authorities used for this guide.
Last checked: 8 August 2026. For regional rates and tax reliefs, current Balearic legislation prevails; for VAT, national legislation and the AEAT apply.
Related guides
Continue with the canonical page that addresses each part of the purchase.
Frequently asked questions
Taxes when buying a property in the Balearic Islands
The general TPO tarifa is progressive: 8% on the first band up to 400.000 €, 9% on the next band up to 600.000 €, 10% up to 1.000.000 €, 12% on the following band up to 2.000.000 € and 13% on the excess. Reduced rates and tax relief are available where the relevant requirements are met.
Where it is a first residential transfer subject to VAT, the current general rate is 10% in the Balearic Islands. Certain special-regime or publicly promoted VPO homes may be taxed at 4%. It must be verified that the transaction genuinely qualifies as a first transfer for tax purposes.
The general rate for notarial documents subject to the progressive fee is 1,5%. The legislation provides for reduced rates of 1% and 0,5% in certain first primary-residence cases, a 100% tax relief for certain buyers under 30 or people with disabilities, and a rate of 2% for certain property transactions valued at or above 1.000.000 €.
This cannot be stated as a general rule. There is a 100% tax relief on the liability for a first primary residence purchased by people under 30 or people with a disability of 33% or more, but it also requires prior residence in the Balearic Islands, a first home, income limits, mortgage financing and other conditions to be met simultaneously. Furthermore, under the increased thresholds, the tax relief covers only the liability corresponding to the first 270.151,20 €.
For benefits covered by the fifth additional provision and taxable events from 14 June 2026, the threshold is 331.859,70 € in Mallorca and Menorca, and 378.211,68 € in Eivissa and Formentera. Each benefit also requires compliance with its specific conditions.
No. The fifth additional provision establishes that the reduced TPO rates of 4% or 2% apply to the first 270.151,20 €, with the excess taxed at 8%. For AJD, the reduced rates of 1% or 0,5% apply to the first 270.151,20 €, with the excess taxed at the applicable general rate.
Nationality alone does not create a different general TPO, VAT or AJD rate for the purchase. However, certain regional tax benefits require specific personal conditions; for example, the 100% tax relief for certain buyers requires three years of prior habitual residence in the Balearic Islands, so a non-resident who does not meet that condition cannot apply this benefit.
State legislation establishes that, for real estate, the reference value is the baseline for the taxable base and, if the declared value, price or agreed consideration is higher, the highest of those amounts is used. It is therefore advisable to check the reference value before making a reservation or finalising the tax budget.
ATIB states a general deadline of one month from the taxable act or contract for filing and paying ITP/AJD. The general form used for these transactions is form 600. The exact tax accrual date and current procedure should always be verified.
Yes. From 14 June 2026, Balearic regulations provide for a 50% reduction in TPO tax payable on the purchase of Limited-Price Housing (VPL), and a 50% reduction in AJD for deeds relating to capped-price housing or VPL, subject to the applicable legal terms.
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