Buying property on Mallorca – how high are the incidental costs?

You've found your dream property on Mallorca? Congratulations. Before you sign the pre-contract (arras), take a careful look at the so-called incidental purchase costs. On top of the price and the transfer tax, several other expenses come into play in Spain – and they need to be part of your budget from day one.

They mainly concern the notary, the land registry, the gestoria – and, depending on your situation, a lawyer. So you don't lose track, here's a calm and clear overview.

Assumption: We assume you are an EU citizen and not a Spanish tax resident. Other constellations we'll happily walk through with you in person.

The 7 most important incidental costs

1. Property Transfer Tax (ITP)

Applies when you buy a resale property. Depending on the price, the rate sits between 8 % and 13 %.

2. VAT (IVA) on new builds

For newly built residential property you pay 10 % VAT on the purchase price instead of ITP. For land and commercial it's 21 %.

3. Stamp duty (AJD)

Up to a purchase price of €1,000,000 the stamp duty is 1.5 %; above that it rises to 2 %.

4. Notary fees – for the legally binding deed

The Spanish notary certifies the purchase contract and ensures formal legal certainty. Their fees are regulated by law and usually sit between 0.1 % and 0.3 % of the purchase price. Additional copies, certifications or translations may add to that.

5. Land registry fees – for the entry in the property register

To be officially registered as the new owner, the property has to be entered in the Registro de la Propiedad. Here too, the fees follow a regulated schedule. Plan for 0.1 % to 0.2 % of the purchase price.

6. Gestoria – for the smooth paperwork

In Spain, the gestoria handles much of what a German notary would handle – paying the transfer tax, communicating with the land registry, filing forms. Depending on workload, fees range from €200 to €1,000. If you don't engage your own lawyer, a gestoria is highly recommended in any case.

7. Lawyer's fee – for your legal certainty

Unlike in Germany, Spanish notaries don't check every contractual detail. That's why many buyers bring in a lawyer specialised in real estate. Fees typically range from 0.5 % to 1 % of the purchase price – depending on complexity. If inheritance, tax or corporate matters are involved, it can be higher. In return, you get professional certainty – and you can look forward to your new home with peace of mind.

"Incidental costs are not a detail. They are the second purchase price – so factor them in early." – Stephan Elders, Marketing & Strategy

The whole thing in short

Property Transfer Tax (ITP): 8 % to 13 % – on resale properties

VAT (IVA): 10 % on new builds, 21 % on land and commercial

Stamp duty (AJD): 1.5 % – or 2 % above €1,000,000

Notary fees: approx. 0.1 % to 0.3 % of the purchase price

Land registry / Registro: approx. 0.1 % to 0.2 % of the purchase price

Gestoria: between €200 and €1,000

Lawyer's fee: approx. 0.5 % to 1 % of the purchase price (potentially more)

A rule of thumb for your budget

The most important takeaway: a dream finca with a purchase price of €2,000,000 can quickly add up to roughly 16 % on top – about €320,000 more – once all incidentals are in. Anyone who plans for that early can approach the purchase calmly and realistically.

If you need a concrete calculation for a specific property, get in touch. We'll go through the numbers with you – calmly, without any obligation on your side.