Note

Transfer tax (ITP) in the Balearic Islands

§ 1Five brackets

The regional tax agency sets the rate for resale property in five brackets. The rate is 8% up to €400,000, 9% up to €600,000, 10% up to €1,000,000, 12% up to €2,000,000, and 13% above that. The consolidated legislative decree of the islands is the legal source.

§ 2Reduced rates

A habitual home with a value of up to €270,151.20 carries a reduced rate of 4%. Buyers under thirty-six buying a first home, and some other groups, pay 2%. The agency lists the conditions, which cover the use of the home, the age of the buyer and the value, and a buyer who misses one pays the ordinary rate.

§ 3Checking how the table applies

A table of brackets can be applied in different ways, to the whole value or to each band. Ask your adviser to show the calculation for your own price and to confirm it against the agency's guidance. Do not rely on a quick estimate from a website.

§ 4Before you sign

The tax base is the higher of the official reference value and the price. The tax is paid after signing, within the regional deadline, and registration depends on it. Ask your lawyer or gestor to file the return and to give you the deadline in writing.

§ 5Buying in the Balearic Islands: what to ask

The Balearic Islands include some of the highest-priced markets in Spain, so the higher brackets are relevant to many buyers there. Ask your adviser to apply the table to your price and reference value, to say whether each rate applies to the whole value or to a band, and to compare the result with the reduced rate if you might qualify.

Islands also raise practical questions: licences for holiday letting, the cost of works and the availability of local professionals. Ask for written quotes from people who know the island, and check the rules for the exact address before you reserve.

§ 6After the deed

Keep the receipt for the tax payment, the deed and the registry entry together in one folder. If you sell one day, the buyer's adviser will ask for them, and the tax authority in the Balearic Islands can ask you to show how the base was set. A note of the reference value you were given, and who gave it, costs nothing to keep and can save an argument years later.

§ 7An announced exemption

Announced, not law: on 20 October 2026, in the general policy debate of the Balearic Parliament, the regional government said, according to press, that it will exempt buyers under 36 from the transfer tax and the stamp duty on a first home, halve both for ages 36 to 40, and halve rather than waive the stamp duty on a mortgage deed. No text, date or conditions had been published. Until a text is published, the rules above apply. The regional tax agency page we read also lists a full bonus for first-home buyers under 30 and for some people with a disability, subject to a price cap, income limits and residence conditions, which we did not detail.

§ 8How other regions compare

The rate in one region says little until it is set beside the others. For the rules that all of them share, see the regional transfer tax.

If you are weighing several areas, read the Andalusian rate next, then the Basque and Navarre rules.

Buyers choosing between regions often set the rate in each region beside Castilla-La Mancha's transfer tax.

For other parts of the country, see Catalonia's transfer tax and Galicia's transfer tax.

Madrid's transfer tax and Murcia's transfer tax show how different neighbouring systems can be.

Two more systems to look at are lower rates for young buyers and families and Valencia's transfer tax.

Tax note. Rates depend on the region, the type of property and the buyer, and they change. Figures here are dated and sourced; examples are illustrative and show their assumptions. Confirm yours with the regional tax agency or a tax adviser.